The interest rate environment millions of savers and borrowers were expecting this summer hasn’t really developed the way they anticipated. After the Federal Reserve issued three rate cuts in the final four months of 2025 – which followed the same pattern from 2024 – many expected the rate climate to continue to cool into 2026. And while that would have been a boost for borrowers saddled with higher borrowing costs, it was expected to be less favorable for savers who had been accustomed to earning big returns with select savings accounts.

A certificate of deposit (CD) was one such type. Interest rates on this account had risen as high as 6% or 7% for some savers in recent years. But they declined alongside a cooling Federal funds rate and their advantages were predicted to decline further this year. However, is that what’s really happened? With the war with Iran causing inflation to spike and, thus, a pause in the Fed’s interest rate policy, rates there have somewhat stabilized. And now, ahead of a potential Fed rate hike in September – the first raise in three years – the high interest earning opportunities associated with a CD are only growing.

To better understand the value of opening an account now, however, it helps to know how CD rates have actually changed compared to last August. With this information, savers can get a better idea of their timing and more clarity into whether waiting for a higher rate is really worth it.

Start by seeing how much interest you could earn with a CD account now.

How have CD rates changed compared to last August?

CD interest rates vary by lender and term and, yes, they looked different last August, prior to the Fed’s interest rate-cut campaign at the end of the year. But the difference isn’t so stark as to render CDs ineffective now. And, with a rate hike looming for the weeks ahead, now could actually be a smart time to shop around to see which offers you qualify for. 

For context, here’s where CD rates stood on August 12, 2025:

• 3-month CD at 4.30%
• 6-month CD at 4.45%
• 9-month CD at 4.30%
• 1-year CD at 4.40%
• 18-month CD at 4.16%
• 2-year CD at 4.10%
• 3-year CD at 4.10%
• 5-year CD at 4.15%

And here’s what these terms and rates look like one year later:

• 3-month CD at 3.95%
• 6-month CD at 4.15%
• 9-month CD at 4.10%
• 1-year CD at 4.40%
• 18-month CD at 4.35%
• 2-year CD at 4.30%
• 3-year CD at 4.50%
• 5-year CD at 4.35%

Comparing these eight terms year over year, rates are lower than they were for three terms, the same as they were for the 1-year CD and they’re higher for all of the long-term options. In other words, a CD account is still a viable tool for savers now and, if they elect to open an account that matures in 18 months or longer, they’ll actually earn more than they would have if they opened the same account last year. 

Remember, too, that banks don’t have to actually wait for the Federal Reserve to issue a rate hike to adjust their offers to savers upward. So, as that hike grows in likelihood, don’t be surprised to see rate offers move up, too. By shopping around now, then, you can establish a baseline to compare against and, ultimately, find an account, rate and term that works for you.

Shop for high-rate CD accounts online here.

The bottom line

Despite changes in the rate climate that may have indicated otherwise, average CD rates have remained resilient compared to where they sat last August. While some short-term options have declined, others have remained where they were while others have actually increased – all ahead of a potential Fed rate hike this September that could soon cause them to rise again. Don’t discount the advantages this unique savings vehicle offers, then, as it remains a potent tool for savers looking to both protect their principal and grow their interest in today’s uncertain economic landscape.