Today's CD Rates for July 31, 2025
One of the biggest factors influencing current CD rates is the federal-funds rate. As the Federal Reserve began cutting its benchmark rate toward the end of 2024, CD rates fell in response. However, the July 2025 decision to once again keep the Fed rate steady is likely to result in relatively stable CD interest rates for now.
Another factor that influences CD rates is the business goals of a bank or credit union. A financial institution balances the yield it pays to depositors with the amount of interest it earns from borrowers. For example, if a bank charges its customers 9% APR on a loan, the yield it pays depositors needs to be low enough that there's a profitable difference. If a financial institution pays a yield of 4.65% on a six-month CD, it can attract depositors with a higher yield while still earning a profit on the funds it loans to borrowers.
Term length matters as well. If a financial institution thinks the Federal Reserve will cut interest rates in the near future, it might pay higher yields on short-term CDs to attract customers and when the CD matures, depositors will have to renew at a lower rate when the federal-funds rate heads lower. The next Fed meeting that could result in a rate cut will be in September, so depositors who think a reduction is likely might want to lock in a higher interest rate before then, though as of July 30, the probability is below 50%, according to the CME FedWatch Tool.
On the other hand, in an environment where rates might be expected to rise over time, a financial institution might offer a higher yield on long-term CDs to encourage depositors to agree to keep their money in place for a longer period—even if they miss out on potential interest rate hikes.
How to choose the right CD for your financial goals
As you compare CD rates, consider your financial goals and what you hope to achieve with your money. Here are some considerations:
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