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Lock In This 4.36% CD Before Next Week’s Expected Fed Rate Cut

Published

8 months ago

October 22, 2025

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If you’re looking to save some cash, you have a small window of opportunity to lock in a guaranteed, inflation-beating return before savings rates fall further.

Why’s that? The Federal Reserve is meeting next week to decide if there will be another rate cut and it’s pretty much a given. After weakening jobs data, the U.S. central bank lowered its benchmark rate in September, which marked the first time since December 2024. For online banks and credit unions that tend to offer the highest-yield CDs, there’s certainly been a domino effect.

A look into CD rates

CD rates generally mimic the fed funds rate, going down when the Fed lowers rates. This is because banks can borrow for less, so they no longer need to use high returns to incentivize savers to make deposits. While savers early last year could easily find a 1-year CD offering 5% APY or even higher, the best 1-year CD rates now hover around 4% APY.

A 4% savings yield is still a solid return and more than double the national average. Because CD rates are fixed, opening one now locks you into a guaranteed rate, so when the next rate cut hits your current rate is not affected.

For instance, OMB Bank is offering 4.36% APY on a 3-month CD — not a long term if you’re worried about keeping your money locked up. There’s a $1,000 minimum deposit.

OMB Bank CD

Annual Percentage Yield (APY)
Terms
Minimum deposit
Monthly fee
Early withdrawal penalty fee

If you withdraw the balance entire principal amount from your CD account prior to maturity, you’ll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Terms apply.

Pros

Range of fixed CD terms
Offers limited-time CD specials
Offers mobile banking app
No set up or maintenance fees

Cons

$1000 minimum deposit
You can’t access your money before your CD term ends
Lower rates on most CD term options
Early withdrawal penalty fees apply

United Fidelity Bank has CD rates ranging from 4.20% APY to 4.35% APY, with terms of six months to five years, if you’re looking for something longer. The minimum deposit is also $1,000.

United Fidelity Bank CD

Annual Percentage Yield (APY)
Terms
Minimum deposit
Monthly fee
Early withdrawal penalty fee

If you withdraw the balance entire principal amount from your CD account prior to maturity, you’ll be charged an early withdrawal penalty based on the term of your CD and the principal (except in the case of a No-Penalty CD). Terms apply.

Pros

Above-average APYs
Range of CD terms
No monthly fee
10-Day Grace Period: At maturity, customers have 10 days to make additions, withdrawals or other changes without incurring a penalty.

Cons

$1000 minimum deposit
You can’t access your money before your CD term ends
Early withdrawal penalty fees apply

For a lower minimum ask, consider LendingClub, which only requires a $500 deposit. Its top CD rate is currently 4.25% APY on an 8-month term.

LendingClub CDs

LendingClub Bank, N.A., Member FDIC

Annual Percentage Yield (APY)
Terms
Minimum deposit
Monthly fee
Early withdrawal penalty fee

Early withdrawal penalty applies. For terms 1 year or less, the penalty is 90 days simple interest. For terms greater than 1 year, the penalty is 180 days simple interest.

Pros

Above-average APYs
Range of CD terms
No monthly fee

Cons

$500 minimum deposit
You can’t access your money before your CD term ends
Early withdrawal penalty fees apply
No physical branch locations

LendingClub offers a variety of products, including savings accounts and CDs.

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

Annual Percentage Yield (APY)

4.20% (with monthly deposits of at least $250), or 3.20%

How to choose the best CD for you

When comparing CDs, it’s obvious that a high APY is key but, really, the best CD for you should have a term length you’re comfortable with, since your funds ideally remain untouched until the term is up. Any withdrawals prior usually have a penalty fee.

If you want a savings account with more flexibility to accessing your funds, a high-yield savings account may be the better move. Unlike a CD, a high-yield savings account allows you to tap into your funds at any time (though there are usually monthly withdrawal limits) and APYs can be just as high. High-yield savings account rates are variable, not fixed, though, so they can go up or down at any time.

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