Northern Bank Direct Offers 4.50% CD Rate Amid Fed Rate Pause

Current certificate of deposit (CD) rates offer investors the chance to earn up to 4.50% annual percentage yield (APY), making now an opportune moment to lock in favorable returns. As of Aug. 11, 2025, Northern Bank Direct provides the highest CD rate at 4.50% for a six-month term. These rates reflect a stabilization in the market after the Federal Reserve cut rates throughout 2024, with the Fed pausing further adjustments in early 2025, at least temporarily [1].

Despite the potential for more rate cuts—experts anticipate at least one or two more this year—investors are advised to act now to secure these elevated rates [1]. The Federal Open Markets Committee (FOMC) most recently left the fed funds rate unchanged at 4.25%-4.50% during its July 29–30 meeting, with the next decision due on Sept. 16–17 [1]. These policy decisions directly influence average CD rates, and investors should monitor them closely to plan for future changes.

Major banks such as Chase, PNC, and U.S. Bank typically offer lower CD APYs compared to smaller regional or online institutions. These large banks focus on more profitable products like loans and credit cards, often requiring customers to maintain additional accounts or meet higher minimum deposits to access competitive CD rates [1]. In contrast, online banks and fintech companies frequently provide higher APYs due to lower overhead costs and a strategy of using attractive rates to gain market share [1].

Investors can also consider structuring their CD investments through a CD ladder, which allows for a balance between liquidity and yield by spreading funds across CDs with varying maturity dates [1]. Additionally, a variety of CD types—including bump-up, callable, and jumbo CDs—offer flexibility depending on an investor’s financial goals and risk tolerance [1].

CD rates remain close to their recent highs following a rate hiking cycle from 2022 to 2023, which pushed yields to two-decade levels. Although rates declined in 2024 amid falling inflation, they have not dropped significantly and still offer attractive returns for both short-term and long-term savings strategies [1].

Sources:

[1] title: Earn up to 4.50% APY. Here are the best CD rates today, Aug. 11, 2025

url: https://fortune.com/article/cd-rates-8-11-25/