SEATTLE – Rates on certificates of deposit have decreased 11% over the past 30 days, according to new data.
CD Valet, which connects consumers with the best CD rates and terms nationwide, said the downward movement was likely in anticipation of the Federal Open Market Committee’s (FOMC) .25% reduction in interest rates on Wednesday of this week.
“As expected, financial institutions have been dropping CD rates leading up to and following the Fed’s recent rate cuts,” Mary Grace Roske, head of marketing & communications, said in a statement. “Despite the overall rate reduction, there are opportunistic banks and credit unions that see the situation as a chance to stand out with higher rates and gain market share. Past experience tells us that as the Fed Funds rate falls, people often shift their money from savings and money market funds to CDs, and promotional CDs are a common tool to entice that behavior among savers.”
CD Valet said it based its findings on the 38,500 CD rates it tracks from nearly 5,000 financial institutions.
The Trendlines
According to the company, over the past month it has found:
- 4,264 rates have decreased with an average reduction of 23 basis points (as of 10/28/25). Of these decreases, 12-month CDs saw the highest quantity of rate reductions, with 790 decreases.
- Longer standard terms (particularly 48- and 60-month CDs) currently have the highest single APY offered in the last 12 months. “This trend could indicate that the market is returning to a standard yield curve environment, after experiencing an inverted yield curve for quite some time,” CD Valet said.
