The Federal Reserve is meeting next week, and while no immediate rate change is expected, there's a bigger question on the horizon: What comes next?

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If the Fed starts preparing markets for rate cuts later this year, it could mean that CD rates will fall as well. CD rates have been relatively high for the last few years, but that won't last forever. In fact, they could start dropping soon.

Here's why you may want to get ahead of a possible rate cut by locking in your CD rate now.

Why the Fed's meeting matters

As of now, futures traders see a 99% chance that the Fed will keep rates unchanged at its June 17-18 meeting, per the CME FedWatch Tool.

But that doesn't mean cuts definitely aren't on the horizon. If Fed officials mention planned rate cuts for later this year, banks could react by trimming their CD rates in advance.

In fact, some have already started -- which is why now may be the time to act.

CD rates are still high -- for now

CD rates are closely tied to the Fed's benchmark rate. As that rate rises or falls, CD yields tend to follow. And right now, top CD rates are still near multiyear highs, with APYs as high as 4.60%.

Once you open your CD, your return is locked in for the duration of the term, which is the main advantage of a CD. That's why you'll want to lock in a high CD rate while you still can.

CD basics: How they work and how to open one

Put simply, a certificate of deposit (CD) is a type of savings account that locks in your money for a set period, usually anywhere from a few months to a few years, in exchange for a fixed interest rate.

You can open one in just a few simple steps:

1. Choose a term. Common terms range from 6 months to 5 years. Pick one based on when you'll need the money.
2. Compare rates. Shop around for the best APYs. Online banks often offer higher rates than traditional banks.
3. Fund your CD. Most banks let you open a CD via bank transfer or check. Minimum deposits vary by institution.
4. Make a plan for the maturity date. Once your CD matures, you can "renew" it by opening a CD with the same term (and a potentially different rate) or transfer the cash to a different account.

One popular strategy involves building a CD "ladder" -- splitting your money across different term lengths. This creates staggered maturity dates, so a portion of your money becomes available at regular intervals to provide flexibility.

You'll also want to avoid early withdrawals, which usually come with penalties that can reduce your overall return. Discipline is key.

Don't wait for rates to fall

There's a chance CD rates hold steady through the summer. But if you wait too long, you could miss your chance to lock in a high yield. Some banks are already reducing CD offers based on what they expect the Fed to do.

And while alternatives like high-yield savings accounts offer competitive returns, their rates are variable. If you're sitting on extra cash you don't need right away, putting it in a fixed-rate CD now could give you peace of mind.

Want to lock in a great rate while you still can? Compare top CDs and open one today.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Your credit limit is the maximum amount a lender allows you to borrow on a credit card. So higher is better, right?

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In most cases, yes. A $50,000 credit limit, for example, means you likely have a strong credit history, high income, and low existing debt. But for big spenders, a high credit limit comes with risks.

Here's what you need to know about the pros and cons of a $50,000 credit limit.

Benefits of a high credit limit

Greater financial flexibility

A high credit limit can be a great way to pay for big purchases or cover you in an emergency.

You never want to charge more than you can pay off in full. That's why everyone needs an emergency fund in a savings account. But a high-limit credit card can come in very handy when you need to cover a big expense -- especially if it's on short notice.

Improved credit utilization ratio

Credit utilization is the ratio of your credit card balances to your credit limits, and it accounts for about 30% of your credit score. Basically, credit issuers like to see that you're not always using up most or all of the credit they're giving you.

If you maintain low balances, a higher credit limit will lower your credit utilization ratio and increase your credit score.

Valuable rewards and perks

Premium, high-limit credit cards often come with superior rewards, including higher cash back rates, travel rewards, and exclusive offers.

Click here to check out one travel credit card with a minimum credit limit of $5,000 and user-reported limits reaching $50,000 or more. You'll also earn boosted points in certain categories like travel and dining, and a higher redemption value for your points when redeemed through the issuer's portal.

Risks of a high credit limit

Potential for overspending

A higher limit may tempt some people to spend beyond their means, leading to increased debt and financial strain.

If you have a history of overspending, it's probably smart to start with a lower credit limit and slowly work your way up.

Impact on credit score

While a higher limit can improve your credit utilization ratio, carrying a high balance can harm it. It'll also result in interest charges if you don't pay it off on time.

Always remember the number one rule of credit cards: Never spend more than you can pay off in full every month. Try to avoid carrying a monthly balance at all costs.

Should you aim for a $50,000 credit limit?

A $50,000 credit limit can be a blessing or a curse. Consider the following:

• Financial discipline: If you consistently pay off your balances in full, a higher limit can be a plus.
• Income level: A higher income may justify a larger credit limit if you're spending lots every month.
• Credit goals: A higher limit can lower your credit utilization ratio and thus improve your credit score.

If you struggle with managing credit or are prone to overspending, however, a lower limit may be a better starting point.

Want to build up to a higher credit limit today? Consider one of the cards from our expert-curated best high-limit credit cards list as your starting point.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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If you've been waiting for the right time to open a certificate of deposit (CD), this is probably it.

Looking for a secure place to grow your savings? See our expert picks for the best FDIC-insured high-yield savings accounts available today - enjoy peace of mind with competitive rates.

CD rates are still hovering at 4.00% APY and above, a huge increase from just a few years ago when rates were stuck near zero. But with the Federal Reserve expected to cut interest rates later this year, CD rates are all but guaranteed to fall as well.

Here's why now's the time to lock in a CD and get a higher guaranteed return today.

Rate cuts are expected later this year

The Fed has signaled that it will start cutting interest rates later this year, despite balking at its recent May meeting. When that happens, CD rates will almost definitely follow.

Historically, when the Fed begins a rate-cutting cycle, banks respond by lowering interest rates on savings products like CDs. CD rates tend to move in the same direction as the federal funds rate, which affects how much banks are willing to pay depositors.

That means today's best CD rates could disappear quickly. And we've already seen big banks like Marcus and Bread Savings trim their CD rates in anticipation.

Locking in now could protect your savings

Opening a CD today lets you lock in a high rate for a fixed period of time (generally between three months and five years). If rates fall later this year, you'll still earn that guaranteed return while others get stuck with lower yields. Meanwhile, savings accounts have variable rates that can change at any time.

CDs also come with federal insurance (up to $250,000 per depositor, per bank), so you don't have to worry about bank failure. Just be sure you won't need the money during the term so you can avoid early withdrawal penalties.

How to open a CD

Opening a CD is simple. Here's how to do it:

1. Compare rates -- Look at top online banks and credit unions, not just traditional banks.
2. Choose a term -- Determine how long you can afford to lock up your money.
3. Check the fine print -- Look for early withdrawal penalties, minimum deposits, and renewal rules.
4. Fund your CD -- Transfer funds from a linked account

Many banks let you open a CD in minutes online, and some offer no-penalty CDs if you want more flexibility.

Lock in your higher rate today

If history is any guide, CD rates won't stay this high for much longer. With rate cuts expected in the coming months, now's a smart time to lock in a high, guaranteed return. Just make sure you're comfortable keeping your money parked until the term ends.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.