ATLANTA—There are stark differences” in CD pricing across asset size segments, with institutions under $500 million tending to offer the most competitive rates, particularly for 12-month CDs, according to a new CD yield curve analysis.
The analysis was conducted by CD Valet, a digital marketplace that connects consumers with the best CD rates and terms nationwide. The company said it tracks 38,500 CD rates from nearly 5,000 financial institutions across five asset categories.
“Our recent CD yield curve analysis confirmed that, as expected, smaller banks and credit unions tend to offer the highest rates, both to drive deposits and reward customers,” Mary Grace Roske, head of marketing and communications, said in a statement. “In fact, as asset size increases, overall rate competitiveness tends to decline – especially for institutions surpassing the $10 billion mark. For savers, this is a reminder that better yields often lie beyond the biggest bank names, while for financial institutions, it underscores how pricing strategy remains a powerful tool for growth and loyalty.”
The Key Findings
According to CD Valet, key findings in the report include:
- Smaller institutions lead on rates. For 12-month CDs, the median APY from institutions under $500 million is 3.25%, while the median APY from institutions with $50 billion or more is just 2.03%, a striking difference of 122 basis points. That’s a 60% higher yield from the smallest institutions compared to the largest, even at the median rate.
- Mid-size institutions demonstrate rate discipline. Institutions ($500M–$10B) tend to offer strong, consistent CD rates. They have fewer low-APY outliers, which lifts their overall curve. The smaller gap between top 1% and top 10% rates from those institutions also suggests tighter competition and more consistent pricing across the board, CD Valet said.
- Larger institutions lag in rate competitiveness. Institutions over $50 billion show significantly lower top and median APYs across nearly all CD terms, with median APYs dipping below 1.20% for longer terms, such as 36–60 months. “This trend suggests that larger institutions may rely less on rate-based deposit acquisition strategies and more on brand reach or existing customer bases,” CD Valet said. “Their access to wholesale funds, corporate accounts and other sources means they don’t have to depend on retail CDs as much as smaller institutions do.”
Smarter Pricing Decisions
“While large banks rely on brand familiarity and convenience to retain deposits, those advantages don’t necessarily translate into better returns for savers – with their money often being left on the table,” Roske said in a statement. “By analyzing the benchmark data from trusted tools, smaller institutions can make smarter, more effective pricing decisions – decisions that benefit both customers and their bottom line. For consumers, it highlights the importance of not defaulting to the big-name banks and instead to shop around for better rates.”
