Banks Slash CD Rates as Nonbanks Seek Charters Through M&A

US banks sharply reduced CD rates in late 2025, S&P Global Market Intelligence reported. Institutions offering 1-year, $10,000 CDs above 4% fell from 197 at the end of the third quarter to 28 by Feb. 27, 2026, as balances declined 1.5% and funding pressures softened.

Another S&P post discussed how nonbanks are increasingly acquiring banks to obtain charters more quickly and at lower cost, with some deals receiving regulatory approval in under 150 days (versus years to build a bank from scratch).