CD Valet Shares Analysis on Q1 CD Rates, Explores Impact of Recent FOMC Meeting

Approximately 33% of CD rate changes were increases during Q1 2025 

CD Valet is a digital marketplace that connects consumers with the best CD rates and terms nationwide, helping community financial institutions effectively attract new deposits. The company today shared that from January to March 2025, one in three CD rate changes was an increase, despite the federal funds rate remaining unchanged after two Federal Open Market Committee (FOMC) meetings. This data is especially timely, as the FOMC met again earlier this week, with rates remaining steady.

In its quarterly Ratewatcher report, CD Valet analyzes its digital marketplace of over 30,000 retail CD rates, representing over 4,000 banks and credit unions, to uncover patterns and trends. As of April 22, there were 3,412 CD rate APY increases so far this year, averaging 37 basis points. There were 6,894 CD rate APY decreases, averaging 24 basis points.

The CD yield curve remains inverted; CD Valet data showed that 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 4/15/2025)

“Understanding what peers across the country are doing can help banks and credit unions make smarter, more informed decisions regarding their deposit pricing,” said Mary Grace Roske, Head of Marketing at CD Valet. “As consumers increasingly seek reliable, dependable returns in this uncertain climate, CDs have become a go-to option for safe, predictable returns. Plus, as a record number of CDs are set to expire this year, the market has become increasingly competitive. By strategically pricing and marketing compelling CD offers, financial institutions of all sizes can more effectively attract new deposits and drive growth.”