{"id":4403,"date":"2025-10-02T13:31:02","date_gmt":"2025-10-02T20:31:02","guid":{"rendered":"https:\/\/www.cdvalet.com\/blog\/?p=4403"},"modified":"2025-12-24T09:36:01","modified_gmt":"2025-12-24T17:36:01","slug":"september-2025-ratewatcher-report","status":"publish","type":"post","link":"https:\/\/www.cdvalet.com\/insights\/september-2025-ratewatcher-report\/","title":{"rendered":"CD Valet\u2019s September CD Rate Analysis Reveals Accelerated Decline in CD Rates Following Federal Reserve Action"},"content":{"rendered":"\n

CD rate yield curve continues to be inverted, as volume of rate changes doubles from August<\/em><\/h3>\n\n\n\n

CD Valet<\/a> 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 approximately 91% of CD rate changes made during September were decreases, reflecting the Federal Open Market Committee\u2019s (FOMC) recent .25% reduction in interest rates.<\/p>\n\n\n\n

\u201cWhile savers might have missed the high point in this interest rate cycle, there is still a window of opportunity,\u201d says Mary Grace Roske, head of marketing and communications for CD Valet.  \u201cWhile the best time to lock in a rate was yesterday, the second-best time is today. As high-yield savings and money markets could fall substantially by year-end, now is a good time to lock in a fixed-rate CD.\u201d<\/p>\n\n\n\n

Only 9% of CD rate changes were increases during the month, continuing the downward trend from June, July and August which saw the volume of rate hikes at 42%, 36% and 26% respectively.<\/p>\n\n\n\n

In its monthly Ratewatcher report, CD Valet analyzes its digital marketplace which includes all CDs offered by financial institutions that publish their CD rates online. This analysis is based on CD Valet\u2019s comprehensive data which includes more than 38,000 retail CD rates, representing nearly 5,000 banks and credit unions.<\/p>\n\n\n\n

There were 5,662 CD APY decreases in September (four times as many as in August), and the average drop was 25 basis points. This compares to 574 CD APY increases reported during the month (up from 468 in August), averaging 45 basis points. This shows that while the majority of institutions are decreasing CD rates, some are taking advantage of this opportunity to drive deposits by increasing their competitive position with compelling rates.<\/p>\n\n\n\n

Roske reports that banks and credit unions are pulling back on the \u201cpromo\u201d CD offers, instead sticking more with the tried-and-true standard terms. With rates declining, she said, CD Valet expects to see fewer promo offers with terms shorter than 12 months.<\/p>\n\n\n\n

While the CD yield curve remains inverted, many expect it to flatten heading into late 2025 and early 2026, as the Fed\u2019s anticipated rate cuts begin to take hold and short-term yields fall faster, allowing the curve to normalize. This shift would reflect growing confidence that inflation is cooling and signal a return to more typical reward-for-term dynamics in the savings landscape.<\/p>\n\n\n\n

Other points of note from the September analysis include:<\/p>\n\n\n\n