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Some Top CDs Have Raised Rates Instead of Cutting Them—Will More Follow?

Some Top CDs Have Raised Rates Instead of Cutting Them—Will More Follow?

Trader From HellEducation5 hours ago2 Views

Key Takeaways

Though CD rates have generally edged down in 2025, surprise high-yield deals are still popping up.
Eight CDs raised their APYs over the past month to claim best-in-term status—and seven of those top rates are still available.
The Fed is still likely months away from cutting rates, keeping the best CD rates mostly in a holding pattern.
To stand out in a mostly flat CD market, some banks and credit unions opt to raise their rate to attract attention and new deposits.

The full article continues below these offers from our partners.

The Fed Hasn’t Moved—But Some Standout CDs Have

At the end of 2024, the Federal Reserve began reversing its historic rate-hike campaign, which had pushed the federal funds rate to a 23-year high by July 2023 and kept it there for 14 months. Then, from September to December of last year, the Fed cut rates three times, lowering its benchmark rate by a full percentage point.

Those reductions began nudging certificate of deposit (CD) rates lower. But the Fed soon shifted gears, placing its rate policy in neutral. Though the central bank has met three times so far in 2025, it has yet to make any additional moves. As a result, the nation’s top CD rates have flattened out, awaiting a clear signal that more rate cuts are on the horizon.

But in a stable rate environment, some banks and credit unions take advantage of the quiet. By boosting one or more of their CD yields, they can draw attention—and new deposits.

Over the past month, we’ve seen this play out with eight different CDs that raised their rate enough to take a lead in their term. The nationwide rate briefly jumped from 4.50% to 4.65%, and top yields improved in terms ranging from 6 months to 5 years. Seven of those eight certificates are still available today—including the current nationwide leader that’s paying 4.60% APY.

More CD Deals Could Still Pop Up—But It’s Smart to Jump When You See One You Like

The Federal Reserve’s rate-setting committee opens its June meeting today, with a rate announcement scheduled for tomorrow afternoon. But according to the CME Group’s FedWatch Tool, market odds are virtually certain—near 100%—that the Fed will hold rates steady once again. In fact, traders currently place about 85% odds on another pause at the July 29-30 meeting as well.

That suggests the earliest we might see a Fed rate cut is mid-September, meaning CD rates could stay relatively uneventful for another two to three months. Still, just as several CDs raised rates last month to stand out in a crowded field, other banks and credit unions may follow suit in the coming weeks.

But that’s not necessarily a reason to hold out. The Fed is expected to lower rates by possibly a half a percentage point—or maybe even more—before 2025 ends. And as soon as a cut appears imminent, CD rates will pick up the pace in their decline.

So instead of waiting and hoping for a standout CD deal to appear, it’s wise to lock in a strong rate when you see one you like—guaranteeing that high return for months, or even years, to come.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

Important

Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often 5, 10, or even 15 times higher.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

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