When my mom, Martha, finally retired last year, she didn’t celebrate with a cruise or a fancy dinner. She made tea, sat at the kitchen table, opened her laptop, and asked me a question only someone from her generation would pose:
“Do you think now’s a good time to put my savings into a CD?”
That one question opened the door to a much bigger conversation—one that’s on the minds of a lot of savers across the U.S. and Europe right now. Because even though CD rates have dropped a bit from last year’s peak, they’re still offering some of the best returns we’ve seen in over a decade.
Take Newtek Bank’s 9-month CD, for instance. It’s currently offering a 4.60% APY, locking in your rate through March 2026. If that feels too short, PenAir Credit Union has a 21-month option at 4.50%, while Rising Bank gives you 4.51% for a 6-month term. You can even go as short as 3 months with PonceBankDirect, also at 4.50%.
My mom was amazed. “I remember when CDs barely paid over 1%,” she said. She wasn’t wrong. Back in early 2022—before the Fed launched its aggressive rate-hike campaign—top CD rates were languishing between 0.50% and 1.70%. So even though today’s high is no longer the 6% we saw in October 2023, locking in something in the 4.5% range is still a smart move.
In fact, several of my friends have been doing just that. Steve, a colleague of mine, opted for the 21-month PenAir CD to lock in his rate through 2027. Amy, on the other hand, is more cautious. She went with Lafayette Federal Credit Union’s long-term CD, which offers 4.28% across all terms from 7 months up to 5 years. Her logic? “I’d rather lock it in and not worry about rate drops later.”
And she might be onto something. While the Federal Reserve has held rates steady throughout 2025 so far, many analysts expect cuts later this year or in 2026. If that happens, CD rates will almost certainly follow. By locking in a good APY now, you can protect your savings from future dips—something Martha found particularly appealing.
Now, you might also be hearing about “Jumbo CDs”—those that require a bigger minimum deposit but sometimes offer slightly better rates. For example, Hughes Federal Credit Union’s 17-month jumbo CD offers 4.50% versus 4.30% on a standard 18-month term. For 3-, 4-, and 5-year terms, GTE Financial and Lafayette also offer 4.33% on jumbo deposits—just a hair higher than standard options. That said, jumbo isn’t always better, so it’s smart to compare both types before committing.
If you’re anything like Martha—or just someone who prefers to grow their money without stock market stress—now’s a strategic time to consider CDs. They may not make headlines like AI stocks or meme coins, but they’re a quiet, dependable workhorse in any diversified portfolio.
Ultimately, whether you go for 3 months or 5 years, CDs can give you both peace of mind and a respectable return—especially in a volatile economic environment. As Martha told me after signing up for her 9-month Newtek CD, “It may not be glamorous, but it’s solid. And that’s what I need right now.”
Honestly, don’t we all?