CD Rate Trends August 2026: CD Rates Rise, May Rise Even More

CD rates are moving higher entering August 2026. With inflation still above target, economic growth holding up and Fed officials holding the target rate at 3.75 percent, banks and credit unions are continuing to compete for deposits. Even if the FOMC stays put at future meetings, CD rates may still rise or remain unchanged.

Are CD Rates Going Up Right Now?

Yes. CD rates are going up right now. Far more institutions raised rates than lowered them, while CD Valet’s overall median APY and the number of rates at or above 4.00 percent also moved higher.

During the past week, 539 existing rates increased and 105 decreased. That means nearly 84 percent of all changed rates moved higher, and increases outnumbered decreases by more than five to one.

The latest results continue a strengthening upward trend. In the May reporting cycle, covering April 1 through April 30, approximately 54 percent of CD rate changes were increases and 46 percent were decreases. In the June reporting cycle, covering May 1 through May 31, more than two-thirds of all changes were increases. That share reached nearly 84 percent in the latest weekly update entering August.

Other measures also point to an upward trend. CD Valet’s overall median rose to 3.25 percent, an increase of 1 basis point over the past week, 5 basis points over 30 days, and 10 basis points over the past six months.

The number of rates offering at least 4.00% APY also climbed to 2,526, up 148 from the previous week (as of 7/31/26).

“The Federal Reserve’s decision to leave its target rate unchanged is helping keep CD pricing relatively stable,” said John Blizzard, founder of CD Valet. “At the same time, competition for deposits is prompting some banks and credit unions to raise rates modestly, which helps explain why rate increases now substantially outnumber decreases.”

Median rates were 3.50 percent for six-month CDs, 3.25 percent for 12-month CDs, and 3.00 percent for 24-month CDs.

What Happens to CD Rates If The Fed Cuts Rates?

A Federal Reserve rate cut would generally put downward pressure on newly offered CD APYs, although banks, credit unions and CD terms would not necessarily respond at the same speed or by the same amount. Existing fixed-rate CDs would retain their stated APYs until maturity. If the Fed holds rates steady, competition for deposits can still cause some CD rates to rise.

The FOMC voted 9–3 to keep the federal funds target range unchanged at 3.50 percent to 3.75 percent. Cleveland Fed President Beth Hammack, Minneapolis Fed President Neel Kashkari, and Dallas Fed President Lorie Logan dissented, preferring to raise the target range by 25 basis points.

The Federal Reserve considers maximum employment and price stability when setting monetary policy. At its latest meeting, the Federal Open Market Committee said economic activity continued to expand at a solid pace, despite elevated uncertainty partly related to the conflict in the Middle East. The Fed also pointed to strong productivity growth and capital investment, while noting that job gains had kept pace with growth in the workforce and that the unemployment rate had changed little.

Dissenters see inflation as a greater risk than economic weakness and prefer to move rates higher.

Fed Chair Kevin Warsh argued that the central bank should not provide forward guidance on its expectations for rates. So, what do inflation, employment, and economic growth suggest for rates? The key question now is: What happens to CD rates if the Fed raises rates because of inflation?

The next FOMC meeting is scheduled for September 15-16, 2026.

Inflation: Core Price Pressures Eased

The U.S. Bureau of Labor Statistics reported on July 17 that core inflation, which excludes volatile food and energy prices, showed signs of easing in the latest report. The core Consumer Price Index was unchanged in June after rising 0.2 percent in May. Over the previous 12 months, core CPI increased 2.6 percent, down from 2.9 percent in May.

That recent moderation gives the Federal Reserve some evidence that underlying price pressures are cooling. However, core inflation remains above the Fed’s 2 percent inflation goal, and one month of softer data may not be enough to persuade policymakers that inflation is moving sustainably back to target.

Employment: Labor Market Remains Stable

The U.S. Bureau of Labor Statistics reported on July 2 that the unemployment rate was 4.2 percent in June, down slightly from 4.3 percent in May. The number of unemployed people was 7.1 million, and both measures changed little over the month and over the previous year.

The latest Labor Department report on unemployment benefits also points to limited layoffs. Seasonally adjusted initial claims totaled 197,000 for the week ending July 25, an increase of 9,000 from the previous week’s revised level of 188,000. However, the four-week moving average fell by 5,000 to 202,750.

GDP: GDPNow Points To Strong Growth

The Federal Reserve Bank of Atlanta’s GDPNow model estimated real GDP growth at a seasonally adjusted annual rate of 5.0 percent for the third quarter of 2026 as of July 30. This was the model’s first reading for the third quarter.

GDPNow is a “nowcast” that uses incoming economic data to estimate current-quarter growth before official GDP figures are released.

The model’s final estimate for the second quarter of 2026 was 1.5 percent, down from 1.6 percent on July 27. The sharp difference between the final second-quarter estimate and the initial third-quarter estimate suggests a stronger start to the current quarter, although the 5.0 percent reading is likely to change as more economic data become available.

The next GDPNow update is scheduled for August 3, 2026.

Bottom Line: Lower CD Rates Seem Less Likely

For CD savers, that means rates may remain stable or rise modestly if financial institutions anticipate tighter monetary policy or continue competing for deposits.

If the GDPNow estimate proves directionally accurate and inflation remains above target, the FOMC may have reason to keep interest rates at their current level or raise them. Strong economic growth would give policymakers more room to focus on inflation without the same concern that restrictive rates could significantly weaken employment.

Should You Lock In A CD Rate Now?

Locking in a CD rate now can protect your yield if deposit rates unexpectedly decline, but the possibility of stable or higher interest rates makes term choice especially important.

The latest economic data suggest some risk for savers who lock their money into CDs with very long terms: If the Fed raises rates or financial institutions continue competing more aggressively for deposits, higher CD offers could become available after the CD is opened. A shorter term allows the saver to reconsider available rates sooner.

Savers who want yield, structural protection from an unexpected rate decrease, and flexibility in case rates move higher soon may favor shorter maturities or divide their deposits among several maturity dates through a CD ladder.

A CD ladder divides deposits among CDs with different maturity dates. As each CD matures, savers can use the money or compare current rates before reinvesting. Savers can also compare available 6-, 12-, 24-, 36- and 60-month terms with the CD Yield Curve before selecting a maturity.

Which CD Terms Are Rising Fastest?

The top 1 percent of six-month CD rates rose the fastest over the past week, increasing 5 basis points from 4.15 percent to 4.20 percent. The top rates for all other terms remained unchanged during the week.

Over the latest 30-day period, the 99th-percentile rate increased across maturities (data as of 8/1/2026):

How CD Valet Tracks These Rates

Every CD rate listed on CD Valet is verified with publicly available data from federally insured banks and institutions. Rates are directly sourced and verified through a combination of daily manual reviews and structured data checks to ensure accuracy, availability and transparency.

CD Valet operates as a comprehensive CD marketplace, featuring over 40,000 rates from nearly 5,000 federally insured banks and credit unions. Rates are updated as often as daily, including after every FOMC meeting. Learn more about CD Valet’s data verification policy.

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