Fact Check: Are cd rates going up?

Are CD Rates Going Up?

The claim in question revolves around the current trends in Certificate of Deposit (CD) rates, specifically asking whether they are on the rise. This inquiry is particularly relevant as consumers and investors alike seek to understand the implications of interest rate fluctuations on their savings and investment strategies.

What We Know

1. Current Rates: As of late October 2023, various sources report that CD rates are indeed showing an upward trend for certain terms. For instance, Investopedia notes that the best nationally available CD rates have increased, with some reaching as high as 6.00% APY for various terms, surpassing the rates from September 2023 2. SuperMoney also indicates that while the 3-month CD rates have increased by 0.34%, longer-term rates like the 18-month and 10-year CDs have seen a slight decrease, suggesting a mixed landscape 3.

2. Historical Context: According to the FDIC, the national average rates for CDs have fluctuated significantly over the past few years, with notable increases following the Federal Reserve's adjustments to interest rates 1. For example, the typical APY for a one-year CD was as low as 0.13% in January 2022, which has risen considerably since then 8.

3. Future Projections: Forecasts from sources like NerdWallet and Forbes suggest that while some short-term rates may continue to rise, longer-term rates might stabilize or even decline due to anticipated shifts in Federal Reserve policies 68. This indicates a potential divergence in rate trends based on the term length of the CDs.

Analysis

The evidence supporting the claim that CD rates are going up is substantial, particularly for short-term CDs. However, it is crucial to critically assess the reliability of the sources providing this information:

• Investopedia 2 is generally regarded as a reputable financial education platform, known for its comprehensive analysis and expert insights. However, it is important to note that it may have a slight bias towards promoting financial products, which could influence the presentation of data.

• SuperMoney 3 provides a detailed overview of current rates and trends, but as a financial comparison website, it may also have an interest in highlighting higher rates to attract users to its platform.

• NerdWallet 6 and Forbes 8 are both well-established financial advisory platforms. They provide forecasts based on market analysis, but their interpretations can be influenced by their respective audiences and potential conflicts of interest, especially if they promote specific financial products.

• The FDIC 1 is a government agency that offers reliable data on national rates and trends, making it a credible source for understanding the broader context of CD rates. However, its data is often retrospective, and it may not capture real-time fluctuations.

The mixed signals from different terms of CDs suggest that while some rates are increasing, others are not, indicating a nuanced market response to economic conditions. This complexity raises questions about the methodologies used in these analyses. For instance, are the rates reported reflective of actual consumer experiences, or do they represent promotional rates that may not be widely accessible?

Conclusion

In conclusion, the claim that CD rates are going up is assessed as "Mostly True." The evidence indicates a clear upward trend in short-term CD rates, with some reaching notable highs, while longer-term rates present a more complex picture, with some experiencing slight declines. This mixed landscape reflects broader economic conditions and the influence of Federal Reserve policies.

However, it is important to acknowledge the limitations in the available evidence. The sources cited, while generally reputable, may have biases or conflicts of interest that could affect their reporting. Additionally, the variability in rates across different terms complicates a straightforward interpretation of the overall trend.

Readers are encouraged to critically evaluate the information presented and consider their own financial situations when interpreting these trends. The landscape of CD rates is subject to change, and staying informed will be key to making sound financial decisions.

Sources

1. National Rates and Rate Caps | FDIC.gov. Retrieved from https://www.fdic.gov/national-rates-and-rate-caps
2. October CD Rates Even Higher Than September in Most Terms - Investopedia. Retrieved from https://www.investopedia.com/octobers-best-cd-rates-even-higher-than-septembers-in-most-terms-8346797
3. Current CD Rates (Week of October 30th, 2023) - SuperMoney. Retrieved from https://www.supermoney.com/current-cd-rates-week-of-october-27th-2023
4. Best CD rates of May 2025 (Up to 4.40%) - Bankrate. Retrieved from https://www.bankrate.com/banking/cds/cd-rates/
5. Top CD rates today: Oct. 23, 2023 — Highest rate increases to 5.75% - Yahoo Finance. Retrieved from https://finance.yahoo.com/news/top-cd-rates-today-oct-140018090.html
6. CD Rate Forecast: Are CD Rates Going Up in 2025? - NerdWallet. Retrieved from https://www.nerdwallet.com/article/banking/cd-rates-forecast
7. Current CD Rates, May 2025: APYs Slowly Dip - NerdWallet. Retrieved from https://www.nerdwallet.com/article/banking/current-cd-rates
8. CD Rates Forecast 2025 - Forbes Advisor. Retrieved from https://www.forbes.com/advisor/banking/cds/cd-rate-forecast/
9. Historical CD Interest Rates 1984-2025 - Bankrate. Retrieved from https://www.bankrate.com/banking/cds/historical-cd-interest-rates/
10. US 3-Year CD Rate Monthly Trends: National Rates and Rate Caps - YCharts. Retrieved from https://ycharts.com/indicators/us_3year_cd_rate