After a long stretch of strong certificate of deposit (CD) yields, a shift may be in the air.
Banks including Marcus, Brilliant Bank, T Bank, Bread Savings, and others have recently lowered their CD rates. And the Federal Reserve is expected to cut the federal funds rate later this year, which would likely mean further CD rate decreases.
Here’s what we know about the future of CD rates, and why now might be the time to lock in a high APY.
Rate cuts could be on the horizon
While the Federal Reserve has yet to make a move, it has signaled that it will likely reduce rates later this year. Most analysts aren’t expecting the Fed to announce rate cuts at its meeting next week, but many see the first cut happening as early as June.
Our Picks for the Best High-Yield Savings Accounts of 2025
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SoFi Checking and Savings Member FDIC. APY up to 3.80%²
Rate info
Member FDIC.
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up to 3.80%²
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$0 |
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American Express® High Yield Savings Account Member FDIC. APY 3.70%
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Member FDIC.
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3.70%
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$0 |
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Barclays Tiered Savings Member FDIC. APY 4.10%
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Member FDIC.
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4.10%
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$0 |
Disclaimers
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
CD rates tend to follow the federal funds rate pretty closely. And even if the Fed hasn’t acted yet, banks may already be adjusting their rates in anticipation.
Now may be the time to lock in a high APY
If CDs make sense for your financial plan, now looks like a good time to open one. Rates are already falling at some banks, and more cuts may come this summer.
CDs are great at a time like this, because — unlike high-yield savings accounts (HYSAs) or the stock market — they give you a guaranteed return on your money for an agreed-upon length of time. They’re also insured by the FDIC up to $250,000. And they encourage discipline in users — if you cash out your CD before the maturity date, you could be subject to early withdrawal penalties.
With that in mind, you’ll want to spend some time figuring out what term works best for you. Right now, shorter-term CDs (with terms of less than a year) are offering slightly higher rates, but longer-term CDs may be a smarter play given the looming rate cuts.
If you’re not comfortable locking your money away — for any amount of time — then look into a high-yield savings account instead. HYSA rates are variable and can change at any time, but they’re a good way to earn a competitive return on your cash without losing access. Check out this list of our favorites to open an account and get started today.
Don’t wait — secure your money in a CD today
With potential rate cuts on the horizon, we may be at the tail end of some of the best CD rates we’ve seen in some time.