By Sabrina Karl

Anyone watching the news knows that the Federal Reserve has raised interest rates dramatically this year. And though no one can perfectly predict future Fed moves, it’s widely expected more hikes are coming.

For those with cash savings, this raising rate environment is certainly good news. For the first time in many years, savers can earn 3% to 4% with the best-paying savings accounts and certificates of deposit.

But since rates will likely go higher still, the case for opening a CD right now is tricky. Locking in a great rate for years to come (when the future is always uncertain) is tempting. The trade-off, of course, is potentially missing out on a higher rate later.

Fortunately, there are smart strategies in this situation. For one, consider short-term CDs now. Certificates of 3- and 6-month terms are obvious choices, but also consider stretching to 12 months, where you’ll be able to earn a higher APY. Then when rates stabilize, you can move your money to higher-rate, longer-term CDs.

It’s also wise to instead consider a high-yield savings account. The best of these accounts are paying upwards of 3% (and typically pay more than the best 3-month CDs). Because your funds will remain completely accessible, you can withdraw at any time to lock into a CD when the time is right.

Another option is a special certificate where you can enjoy one rate increase without cashing in the CD. Typically called a “step-up” or “raise your rate” certificate, these products let you choose one time in your CD’s term to upgrade to the current rate.

Of course, your decision will depend on your personal financial situation and timeline for your funds. There are many different ways to strike a balance between securing a good thing and keeping your options open.