⏰ High CD yields

lock before they go

In partnership with

Retirement Download

Strategies for a successful retirement

CD Yields Remain Attractive—But Choose Carefully Amid Shifting Rates

In a climate of economic uncertainty and shifting Federal Reserve policy, some banks are offering a silver lining to savers: certificates of deposit (CDs) that continue to pay relatively high yields.

Although rates have come down from their 2023 highs, many institutions remain in a holding pattern, reluctant to lower their offerings too aggressively.

According to Morgan Stanley analyst Betsy Graseck, average CD rates have remained fairly steady since the end of March.

Out of 38 banks tracked by Morgan Stanley, 10 have trimmed their highest available CD rates in recent months—but others have moved in the opposite direction, raising their yields and keeping the average relatively flat.

While CD rates have declined about 85 basis points since June 2024, that’s still a smaller drop than the 100 basis-point reduction in the Fed’s benchmark interest rate over the same period.

“We expect CD rates to remain stable in the short term due to ongoing economic and policy uncertainty,” said Graseck. However, she also noted that rates on older CDs will gradually decline as they mature and are replaced by newer, lower-yielding options.

Still-Elevated Yields for Savers Willing to Shop Around

While the days of 5% CDs appear to be over for this rate cycle, some institutions are still offering compelling returns.

The Supply Chain Crisis Is Escalating — But This Tech Startup Keeps Winning

Global supply chain chaos is intensifying. Major retailers warn of holiday shortages, and tech giants are slashing forecasts as parts dry up.

But while others scramble, one smart home innovator is thriving.

Their strategic move to manufacturing outside China has kept production running smoothly — driving 200% year-over-year growth, even as the industry stalls.

This foresight is no accident. The same leadership team that saw the supply chain storm coming has already expanded into over 120 BestBuy locations, with talks underway to add Walmart and Home Depot.

At just $1.90 per share, this resilient tech startup offers rare stability in uncertain times. As investors flee vulnerable companies, this window is closing fast.

Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.

According to Bankrate’s Ted Rossman, the top available one-year CD currently pays an annual percentage yield (APY) of 4.4%. Here are some good names offering such high returns:

  • PonceBankDirect with a rate of 4.50% and a minimum deposit of $500. This comes with a 3-month term with a penalty of 3 months of interest if you withdraw early.

  • Vibrant Credit Union with a rate of 4.50% and a minimum deposit of $5. This comes with a 6 or 13-month term with a penalty of all months of interest if you withdraw early.

  • Communitywide Federal Credit Union with a rate of 4.50% and a minimum deposit of $1,000. This comes with a 6 month term with a penalty that is calculated using a complex method, so it is best to discuss with the bank.

  • ableBanking with a rate of 4.50% and a minimum deposit of $5,000. This comes with a 6 month term with a 3 month interest penalty if you withdraw early.

Some other top names include Sallie Mae, Popular Direct, Presidential Bank, Partners 1st Federal Credit Union, and OMB.

Most of these come with short agreements. If you want to lock for a year, consider names like Greenwood Credit Union, Elements Financial, and Financial Resources Federal Credit Union.

For those looking to lock in longer, America First Credit Union is offering a 60-month CD with a 4.2% APY.

In contrast, national averages fall far below those figures. The typical one-year CD yields just 2%, while five-year options average only 1.71%. This gap underscores the importance of comparison shopping—and being open to lesser-known banks and credit unions.

“It doesn’t matter if the bank isn’t a household name,” Rossman noted. “What matters is that the institution is federally insured—either by the FDIC for banks or the NCUA for credit unions.” In both cases, deposits are protected up to $250,000 per person, per institution, per ownership category.

Match CD Strategies to Financial Goals

As attractive as CD rates may be, savers shouldn’t make decisions based solely on yield.

Locking up money in a CD comes with restrictions, most notably early withdrawal penalties. That means investors must carefully match their CD choices with their financial timelines and liquidity needs.

“Maybe you're saving for a house or college tuition in the next year or two,” Rossman said. “In those cases, a short-term CD can be a smart place to park your funds.” But for longer-term goals, CDs may fall short—especially if inflation outpaces fixed returns.

The Bottom Line: Be Strategic, Not Just Opportunistic

CDs still offer a relatively low-risk way to earn interest on idle cash—particularly when yields are in the 4%+ range. But savers should evaluate their time horizon, cash needs, and inflation expectations before committing.

In today’s environment, picking the right CD could mean balancing safety, accessibility, and return with thoughtful planning.

Resources

How was today's newsletter?

Login or Subscribe to participate in polls.

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.