Declining CD rates due to Federal Reserve cuts

From Yahoo Finance: 2025-05-15 06:00:00

Looking for the best CD rates? Check out which banks are offering competitive rates. The highest rate currently stands at 4.40% APY from Marcus by Goldman Sachs on a 14-month CD with a $500 minimum deposit. CD rates have been on the decline since the Federal Reserve began cutting its target rate.

The Federal Reserve has cut its target rate in light of slowing inflation and an improved economic outlook. While the federal funds rate doesn’t directly impact deposit interest rates, they are correlated. Financial institutions tend to lower rates when the Fed does, so now may be a good time to lock in a CD rate.

Considering opening a CD account? Research rates online, choose an account that meets your needs, gather necessary documents, complete the application, and fund the account. Make sure to compare rates, terms, and fees before committing to a CD to ensure it aligns with your financial goals.

Read more: Best CD rates today, May 15, 2025 (lock in up to 4.40% APY)