WalletHub's survey of over 950 CDs from 172 institutions shows Newtek Bank at 4.30% APY for a 13-month term, United Fidelity Bank at 4.25% for six months, and a Southland Credit Union 9-month CD at 9.00% APY for eligible members. Fortune reported top rates reaching 4.50% APY on August 12, while Forbes Advisor cited rates as high as 4.94% on August 10, underscoring the dispersion across tracking methodologies.
Historical context frames the current window. The Federal Reserve held its benchmark rate at 4.25%–4.50% through the summer after 11 hikes between March 2022 and July 2023, then reversed course with cuts starting in September 2024 and three reductions in 2025. Market futures indicate a 70% probability of another cut at the September 2026 FOMC meeting, which could push 1-year CD yields toward 3.75%–3.90% APY.
Depositors should verify FDIC insurance for banks or NCUA coverage for credit unions before transferring funds, and review account terms, minimum deposit obligations, and inflation risk. With the yield curve inverted at the short end and a potential rate cut looming, the 16-month lock at 4.30% represents a specific bet on the pace of monetary easing.
Will the September FOMC decision compress the short-end premium fast enough to make today's 16-month rate look generous in retrospect, or will sticky inflation keep the window open for another cycle?
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
