Top CDs Raise Rates Amid Stable Market Amid Stable Rate Environment

Although CD rates have generally decreased in 2025, some CDs have raised their rates to become the best-in-term. Eight CDs raised their APYs over the past month, and seven of those top rates are still available. The Fed is likely months away from cutting rates, keeping the best CD rates mostly in a holding pattern. Some banks and credit unions raise their rates to attract attention and new deposits.

Despite the general decline in CD rates in 2025, a notable trend has emerged where some certificates of deposit (CDs) have increased their annual percentage yields (APYs) to become the best-in-term options. According to recent data, eight CDs have raised their APYs over the past month, with seven of these top rates still available as of June 17, 2025. This development is likely a response to the anticipation of the Federal Reserve's potential rate cuts later this year, which could further decrease CD yields.

The Federal Reserve is widely expected to start cutting interest rates later in 2025, with its next meeting scheduled for this week. This has kept the best CD rates in a holding pattern, as banks and credit unions seek to attract new deposits by offering competitive rates. Some financial institutions have raised their rates to capture attention and attract customers.

Among the standout deals, Newtek Bank offers a 9-month CD with an APY of 4.60%, making it one of the highest rates available on short-term options. Similarly, Rising Bank and United Fidelity Bank offer 6-month CDs with APYs of 4.51% and 4.55%, respectively. Presidential Bank provides a 7-month CD at 4.50% APY, while LendingClub's 14-month CD stands out with a 4.25% APY, requiring a minimum deposit of $500.

While these rates represent attractive opportunities for savers, it is essential to consider the potential impact of the Federal Reserve's rate cuts. As the Fed is expected to decrease interest rates, the elevated returns currently offered by these CDs might not persist for long. Therefore, locking in a high-yield CD now could be a strategic move to secure stronger returns before rates drop further.

CDs offer a dependable way to grow savings with minimal risk, protected by FDIC insurance up to $250,000 per person, per bank. They are particularly suitable for investors who prefer a stable return and do not need immediate access to their funds. However, for those comfortable with market volatility, investing in stocks might provide more long-term earning potential.

In conclusion, while the overall trend of CD rates has been downward in 2025, some institutions have raised their rates to remain competitive. This presents an opportunity for savers to secure higher yields before potential rate cuts by the Federal Reserve. As always, it is crucial to compare rates and terms from different banks and choose the option that best fits your financial goals.

References:
[1] https://www.fool.com/money/banks/articles/top-cd-rates-today-june-16-2025/