Home / Business and Economy / CD Rates Surge, Offering Competitive Returns Amid Economic Shifts
CD Rates Surge, Offering Competitive Returns Amid Economic Shifts
12 Nov
Summary
- Best CDs pay over 4% APY, significantly higher than savings accounts
- Highest CD rate is 4.25% APY on a 2-year CD from United Fidelity Bank
- CD rates have fluctuated over the past decade, reflecting economic conditions
As of November 12, 2025, deposit account rates have been on the rise, providing consumers with an opportunity to lock in competitive returns on certificates of deposit (CDs). The good news is that the best CDs currently pay rates above 4% annual percentage yield (APY), a significant improvement from the low-rate environment of the recent past.
The article notes that CDs today typically offer rates significantly higher than traditional savings accounts. The highest CD rate available is 4.25% APY, which is offered by United Fidelity Bank on its 2-year CD. This rate is significantly higher than the average one-year CD rate of around 1% APY seen in the aftermath of the 2008 financial crisis.
The article delves into the historical context, explaining that CD rates have fluctuated over the past decade, reflecting the broader economic conditions. The early 2000s saw relatively higher CD rates, but they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, the average one-year CD paid around 1% APY, with five-year CDs at less than 2% APY.
The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. However, the situation reversed following the COVID-19 pandemic, as inflation began to spiral out of control. This prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, leading to higher rates on loans and higher APYs on savings products, including CDs.
