CD Valet is a digital marketplace that connects consumers with the best CD rates and terms nationwide, helping community financial institutions effectively attract new deposits. The company today shared that from July 1-July 31, 2025, the 12-month CD saw the highest average increase at 41 (median increase was 20) basis points. The 12-month CD also had the highest average rate at 4.80% APY, when looking at the top 25 rates for each maturity.
More CD Rates Falling Than Rising in July
In its monthly Ratewatcher report, CD Valet analyzes its digital marketplace of over 30,000 retail CD rates, representing over 4,000 banks and credit unions, to uncover patterns and trends. As of July 31, there were 584 rate APY increases reported during the month, averaging 31 basis points. Of these increases, 57% impacted CDs with terms greater than one year, with a 24-month term being the most common. There were 1,019 CD rate APY decreases in July, averaging 24 basis points.
Other points of note from the July analysis include:
- Approximately 36% of CD rate changes were increases. This reflects a reduction in rate hikes from the previous month; in June, 42% of CD rate changes were an increase.
- This is likely because even though the Federal Funds rate remained unchanged during July’s Federal Open Market Committee (FOMC) meeting, many expect rate cuts to materialize this fall.
- The average credit union CD rate APY was approximately 16% higher than average bank CD rate APY.
- Of the institutions that increased CD rates, approximately 65% were credit unions while approximately 35% were banks.
12-Month CD Getting Consumer Attention
“With strong consumer interest and competitive momentum in the deposit space, financial institutions should consider optimizing their 12-month CD offerings – both in terms of rate and visibility,” said Mary Grace Roske, Head of Marketing at CD Valet. “The 12-month CD is well-positioned to attract rate-sensitive customers seeking short-term security, making it an effective tool for deposit growth. When combined with digital onboarding and ongoing engagement, it can also serve as a gateway to deeper, long-term customer relationships.”
