Northern Bank Direct Offers 4.50% APY on 6-Month CD as Rates Stabilize in 2025

Currently, the best CD rates available as of Aug. 13, 2025, offer up to 4.50% annual percentage yield (APY). This high rate is currently being provided by Northern Bank Direct on its six-month CD. The opportunity to lock in such a rate remains open, and investors who act now can benefit from favorable returns over the coming years, depending on their selected term length [1].

Federal Reserve policy plays a significant role in determining CD rates. In 2024, the Fed cut interest rates three times, which led to a decline in average CD yields from their recent record highs. However, in 2025, CD rates have stabilized after the Fed held the fed funds rate unchanged at 4.25%-4.50% following the December 2024 cut. The most recent FOMC meeting, held July 29–30, did not result in any rate changes, and the next meeting is scheduled for Sept. 16–17 [1]. Market observers are monitoring these developments closely, as any future rate reductions could impact CD yields.

Historically, CD rates have fluctuated significantly. In the early 1980s, rates surged into double digits, while by 2019, a 5-year CD had an APY slightly above 3.00%. In the early 2020s, top rates remained below 1.00% APY, but a sharp rise occurred in 2024 as the Fed raised rates in response to high inflation. These elevated rates have now begun to stabilize and decline in 2025 [1].

Investors seeking competitive CD rates often find better options at online banks and regional institutions rather than major national banks. Large banks such as Chase, PNC, and U.S. Bank tend to focus on loans and credit cards, resulting in less competitive CD rates. Online institutions, on the other hand, often offer higher APYs due to lower overhead costs and a strategy centered on attracting deposits [1].

A CD ladder strategy can also be an effective way to manage risk and maintain flexibility. By spreading investments across CDs with varying maturity dates, investors can reinvest maturing funds while maintaining access to portions of their capital annually. For example, a $3,000 investment spread across 1-, 2-, and 3-year CDs allows for periodic reinvestment and liquidity [1].

When evaluating CD rates, investors should consider factors such as term length, minimum deposit requirements, early withdrawal penalties, and deposit insurance. Higher APYs are typically associated with longer-term CDs, and ensuring that the institution is FDIC or NCUA insured is critical for protecting savings [1].

Overall, the current environment offers an opportunity for investors to secure attractive returns through CDs. With rates stabilizing and the potential for further Fed policy shifts, locking in favorable terms now can provide a solid foundation for future financial goals [1].

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Earn up to 4.50% APY with the best CD rates available today, Aug. 13, 2025

https://fortune.com/article/cd-rates-8-13-25/