Morsa Images/ Getty Images; Illustration by Austin Courregé/Bankrate
A certificate of deposit (CD) is a time deposit account in which your money accrues interest at a fixed yield for a set period of time, or term. CD terms typically range from as short as a few months to as long as five years, or even longer. However, if you withdraw your funds before the CD’s term ends, you’ll likely be charged an early withdrawal penalty, which is typically some or all of the interest you’ve accrued.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current national average annual percentage yields (APYs) for this week, according to Bankrate’s most recent survey:
- 1-year CD yield: 1.80 percent APY
- 3-year CD yield: 1.43 percent APY
- 5-year CD yield: 1.44 percent APY
The national average rate for one-year and five-year CDs started to increase in February 2022, driven in part by rising Treasury yields and expectations of Federal Reserve rate increases. Since February 2023, the one-year CD average has been higher than the five-year CD average.
In September 2024, the Fed cut rates by half of a percentage point, bringing the federal funds rate to a target range of 4.75-5 percent. Yields on competitive CDs had been decreasing gradually in the months leading up the rate cut. APYs on some CDs may decrease further in weeks and months following the latest rate decision. Prior to the rate cut, the Fed had held rates at a 23-year high since July 2023, in an effort to tame high inflation.
Latest average CD APYs: 3-month trend
Bankrate monitors the national average rates on various CD terms, including:
| Date | 1-year CD | 3-year CD | 5-year CD |
|---|---|---|---|
| 09/16/2024 | 1.80% | 1.43% | 1.44% |
| 09/09/2024 | 1.78% | 1.41% | 1.42% |
| 09/02/2024 | 1.83% | 1.43% | 1.43% |
| 08/26/2024 | 1.81% | 1.42% | 1.43% |
| 08/19/2024 | 1.80% | 1.43% | 1.44% |
| 08/12/2024 | 1.83% | 1.45% | 1.45% |
| 08/05/2024 | 1.84% | 1.45% | 1.45% |
| 07/29/2024 | 1.81% | 1.44% | 1.44% |
| 07/22/2024 | 1.81% | 1.42% | 1.43% |
| 07/15/2024 | 1.81% | 1.42% | 1.43% |
| 07/08/2024 | 1.79% | 1.41% | 1.40% |
| 07/01/2024 | 1.81% | 1.43% | 1.43% |
| 06/24/2024 | 1.80% | 1.42% | 1.43% |
| 06/17/2024 | 1.79% | 1.42% | 1.43% |
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology that determines the national average CD rates. More than 500 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.
Compare CD rates by term for September 2024
Current 6-month CD rates
- Quontic Bank — 5.10% APY
- Bank5 Connect — 5.05% APY
- America First Credit Union — 5.00% APY
- LendingClub Bank — 5.00% APY
- Ally Bank — 4.80% APY
See additional best 6-month CD rates.
Current 1-year CD rates
- Limelight Bank — 4.90% APY
- Bread Savings — 4.90% APY
- America First Credit Union — 4.80% APY
- TAB Bank — 4.85% APY
- CIBC Bank USA — 4.81% APY
See additional best 1-year CD rates.
Current 3-year CD rates
- LendingClub Bank — 4.30% APY
- SchoolsFirst Federal Credit Union — 4.20% APY
- Synchrony Bank — 4.15% APY
- Marcus by Goldman Sachs — 4.15% APY
- America First Credit Union — 4.05% APY
See additional best 3-year CD rates.
Current 5-year CD rates
- SchoolsFirst Federal Credit Union — 4.35% APY
- Synchrony Bank — 4.00% APY
- Marcus by Goldman Sachs — 4.00% APY
- Alliant Credit Union — 4.00% APY
- LendingClub Bank — 4.00% APY
See additional best 5-year CD rates.
Note: Annual percentage yields (APYs) shown are as of Sept. 19. Bankrate’s editorial team updates this information weekly. APYs may have changed since they were last updated and may vary by region for some products.
Current CD rates FAQs
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The Federal Reserve’s decisions on interest rates can affect CD rates. Once the central bank makes a decision to change the rate, competitive banks will generally move CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.
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CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will likely influence CD rates. Competition among banks and credit unions will also influence the payout on their CDs, as well as whether or not the financial institution needs deposits. In general, online banks tend to pay higher rates than banks with branches. Changes in Treasury yields and economic conditions also influence CD rates.
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