Newtek Bank Offers 4.60% APY on 9-Month CD Amid Rate Stability

As of June 18, 2025, investors have the opportunity to secure attractive returns on certificates of deposit (CDs), with the highest available annual percentage yield (APY) reaching 4.60%. This rate is offered by Newtek Bank for a nine-month term, providing a solid option for those looking to lock in higher rates for the near future. The current landscape for CD rates reflects a stabilization after the Federal Reserve's rate cuts in 2024, which brought average CD yields down from their recent peaks.

The Federal Reserve's decision to hold interest rates steady in 2025 has contributed to the stability of CD rates. However, there is a possibility that rates may begin to decrease later this year, making it crucial for investors to act promptly to secure the best available rates. The Federal Open Market Committee (FOMC) has maintained the fed funds rate unchanged in its recent meetings, indicating that CD rates are likely to remain stable for the time being. The last rate cut in December 2024 fixed the fed funds rate at 4.25%-4.50%, a move aimed at supporting the economy as inflation began to subside.

Historically, CD rates have seen significant fluctuations. In the early 1980s, rates surged into double digits, but by 2019, the APY for a 5-year CD had only slightly exceeded 3%. Throughout the early 2020s, top rates typically remained below 1% APY. However, in recent years, rates have seen a significant increase, with the best offerings surpassing 5% APY in 2024. In 2025, rates are beginning to stabilize and drop below this threshold, providing a window of opportunity for investors to secure attractive returns.

When considering a CD investment, it is important to balance the highest available rate with your financial goals and timeline. Key factors to consider include term length, APY, minimum deposit requirements, penalties for early withdrawal, and deposit insurance. Online banks and fintech companies generally offer more competitive rates than big national banks, as they operate with lower overhead costs and attract customers with higher APYs on deposit accounts.

For those who are hesitant to commit funds for extended periods, a CD ladder strategy can be beneficial. This approach involves diversifying savings across CDs with different maturity dates, allowing for both short-term accessibility and higher long-term interest rates. By reinvesting matured CDs into new ones, investors can maintain annual access to their funds while benefiting from accrued interest.

In summary, the current CD rate environment offers investors the chance to secure attractive returns, with the highest APY reaching 4.60%. The stability of CD rates in 2025, coupled with the potential for future rate decreases, makes it an opportune time to lock in higher rates. By considering key factors and exploring competitive offerings from online banks, investors can make well-informed decisions to maximize their CD investments.