Are Certificates of Deposit (CDs) Quietly Costing You Money?

Are Your CDs Keeping Up With Inflation?

If your Certificate of Deposit (CD) has recently matured, or is about to, it's a good time to take a closer look at how your savings are performing. CDs have long been viewed as a "safe" place to park cash, but in today's inflationary environment, safety can come at a cost: the erosion of your purchasing power.

The Problem: Fixed Returns in a Rising-Price World

CDs offer predictable returns, but that predictability can be misleading when inflation runs higher than your yield. In 2025, the average CD return has hovered around 2%, while inflation remains near 2.9%. In this scenario, your real return, what your money actually buys after inflation, is negative.

Even in the best economic conditions, CDs rarely outpace inflation. But during periods of stagflation, when prices rise and growth slows, they often fall further behind. Every year that your CD underperforms inflation, your savings quietly lose value.

The Comparison: CDs vs. Gold and Silver

When we look at the numbers, the contrast is striking.

Gold has not only kept pace with inflation, but it has outperformed it by a wide margin over the long term. Since 2000, gold's annualized return has averaged roughly 10% per year, based on spot price performance. Silver has followed closely behind at 9%, outpacing inflation and offering investors both growth and diversification potential.

That's more than 3x the pace of inflation and 5x the return of the average CD.

While CDs lock in your rate and limit upside, gold and silver have tended to rise in value during the very times when inflation, uncertainty, and market volatility have eroded the value of traditional savings.

Why Precious Metals Help Preserve Purchasing Power

Gold and silver behave differently from interest-bearing accounts. Instead of being tied to bank yields or central bank policy, their value often moves opposite to the dollar and inflation trends.

That's why investors often consider adding physical gold and silver to diversify their portfolios and hedge against rising prices, falling interest rates, or potential market turbulence. In fact, Morgan Stanley recently updated their guidance to a 60/20/20 allocation that includes gold to capitalize on its stabilizing performance.

Historically, precious metals have acted as a financial stabilizer, helping investors maintain purchasing power when other assets fall behind.

What to Do If Your CD Is About to Mature, or If You've Been Considering One

If your CD is maturing soon, you're at a crossroads. You can renew and lock in another fixed rate, potentially one that still trails inflation, or explore assets that may help outpace inflation and protect your long-term purchasing power.

Many investors use this opportunity to review their savings and retirement strategies and consider whether allocating a portion to physical gold or silver could create a better balance between security and growth potential.

If you believe that inflation will continue to fall or that the cost of living is coming down, a CD might still be a great option for you. However, if you have concerns about the national debt, persistent inflation, or the long-term erosion of the dollar, now may be the perfect time to consider gold, an asset with a proven history of protecting wealth through every economic cycle.

Take the Next Step Toward Inflation Protection

Before you roll over your CD, take a moment to explore how gold could fit into your portfolio. Lear Capital's Precious Metals Specialists can answer your questions, explain the process, and help you understand your options.

Call 855-271-2873 to speak directly with a Precious Metals Specialist, or request your free Gold Investor Kit to learn more.

Because in today's economy, keeping your savings "safe" shouldn't mean watching their value disappear.