Savers Rewarded: Ivy Bank’s Short-Term CDs Beat the Market

Ivy Bank Announces New CD Rates for 2025, Unrelated to Crypto Markets

Ivy Bank has introduced new certificate of deposit (CD) rates for 2025, offering competitive returns for investors seeking low-risk, fixed-income savings vehicles. These rates remain unaffected by the volatility of the cryptocurrency market, focusing instead on stabilizing returns amid the Federal Reserve’s current policy stance. As of August 19, 2025, Ivy Bank offers CD rates ranging from 2.60% for five-year terms to 4.35% for three-month terms.

The Federal Reserve’s benchmark interest rate has remained unchanged in 2025, maintaining the fed funds rate between 4.25% and 4.50% since late 2024. This stability has allowed banks like Ivy Bank to maintain high CD rates for both short- and long-term terms. The recent rate cuts in 2024 had initially caused CD yields to decline from record highs, but the Fed’s current pause on further adjustments has prevented a broader decline.

Ivy Bank’s offerings include six standard CD terms: three months, six months, one year, two years, three years, and five years. The minimum deposit requirement is $1,000, and the accounts do not allow additional deposits after opening. Automatic renewal is enabled with a 10-day grace period. Early withdrawal penalties vary by term, with penalties reaching as high as 270 days of interest for the five-year CD.

Comparing Ivy Bank’s rates to those of other institutions, the bank’s three-month and six-month CDs stand out, offering 4.35% and 4.25% APY, respectively. These rates significantly outperform those of some competitors, including Discover and Northern Bank Direct, particularly for shorter-term CDs. However, longer-term options like the five-year CD yield lower returns, with a 2.60% APY, which is below the average for many competitors.

Investors looking to maximize returns through strategic planning may consider building a high-yield CD ladder with Ivy Bank’s short-term CDs. For instance, a diversified portfolio of three-month, six-month, and one-year CDs can provide liquidity while still locking in relatively high rates. This strategy can be particularly beneficial in a low-rate environment where long-term CDs offer diminished returns.

While Ivy Bank does not offer specialty CDs such as bump-up or jumbo options, its straightforward structure makes it well-suited for those prioritizing simplicity and high yields in the short term. Investors who require more flexibility or additional features may need to consider other banks, but Ivy Bank’s competitive short-term rates present a compelling option for those focused on capital preservation and predictable returns.

FDIC insurance covers deposits up to $250,000 per account holder at Ivy Bank, adding an additional layer of security for savers. This protection ensures that investors can confidently commit funds to CD terms without concerns about loss due to bank insolvency.

The broader market for CDs remains robust, with many online banks offering rates above 4.00% across various terms. Ivy Bank’s performance in the short-end of the CD spectrum aligns with the general trend of higher short-term yields, while its longer-term offerings reflect a more cautious approach. This reflects the typical behavior of CD rates, which often see shorter-term products outpacing longer-term counterparts in a low-interest-rate environment.

For investors evaluating CD options, it is crucial to consider not only the APY but also factors such as minimum deposits, withdrawal penalties, and the availability of FDIC insurance. Ivy Bank’s offerings meet most of these criteria, making them a viable choice for those seeking low-risk, high-yield savings vehicles in the current market climate.

Source:

[1] Ivy Bank CD Rates 2025: What you need to know (https://fortune.com/article/ivy-bank-cd-rates/)

[2] Best CD rates today, Aug. 18, 2025 (https://fortune.com/article/cd-rates-8-18-25/)

[3] Best CD rates today, August 17, 2025 (lock in up to 5.5% APY) (https://finance.yahoo.com/personal-finance/banking/article/best-cd-rates-today-sunday-august-17-2025-100011208.html)

[4] Best CD Rates for August 18, 2025: Up to 4.60% (https://www.nerdwallet.com/best/banking/cd-rates)

[5] Best savings account interest rates, Aug. 18, 2025 (https://fortune.com/article/best-savings-account-rates-8-18-2025/)

[6] 10 Best High-Yield Savings Accounts Of August 2025 (https://www.forbes.com/advisor/banking/savings/best-high-yield-savings-accounts/)