Banks and Credit Unions Buck Trend, Raise CD Rates to Attract Deposits
Event summary
- Nearly 60% of CD rate changes from CD Valet's partners in 2026 have been increases, despite an overall downward trend.
- In January 2026, 80% of CD rate changes were decreases, averaging 23 basis points, while 20% were increases averaging 32 basis points.
- 62% of institutions increasing CD rates were credit unions, while 38% were banks.
- CD Valet's digital marketplace tracks 40,000+ rates from nearly 5,000 financial institutions nationwide.
The big picture
In a falling rate environment, some financial institutions are counterintuitively raising CD rates to attract deposits, highlighting a strategic shift in deposit acquisition. This move underscores the growing importance of CDs as a growth engine amid economic uncertainty, with community banks and credit unions leveraging digital marketplaces like CD Valet to compete with larger institutions. The flattening yield curve and increased competition in the deposit landscape suggest that institutions with agile pricing and marketing strategies will be best positioned to drive growth.
What we're watching
- Deposit Strategy
- How the strategic use of CD rate increases will affect deposit growth for community financial institutions.
- Market Differentiation
- Whether institutions leveraging real-time market data can sustain competitive advantages in the deposit landscape.
- Consumer Behavior
- The pace at which savers adapt to using digital tools to track and capitalize on CD rate trends.
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