Full Article Link: Forbes Advisor – CD Interest Rates Forecast: Will CD Rates Go Up In 2025?
Quote from Stephan Shipe
“If rate cuts begin, CD yields will follow. That expectation is already creating an unusual yield curve. In many cases, short-term CDs are offering higher rates than longer-term options because markets anticipate rates will move lower.”
—Stephan Shipe, Founder of Scholar Financial Advising
Key Takeaways
- CD Rates Are Likely at or Near Their Peak
After a strong run through 2023 and early 2024, CD rates are showing signs of slowing. Recent Federal Reserve decisions to hold rates steady suggest the high-yield window may be closing. With rate cuts on the horizon, locking in a competitive CD now could protect your returns. - Unusual Yield Curve Signals What’s Next
According to Dr. Stephan Shipe, short-term CDs are currently offering higher rates than longer-term ones—a rare inversion that reflects market expectations of falling interest rates. That’s a signal that we may already be past the peak for CD yields. - Acting Now Can Be a Smart Move for Savers
Experts note that top-tier CD offers have already dropped significantly—Sallie Mae’s 12-month CD, for example, went from 5.15% APY in June 2024 to 4.20% in June 2025. If the Fed cuts rates again, further declines could follow quickly. - Don’t Wait for the Fed—Banks Move Faster on the Way Down
Historically, banks are slower to raise CD yields during Fed tightening cycles but quick to lower them once cuts begin. That lag means waiting could mean missing out on the best available rates, especially for short-term CDs that adjust rapidly. - Where To Find the Best CD Rates
Online banks and credit unions remain your best bets for high yields and low fees. Promotional CDs—those with odd terms like 11 or 19 months—can also deliver strong returns if you’re flexible. Be proactive and shop around for the best options. - CDs as “Rate Insurance”
For conservative savers, CDs serve as protection against declining rates. Locking in now offers peace of mind and stable income—even if market rates drop in the near future.