This Could Be Your Last Chance to Lock-In a 4% APY CD in 2025

If you've been thinking about locking in a certificate of deposit at 4.00% APY, the window is closing fast. The Fed is widely expected to cut rates in September, and once that happens, we don't know when we'll see them this high again.

We've seen this movie before. People drag their feet waiting for "just a little more," then the Fed cuts rates, and everyone is stuck thinking about what they could have been earning.

Right now feels like that moment all over again.

4.00% APYs won't last much longer

Banks generally wait for the Federal Reserve to cut rates before making any big changes, but FedWatch is currently estimating about an 80% chance the Fed cuts rates during their September meeting.

Here's the math:

• $25,000 in a 3-year CD at 4.00% APY: You'd earn about $3,121 in total interest.
• $25,000 in a 3-year CD at 3.75% APY: That falls to about $2,919.

That's a $200 difference over three years just because you waited too long. Multiply that over longer terms, coupled with the potential of additional rate cuts, and the loss in compounding interest just keep growing.

Why a CD works right now

I'm the first to admit CDs aren't exciting. They're not going to double your money overnight or even out-earn the stock market over the long-term. But they are safe, predictable, and most importantly right now, guaranteed.

Locking in a 4.00% APY today means you get that return no matter what the Fed does this fall. That's peace of mind you won't find in many places.

My best advice

Here's how I'd think about it if I were in your shoes:

• Go short (6 to 12 months) if you want flexibility and think only one rate cut is coming.
• Go long (2 to 3 years) if you want to lock in today's higher yield and not worry about chasing rates later.
• Split the difference with a CD ladder. Spread your money across multiple CDs so something always comes due.

I'd rather grab a guaranteed 4% return today than sit on the sidelines and hope for something better that probably isn't coming.

Where to move fast

Don't expect big banks like Chase or Bank of America to pay you much. Most of them still offer close to nothing. The real deals are at online banks. Right now, plenty are still at or above 4.00% APY on 12-month terms, but those listings shrink every week.

Don't miss it this time

The Fed is almost certainly about to pull the rug out from under savers. The question is whether you'll be one of the people who acted before it happened, or one of the people kicking themselves after.

This is your shot to lock in a 4.00% APY before it disappears. Don't wait until you're stuck earning half that. Visit our best CDs rates page to find the perfect fit for you.