Fed cuts impact bank deposit rates

The Federal Reserve, which is like the boss of banks in the U.S., cut interest rates three times in 2024.

This made some bank deposit rates, like those for one-year certificates of deposit (CDs), go down.

At first, the rates dropped a lot, but then they went up a little bit.

Even after the latest rate cut in December 2025, the average CD rate was about the same as it was in July 2025.

So, the Fed's actions had a big impact on how much banks pay people for keeping their money in CDs.