Bread Financial Raises 1-Year CD APY to 4.25% as 16 Banks Lift Deposit Rates
Updated
Updated · CNBC · Aug 12
Bread Financial Raises 1-Year CD APY to 4.25% as 16 Banks Lift Deposit Rates
1 articles · Updated · CNBC · Aug 12
Summary
Bread Financial raised its 1-year CD yield by 10 basis points to 4.25% in the past week, putting it among the highest nationally offered rates.
Jefferies said 16 banks increased maximum CD yields over the past month as deposit competition stayed intense and banks flagged higher funding costs in the second half of 2026.
PNC led the recent moves with a 50-basis-point increase on its 7-month CD to 4%, while Popular Direct also offers 4.25% on a 1-year CD and several peers pay 4% or more.
The richer CD payouts come as 6-month Treasury bill yields climbed to 3.93% from 3.62% since the Iran war, while money market fund yields have barely moved, with the Crane 100 index at 3.49%.
For savers, locking in a CD secures a higher rate but reduces liquidity because early withdrawals forfeit interest, and renewal rates may be less competitive.