CD Rates Soar to 4.60% as Fed Tightens Policy

On April 28, 2025, the highest annual percentage yield (APY) for certificates of deposit (CDs) reached up to 4.50%. This significant rate reflects the current economic environment, where the Federal Reserve has maintained its target rate between 4.25% and 4.50%. The Fed's recent statement indicated progress in reducing inflation towards its 2% target, although it remains elevated. Consequently, the core inflation projection for 2025 was increased from 2.50% to 2.80%.

Several financial institutions are offering competitive CD rates. PiBank and Neighbors Bank both provide an APY of 4.60%, although Neighbors Bank has temporarily halted new customer sign-ups. FitnessBank offers 4.55% APY, but this rate requires the use of their mobile app and meeting specific daily step goals. Peak Bank provides 4.54% APY, with a minimum deposit of $100. Climate First Bank offers 4.46% APY, but this rate is only available for new money and requires a direct deposit. BrioDirect, a division of Webster Bank, offers 4.45% APY with a $5,000 minimum deposit.

Other notable rates include Total Bank at 4.41% APY with a $2,500 minimum deposit, LendingClub at 4.40% APY with no minimum deposit but requiring a monthly direct deposit of at least $250, and My Banking Direct at 4.40% APY with a $1 minimum deposit. First Foundation Bank offers 4.40% APY with a $1,000 minimum deposit, while Brilliant Bank provides 4.40% APY with a $2,000 minimum deposit. Vio Bank offers 4.36% APY with a $100 minimum deposit, and Primis Bank provides 4.35% APY with a $1 minimum deposit.

These rates highlight the competitive landscape for CD offerings, with various institutions vying to attract depositors with attractive yields. However, it is essential to consider the specific terms and conditions of each CD, including minimum deposit requirements, early withdrawal penalties, and any additional features or benefits offered by the institution. As the economic environment continues to evolve, these rates may change, and depositors should stay informed about the latest offerings to make the most of their savings.