Federal Reserve Action Causes Decline in CD Rates, Finds CD Valet Data

SEATTLE, Oct. 30, 2025 /PRNewswire/ -- 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 revealed that of the rates CD Valet tracks, 11% decreased over the past 30 days (data as of 10/28/25). This movement was likely in anticipation of the Federal Open Market Committee's (FOMC) .25% reduction in interest rates, announced yesterday.

"As expected, financial institutions have been dropping CD rates leading up to and following the Fed's recent rate cuts," said Mary Grace Roske, Head of Marketing & Communications for CD Valet. "Despite the overall rate reduction, there are opportunistic banks and credit unions that see the situation as a chance to stand out with higher rates and gain market share. Past experience tells us that as the Fed Funds rate falls, people often shift their money from savings and money market funds to CDs, and promotional CDs are a common tool to entice that behavior among savers."

CD Valet offers the most comprehensive source of CD rates available today, with over 38,500 CD rates tracked from nearly 5,000 financial institutions. Over the past month, CD Valet found that 4,264 rates have decreased with an average reduction of 23 basis points (as of 10/28/25). Of these decreases, 12-month CDs saw the highest quantity of rate reductions, with 790 decreases.

CD Valet also found that longer standard terms (particularly 48- and 60-month CDs) currently have the highest single APY offered in the last 12 months. This trend could indicate that the market is returning to a standard yield curve environment, after experiencing an inverted yield curve for quite some time.

"Keeping a pulse on rate trends – understanding how banks and credit unions across the country are adjusting their deposit pricing – allows financial institutions to stay competitive and drive deposits while enabling savers to make their money go farther," said Roske.

About CD Valet 

CD Valet is a digital marketplace that connects consumers with top CD rates from banks and credit unions nationwide and enables financial institutions to efficiently and cost-effectively attract retail deposits. With CD Valet, banks and credit unions are empowered to digitally compete with the largest financial institutions, while consumers gain greater visibility and access to better rates. CD Valet offers over 38,500 CD rates, interest calculators and comparison tools for consumers and financial institutions can use its full suite of advertising, analytics, and account opening tools to support deposit acquisition. Visit www.cdvalet.com for more information and check out CD Valet's Best CD Rates by State Map to maximize earnings on savings. 

SOURCE CD Valet