How have CD rates changed compared to last August? Here's what savers may not know.
Summary
Certificate of deposit (CD) interest rates have changed since last August but remain competitive, especially for longer-term CDs. While some short-term rates have fallen, others have stayed the same or increased, and rates may rise soon if the Federal Reserve hikes interest rates in September.Key Facts
- CD rates for short terms like 3 and 6 months are slightly lower than last August.
- The 1-year CD rate stayed the same at 4.40%.
- Longer-term CD rates (18 months or more) have increased compared to last year.
- The Federal Reserve cut rates three times in late 2025, which some expected to lower CD rates more.
- Inflation caused by the Iran war slowed the Federal Reserve’s rate changes.
- A possible rate hike in September 2026 could push bank CD rates higher.
- Banks can raise CD rates anytime, not only when the Federal Reserve acts.
- CDs remain a useful savings tool for protecting money and earning interest in today’s economy.
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