1. Report Industry Investment Rating - No investment rating for the industry is provided in the report. 2. Core Viewpoints of the Report - In the short - term, there is a risk of a rebound in CD interest rates [1]. - It is most appropriate to use the 7D OMO interest rate as the benchmark for CD interest rates, while the marginal winning bid rates of repurchase and MLF can only be used as auxiliary evidence [4]. 3. Summary by Relevant Catalogs CD Interest Rate Rebound Risk - On February 6, 2026, the 6M and 1Y AAA - grade CD interest rates were 1.58% and 1.59% respectively, and as of March 13, they had decreased by 7.0bp and 5.3bp respectively. Currently, there is a short - term risk of a rebound in CD interest rates [1]. - From a valuation perspective, CD is currently overpriced relative to the policy rate. The spreads between 6M and 1Y AAA - grade CDs and 7D OMO are at their lowest levels in the past year and at the 5% and 3% percentile levels since early 2024 respectively. Even considering the policy rate cut expectation, the spreads are still only at the 34% and 28% percentile levels since early 2024 [2]. - From a narrative perspective, the market may start to hype up topics such as the reduction of outright repurchase volume and quarter - end liquidity fluctuations in the short - term. The central bank will conduct a 500 billion yuan outright repurchase operation on March 16, with a net withdrawal of 100 billion yuan of base money on that day [2]. - From a trading perspective, when interest rates have declined significantly and the market is obviously optimistic, investors should be cautious rather than continue to chase the rise, especially in a volatile market this year [2]. CD Interest Rate Benchmark - Some investors believe that the marginal winning bid rates of outright repurchase and MLF should be used as the valuation benchmark for CD interest rates, but this method is not advisable. The central bank affects the medium - term liquidity level of the banking system through the volume of outright repurchase and MLF operations to regulate CD and other money market interest rates. The marginal winning bid rates of outright repurchase and MLF are the result of market - based bidding and are indirectly affected by CD interest rates. Using them as a benchmark may cause trouble for investors [3]. - The current market - oriented interest rate transmission chain in China is from the central bank's policy rate to the market benchmark rate and then to various financial market interest rates. CD interest rates have the attribute of a money market benchmark rate to some extent, so it is most appropriate to use the central bank's policy rate (7D OMO interest rate) as the benchmark, and the marginal winning bid rates of outright repurchase and MLF can only be used as auxiliary evidence. Broadly speaking, it is also appropriate to use the 7D OMO interest rate as the benchmark for the entire interest rate system [4]. - The medium - to long - term trend of CD interest rates can be regarded as the "micro - expression" of monetary policy, which is different from monetary policy signals. Monetary policy signals are actively released by the central bank, while "micro - expressions" are signs formed during the implementation of monetary policy but not necessarily intended by the central bank to be released [4].

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced a third rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The highest CD rates currently available are around 4.1% APY, primarily offered by online banks and credit unions for shorter terms [3] CD Rates Overview - As of December 20, 2025, the best CD rates are 4.1% APY from Sallie Mae Bank for a 15-month CD and LendingClub Bank for an 8-month CD [3] - The interest earned from a CD is determined by the annual percentage rate (APY), which accounts for the base interest rate and compounding frequency [3] Interest Earnings Examples - A $1,000 investment in a one-year CD at 1.63% APY would yield a total of $1,016.42 after one year, while a 4% APY would result in $1,040.74 [4] - Increasing the deposit to $10,000 in a one-year CD at 4% APY would result in a total balance of $10,407.42, earning $407.42 in interest [5] Types of CDs - Bump-up CDs allow for a one-time request to increase the interest rate if the bank's rates rise during the term [5] - No-penalty CDs permit early withdrawal without penalties, providing more flexibility [5] - Jumbo CDs require a higher minimum deposit (typically $100,000 or more) and may offer higher interest rates, though the difference may be minimal in the current environment [5] - Brokered CDs are purchased through a brokerage and may offer higher rates or flexible terms but carry more risk and may not be FDIC-insured [5]

Core Insights - CD rates are currently higher than historical averages, with several institutions offering rates of 4% APY and above, particularly from online banks [2] - The highest CD rate available today is 4.1% APY, offered by LendingClub, Marcus by Goldman Sachs, and Sallie Mae on various CD terms [2] - The Federal Reserve has been cutting its target rate, which has led to a decline in CD rates since last year [2][5] Group 1: Current CD Rates - CD rates are relatively high compared to historical averages, but have been declining since the Federal Reserve began cutting rates [2] - The highest CD rate currently available is 4.1% APY, offered by LendingClub, Marcus by Goldman Sachs, and Sallie Mae [2] - Several financial institutions are providing competitive rates of 4% APY and up, especially among online banks [2] Group 2: Federal Reserve Actions - The Federal Reserve has cut its target rate three times in late 2024 by a total of one percentage point due to slowing inflation and an improved economic outlook [3] - The Fed announced its third rate cut of 2025, with potential additional cuts anticipated in 2026, although the timing and number of cuts remain uncertain [4] - The federal funds rate influences deposit interest rates, leading to a correlation where lower Fed rates typically result in lower CD rates [5] Group 3: Opening a CD - The process for opening a CD account varies by institution but generally includes researching rates, choosing an appropriate account, preparing necessary documents, completing the application, and funding the account [6] - It is important to compare CD rates online to find the best offers and consider factors such as term length and minimum deposit requirements [6] - Many financial institutions allow online applications for CDs, which can be completed quickly, often with instant approval [6]

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.1% APY available from several institutions [2] - Notable offers include Marcus by Goldman Sachs (14-month CD), Sallie Mae (15-month CD), Synchrony (9-month CD), and LendingClub (8-month CD) [2] Group 2: Historical Context - CD rates were relatively high in the early 2000s but began to decline due to economic slowdowns and Federal Reserve rate cuts, with average one-year CDs at around 1% APY by 2009 [3][4] - The trend of falling rates continued into the 2010s, with average rates for 6-month CDs dropping to about 0.1% APY by 2013 [4] - A slight recovery in CD rates occurred between 2015 and 2018 as the Fed gradually increased rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Fed to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Fed has started cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but currently, the highest average rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] - Factors to consider when choosing a CD include goals for locking away funds, type of financial institution, account terms, and inflation [9]

Core Insights - Deposit account rates are declining, but competitive returns on certificates of deposit (CDs) can still be locked in, with the best CDs offering rates above 4% [1][2] Group 1: Current CD Rates - The best short-term CDs (six to 12 months) currently offer rates around 4% to 4.5% APY, with the highest rate at 4.1% APY available from Marcus by Goldman Sachs, Sallie Mae Bank, and Synchrony Bank [2] - Historical trends show that CD rates were significantly higher in the early 2000s but fell to around 1% APY for one-year CDs by 2009 due to economic slowdowns and Federal Reserve rate cuts [3][4] Group 2: Historical Context - The trend of falling CD rates continued into the 2010s, with average rates dropping to about 0.1% APY for 6-month CDs and 0.8% APY for 5-year CDs by 2013 [4] - A slight improvement in CD rates occurred between 2015 and 2018 as the Federal Reserve began gradually increasing rates, but the COVID-19 pandemic led to emergency rate cuts, causing new record lows [5] Group 3: Recent Developments - Following the pandemic, inflation prompted the Federal Reserve to hike rates 11 times between March 2022 and July 2023, resulting in higher APYs on savings products, including CDs [6] - As of September 2024, the Federal Reserve started cutting the federal funds rate, leading to a decrease in CD rates from their peak, although they remain high by historical standards [7] Group 4: Understanding CD Rates - Traditionally, longer-term CDs offer higher interest rates, but currently, the highest average CD rate is for a 12-month term, indicating a flattening or inversion of the yield curve [8] - When choosing a CD, factors such as goals, type of financial institution, account terms, and inflation should be considered to ensure the best fit for individual needs [9]

Core Insights - The Federal Reserve has cut its federal funds rate three times in 2024 and announced its first rate cut for 2025, indicating a potential decline in competitive CD rates in the near future [1] - The best CD rates are currently found in shorter terms, particularly around one year or less, with online banks and credit unions leading in offering competitive rates [2] CD Rates Overview - As of September 27, 2025, the highest CD rate available is 4.45% APY from LendingClub for an 8-month CD [2] - The interest earned from a CD is determined by the annual percentage rate (APY), which reflects total earnings after one year, factoring in the base interest rate and compounding frequency [2] Interest Earnings Examples - An investment of $1,000 in a one-year CD at 1.70% APY with monthly compounding results in a total balance of $1,017.13 after one year, yielding $17.13 in interest [3] - Conversely, a one-year CD at 4% APY would grow the same $1,000 investment to $1,040.74, resulting in $40.74 in interest [3] Deposit Impact on Earnings - Increasing the deposit amount in a CD significantly enhances potential earnings; for instance, a $10,000 deposit in a one-year CD at 4% APY would yield a total balance of $10,407.42, translating to $407.42 in interest [4] Types of CDs - Various types of CDs offer different benefits, which may include: - **Bump-up CD**: Allows for a one-time request to increase the interest rate if the bank's rates rise during the term [4] - **No-penalty CD**: Provides the option to withdraw funds before maturity without incurring penalties [4] - **Jumbo CD**: Requires a higher minimum deposit (typically $100,000 or more) and often offers higher interest rates, though the difference may be minimal in the current environment [4] - **Brokered CD**: Purchased through a brokerage, potentially offering higher rates or flexible terms, but may carry more risk and lack FDIC insurance [4]