SEATTLE–Even though the Fed funds rate remained unchanged, approximately one-third of CD rate changes that took place during the first quarter of this year were to increase rates, according to an analysis by CD Valet
CD Valet, a digital marketplace that connects consumers with the best CD rates and terms nationally, said it analyzed more than 30,000 retail CD rates, representing over 4,000 banks and credit unions.
“As of April 22, there were 3,412 CD rate APY increases so far this year, averaging 37 basis points,” the company said. “There were 6,894 CD rate APY decreases, averaging 24 basis points.”
Inverted Yield Curve
Noting the CD yield curve remains inverted; CD Valet said its data show the top 10% of 12-month CD rates are 4.15% APY or higher, with some institutions offering up to 5.11% APY.
Meanwhile, longer-term rates such as 60-month CDs are 3.80% APY, with the top rate reaching up to 4.50% APY, as of April 15, it added.
Mary Grace Roske, head of marketing at CD Valet, noted that a record number of CDs are set to expire this year, making the market increasingly competitive.
