The Fed's nod to the end of its rate hiking cycle could mean 'last call' for savers

• The Federal Reserve raised its fed funds rate for the 10th time on Wednesday, to a range of 5%-5.25%.
• Savers looking for a return from CDs should move quickly, Bankrate said.

People looking for a return from squirreling away money should act quickly as rates on at least one product are likely to drift lower, Bankrate said Wednesday after the Federal Reserve raised its key borrowing rate to its highest in nearly 20 years.

"This could be 'last call' for savers. CD yields on maturities of one year and longer have peaked and now is the time to lock in," Greg McBride, chief financial analyst at Bankrate, said in a note.

He added: "A slowing economy coupled with the Fed moving to the sidelines mean CD yields will start pulling back soon."

CDs, or certificate of deposits, offer a fixed interest rate, and they usually have higher returns over savings accounts as money is committed to being locked in for a period of time.

The Federal Reserve Open Market Committee on Wednesday unanimously voted to raise the fed funds rate to 5%-5.25%. This year, the benchmark rate has moved above 5% for the first time since 2006.

The Fed also said Wednesday it "would be prepared to adjust the stance of monetary policy as appropriate" if risks that stand in the way of its policy goals emerge.

The move underscores the Fed's commitment to pulling down still-elevated inflation, as policymakers provided a path to pause rate hikes or raise the key lending rate further if necessary, McBride said.

For now, Bankrate's list of the best current CD rates and Insider's list of CD rates feature yields of 5.1% to 5.25%.

The average rate on a 1-year CD was a relatively paltry 0.22% in April 2022, shortly after the Federal Reserve began its aggressive rate-hike campaign by lifting interest rates from 0%.