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CD Valet's July Rate Analysis: Focus on 12-Month CDs

In its monthly report, CD Valet—a digital platform that connects consumers with top Certificate of Deposit (CD) rates across the United States—recently released data revealing significant trends in the landscape of CDs. From July 1 to July 31, 2025, the spotlight was firmly on 12-month CDs, which demonstrated both a competitive edge in rates and a strategic focus from financial institutions aiming to secure consumer deposits.

Highlights from the Report

The data indicated that the average rate for a 12-month CD rose to 4.80% APY, marking the highest average rate competing in the marketplace. Moreover, the 12-month term saw an impressive average increase of 41 basis points during the month, while the median increase rested at 20 basis points. This trend highlights a growing recognition of the 12-month CD's potential to meet consumer needs in a shifting economic landscape.

Despite the overall backdrop of fluctuating rates, with a total of 584 rate increases observed against 1,019 decreases, approximately 36% of adjustments resulted in higher rates, reflecting a decline in positive momentum from June, which witnessed 42% increases. Financial institutions seem to be preparing for potential changes in Federal Reserve policies, demonstrating both caution and opportunism as they seek to optimize their offerings.

Trends in Financial Institutions

In a market where consumers are increasingly rate-sensitive, financial institutions have recognized the importance of appealing to this demographic. Mary Grace Roske, the Head of Marketing at CD Valet, emphasizes, "With strong consumer interest and competitive momentum in the deposit space, financial institutions should consider optimizing their 12-month CD offerings – both in terms of rate and visibility."

Surprisingly, the data also revealed that credit unions are often leading the charge when it comes to rate increases, with approximately 65% of rate hikes originating from them. Credit union CD rates averaged 16% higher than those of traditional banks, showcasing their willingness to provide favorable terms to attract deposits. This shift signifies the potential benefits of banking with credit unions for consumers seeking reliable and high-yield options.

Why the 12-Month CD?

The 12-month CD's appeal stems from its balance of short-term security and competitive interest. Many consumers are wary of the fluctuating interest rate environment, prompting them to hedge their investments towards more stable options. Products like the 12-month CD provide that necessary security, allowing consumers to lock in higher rates while maintaining liquidity in a year's time.

Roske further notes, "When combined with digital onboarding and ongoing engagement, it can serve as a powerful tool for fostering deeper customer relationships, allowing financial institutions to nurture loyalty among depositors."

Conclusion

As the financial landscape continues to evolve—especially with anticipated interest rate cuts on the horizon—CD Valet's July analysis serves as a critical reminder of the importance of consumer insights, competitive offerings, and strategic product management for financial institutions. By prioritizing beneficial products like the 12-month CD, banks and credit unions stand to not only attract significant deposits but also cultivate lasting relationships with consumers seeking financial security.

For those interested in exploring these rates further, CD Valet offers a comprehensive look at over 30,000 retail CD rates from an extensive network of 4,000 banks and credit unions, enabling consumers to find the best-fitting solution for their financial needs.

To learn more about the competitive landscape of CDs and to access ongoing insights, visit CD Valet for detailed information and resources.