U.S. CD Rates Hit 4.45% APY as Fed Holds Rates Amid Policy Uncertainty

Banks and credit unions across the United States are offering certificate of deposit (CD) rates as high as 4.45% annual percentage yield (APY), making it an attractive time for savers to lock in returns for the short or long term. ETRADE, Bread Savings, and My eBanc are among the institutions currently leading the market, with top-tier rates on six- and 12-month CDs. ETRADE’s 4.45% APY on its six-month CD stands out for having no minimum deposit requirement, broadening accessibility for a wider range of investors [1].

The Federal Reserve has played a central role in shaping current CD rates. After a series of rate cuts in 2024, the Fed paused its adjustments in early 2025, which has contributed to the stabilization of CD yields [1]. The Federal Open Market Committee (FOMC) left the federal funds rate unchanged during its July meeting and plans to hold its next meeting on Sept. 16-17. Experts suggest that the Fed may consider cuts later in the year, which could lead to a decline in CD rates in the near future [1].

Historically, CD rates have closely followed the Fed’s monetary policy. In the early 2020s, rates were below 1.00%, but the Fed’s aggressive rate hikes between 2022 and 2023—11 in total—pushed them to multi-decade highs. As of December 2024, the fed funds rate stood at 4.25%-4.50%, a level that has helped keep CD rates near their recent peaks [1].

Despite the strong rates available, traditional banks like Chase, PNC, and U.S. Bank tend to offer lower CD yields compared to online and regional banks. These larger institutions often prioritize revenue from loans and credit card products over CDs, which typically yield less profit for the bank [1]. Savers are advised to compare rates across a variety of banks and consider online institutions, which generally offer higher APYs due to lower operational costs and a greater focus on attracting deposits.

For those interested in maximizing returns, CD laddering is a popular strategy. By spreading investments across CDs with staggered maturity dates, investors can maintain liquidity while taking advantage of higher long-term rates. Additionally, online banks and fintechs often provide more competitive terms, including no-penalty CDs, jumbo CDs with higher APYs, and bump-up CDs that allow rate adjustments if market conditions improve [1].

Savers should also be mindful of key factors such as minimum deposit requirements, early withdrawal penalties, and deposit insurance. The Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA) provide coverage for eligible accounts, offering additional security to investors.

With rates expected to remain stable in the short term and potential for a decline later this year, now may be an optimal time for investors to lock in high returns on CDs. As the market continues to evolve, staying informed about the Fed’s policy decisions and comparing rates across institutions can help investors make strategic choices aligned with their financial goals [1].

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[1] Fortune – [https://fortune.com/article/cd-rates-8-18-25/](https://fortune.com/article/cd-rates-8-18-25/)