Why a $10,000 short-term CD is worth opening before September

Borrowers eagerly awaiting an interest rate cut from the Federal Reserve this September may want to start making some strategic moves now to prepare. Homebuyers, for example, will want to be well-positioned to compete in a new market should rates start to decline again and competition increase. But it’s not just borrowers who will want to get ahead of anything that could happen after the central bank meets again on September 17. Savers, too, should be judicious and savvy in their current approach.

For many, even in today’s slightly cooler rate climate, that means exploring certificate of deposit (CD) account options. Rates on these accounts are still relatively high this August, and with a short-term CD, specifically, savers can lock in a high rate without having to sacrifice extended access to their funds as these accounts mature in 12 months or less. This makes this unique account type an especially attractive option for larger, five-figure deposit amounts. 

Specifically, there’s a compelling case to be made for opening a $10,000, short-term CD now, before the calendar turns to September. Below, we’ll explain why.

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Why a $10,000 short-term CD is worth opening before September

Here are four big reasons why opening a CD account in this amount, in this length, makes sense to do before September 1:

Interest rate cuts appear imminent

The chances of a rate cut courtesy of the Federal Reserve, which has kept its federal funds rate unchanged for all of 2025, are significant now. There’s more than a 91% chance rates will be cut by 25 basis points in September, according to the CME Group’s FedWatch tool. That will almost certainly result in lower rates being offered by banks and lending institutions on their savings vehicles and CD accounts won’t be immune. So don’t wait for that to happen, especially when you can find a short-term CD rate around 4.50% or higher by shopping around online now.

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Rate cut impacts will be hard to time

Yes, rate cuts will impact CD rates. But it’s difficult to tell when, exactly, and by how much. It’s important to remember that banks don’t need to wait for the Fed to officially cut rates for them to lower what they offer savers. As a cut becomes more likely, many banks may reduce their rates in advance of that move. And that could be much earlier than an official Fed announcement on September 17. So, be strategic, but don’t overanalyze what could be your last chance to lock in a high CD rate for the foreseeable future.

The more you deposit, the more you’ll earn

It may seem obvious on paper, but it’s worth reiterating that the more you deposit into a CD account, the more interest you stand to earn. This is largely why a $10,000 deposit into a 6-month CD with a rate of 4.45% is so much more valuable now than a $5,000 deposit or even $1,000 deposit would be. The difference between earnings is worth more than $100. One of your main goals with a CD, after all, should be to earn as much interest as possible. A $10,000 deposit into one of the better short-term CD account options, then, can help accomplish that goal.

It won’t prevent you from pivoting in the future

Lenders discourage savers from withdrawing their CD money prematurely by issuing an early withdrawal penalty if the account is closed before it has matured. And that penalty could negate all or most of the interest earned to that point. That said, leaving $10,000 alone in an account for an extended period is understandably difficult to do in today’s still unpredictable economy. But short-term CDs won’t prevent you from pivoting and changing strategies as terms here mature between 12 months (the maximum) and 90 days, approximately. This will allow you to earn a substantial return, protect your principal and still keep your options open for any savings moves you’d like to make over the next year.

The bottom line

A $10,000 short-term CD isn’t the right move for every saver now, especially if there’s an approximate September 1 deadline to act before. But with rates here still high, the future impact of predicted cuts hard to measure, a substantial return to be earned with very little effort on behalf of the saver and flexibility to pivot in a way long-term CDs do not offer, this could be the natural way to grow and protect your money for the next few months or so.