Fed Reaction: Fed Holds Steady, But Top CD Rates Are Already Climbing

New data from CD Valet indicates that interest rates for certificates of deposit (CDs) are on the rise, even as the Federal Reserve opted to maintain its current interest rates amid ongoing inflation concerns. As of October 28, 2026, the Federal Reserve held steady, but the CD market has already seen significant activity. Out of 41,000 CDs monitored by CD Valet, 1,044 rates increased this past week, while only 91 rates decreased. The median CD rate has climbed to 3.30%, a notable increase from the previous stagnant level of 3.25% that had persisted for several months.

According to CD Valet’s findings, there are currently over 7,200 CDs offering an annual percentage yield (APY) of at least 4.00%, with several rates exceeding 5.00% APY. Key observations as of October 26, 2026, reveal that the top 12- and 24-month CD rates have increased from 4.30% to 4.50% APY in the last month. Furthermore, banks are raising rates significantly more often than they are cutting them; for every 11 increases, there has been just one decrease this week, highlighting a trend of growing rates.

The disparity between CD yields and the Federal Reserve's decisions is becoming increasingly apparent. The median yield for a 24-month CD on CD Valet currently stands at 3.10% APY, but the highest-performing 24-month CDs are offering rates as high as 4.50% APY. This difference translates to approximately $2,800 in additional earnings over two years for a deposit of $100,000, underscoring the importance of actively comparing rates.

Mary Grace Roske, Head of Communications for CD Valet, emphasized that savers should not wait for the Federal Reserve's actions to take advantage of current market conditions. "Savers don't need to wait for the Fed," she stated. "And many of the best rates may not last. Nearly half of the CDs on CD Valet are promotional specials which can disappear or reprice quickly. Savers who wait for the Fed to act could miss out."

For savers considering whether to lock in a CD, now appears to be a favorable time, especially for those willing to shop around for the best rates and terms. While the yield curve remains relatively flat, there is a slight increase noted in the 12 to 22-month terms, where the top 1% of rates are offering CDs with yields up to 4.75% APY. This flat yield curve generally benefits savers, as the top rates are consistent across various terms, allowing individuals to select terms that align with their financial timelines without sacrificing yield.

Savers are advised to take several factors into account when choosing a CD. First, they should look beyond the median rates. For instance, the leading 12-month rate of 4.50% APY surpasses the 12-month median by over a full percentage point, which could equate to an additional $288 in interest on a $25,000 deposit over a year. Additionally, with the current flat yield curve, savers should select a term based on their financial needs rather than solely on the rate; a top 6-month CD can offer nearly the same yield as a top 24-month CD.

Considering a CD ladder strategy may also be beneficial, as this approach allows savers to stagger their investments across various terms. This way, they can reinvest portions of their balance at potentially higher rates as each CD matures. Furthermore, savers should pay close attention to the fine print of promotional offers, checking for minimum deposits, balance caps, and any special terms or membership requirements. Lastly, it is crucial to ensure that deposits are within the coverage limits set by the Federal Deposit Insurance Corporation (FDIC) for banks or the National Credit Union Administration (NCUA) for credit unions.