Unlocking Higher CD Rates Despite Federal Reserve's Interest Rate Pause

Essential Insights

• Following aggressive rate hikes in 2022 and 2023, the Federal Reserve has paused interest rate changes in 2025.
• Although future rate cuts are anticipated, trade policy uncertainties have led the Fed to adopt a cautious, wait-and-see approach.
• Surprisingly, the highest nationwide CD rate recently rose to 4.65%, up from 4.50% last month, despite the Fed’s stable benchmark rate.
• Banks and credit unions are leveraging competitive CD rates as marketing tools to attract new customers during this period of rate stability.

The Federal Reserve's Steady Stance on Interest Rates

From early 2022 through mid-2023, the Federal Reserve implemented a series of sharp interest rate hikes to combat inflation, pushing rates to levels not seen in over two decades. After a brief series of rate cuts late last year totaling one percentage point, the Fed has maintained a consistent pause in 2025, prioritizing inflation control and economic stability.

Recent economic turmoil, particularly stemming from fluctuating trade policies, has contributed to uncertainty around inflation and labor markets. This has encouraged the Fed to remain patient, closely monitoring incoming data before making further moves. Market indicators currently reflect a strong consensus that rates will remain unchanged through at least July, with potential cuts not expected before September.

Rising CD Rates Amid Rate Stability

Typically, CD rates track the Federal Reserve’s benchmark rate, rising and falling accordingly. When the Fed’s rates peaked in 2023, CD rates surged, then adjusted downward as the benchmark rate eased. However, following a period of steady rates, the top CD rate unexpectedly increased from 4.50% to 4.65%.

This boost was introduced by Technology Credit Union, which launched a new 6-month CD at the higher rate. This move not only captures attention in a competitive savings market but also demonstrates how financial institutions differentiate their offerings to attract savers despite a lack of Fed rate changes.

What Savers Should Anticipate Going Forward

While the Federal Reserve’s interest rate pause is expected to continue for several months, the economic landscape remains dynamic. Savers should remain vigilant for potential new high-yield CD offerings as banks respond to market conditions. Since some top rates are offered for limited periods or until deposit goals are met, timing and comparison shopping are essential to maximize returns.

For those considering whether to invest in high-yield savings accounts or CDs, the current environment favors locking in competitive CD rates when available, especially with rates like 4.65% emerging despite the Fed’s steady stance.

Daily Updates on the Best Deposit Rates

We update rankings every business day to help you find the most lucrative deposit options, including:

• Best 3-Month to 5-Year CD Rates
• Top High-Yield Savings Accounts
• Leading Money Market Accounts

Understanding Top Rates vs. National Averages

The "top rates" highlighted are the highest nationally accessible rates identified through rigorous daily research across hundreds of banks and credit unions. These top-tier rates far exceed national averages, which are often lowered by large institutions offering minimal interest.

Our Methodology for Curating the Best Rates

Each business day, we analyze rate data from over 200 federally insured banks and credit unions that serve customers nationwide. Eligible accounts require a maximum initial deposit of $25,000 and a minimum deposit threshold no lower than $5,000. Banks must operate in at least 40 states, while credit unions with high donation requirements for membership are excluded to ensure accessibility. This stringent process ensures we present only the most competitive and broadly available savings products.

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