The Federal Reserve has cut the federal funds rate three times in 2024, causing deposit account rates to decline. However, you can still lock in competitive CD rates above 4%. The highest CD rate as of July 15, 2025, is 5.5% APY with a $1000 minimum deposit by Gainbridge® on its 5-year CD.

CD rates have fluctuated over the years. From the dot-com bubble in the 2000s to the global financial crisis of 2008, rates fell significantly. The Fed’s policies post-crisis led to low CD rates in the 2010s. However, rates improved between 2015-2018 before dropping again due to the COVID-19 pandemic.

In response to rising inflation, the Fed hiked rates 11 times between 2022-2023, leading to higher CD rates. But in September 2024, the Fed began cutting rates again as inflation stabilized. Despite the decline, CD rates are still historically high.

When opening a CD, consider factors beyond APY like term length, financial institution, account terms, and inflation. Longer-term CDs traditionally offer higher rates, but the current market shows the highest average CD rate for a 12-month term, signaling economic uncertainty. Research various banks, including online options, for the best rates.

Read more at Yahoo Finance: Best CD rates today, July 15, 2025 (Lock in up to 5.5% APY)