CD Rates Ease as Fee Income Rebounds

US banks resumed lowering CD rates in late 2025 after two Fed cuts, though high-rate CDs continue to reprice slowly, S&P Global Market Intelligence reported. Additionally, aggregate CD balances rose slightly in the third quarter, while CD concentration fell for the fifth consecutive quarter. Brokered deposits and FHLB advances also declined. (The Fed lowered interest rates again yesterday, after the article was published.)

Another S&P article discussed how deposit-fee income increased to its highest level since 2022, with overdraft-related charges rising more than 10% from the prior quarter and total consumer deposit fees rising 6.6%, driven primarily by large banks.