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A certificate of deposit (CD) is a time deposit account. A bank agrees to pay interest at a certain rate if savers deposit their cash for a set term, or period of time.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current average annual percentage yields (APYs) for this week, according to Bankrate’s most recent survey:
- 1-year CD yield: 1.74 percent APY
- 3-year CD yield: 1.38 percent APY
- 5-year CD yield: 1.43 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 in 2022. Since February 2023, the one-year CD average has been higher than the five-year CD average.
These are the first rate increases since 2018, and inflation remains high.
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|
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 current CD rates by term for December 2023
Current CD rates: 6-month
- Bask Bank—5.55% APY
- Popular Direct—5.55% APY
- Bank5 Connect—5.50% APY
- Vio Bank—5.35% APY
- America First Credit Union—5.30% APY
Current CD rates: 1-year
- Limelight Bank—5.75% APY
- Popular Direct—5.67% APY
- CIBC Bank USA—5.66% APY
- Bask Bank—5.60% APY
- Bread Savings—5.55% APY
Current CD rates: 3-year
- Popular Direct—5.00% APY
- Bread Savings—4.90% APY
- First Internet Bank of Indiana—4.75% APY
- Barclays Bank—4.50% APY
- SchoolsFirst Federal Credit Union—4.45% APY
Current CD rates: 5-year
- Popular Direct—4.70% APY
- SchoolsFirst Federal Credit Union—4.60% APY
- First Internet Bank of Indiana—4.59% APY
- Barclays Bank—4.50% APY
- Bread Savings—4.50% APY
Note: Annual percentage yields (APYs) shown are as of Nov. 28-30, 2023, and apply to balances of $10,000. APYs for some products may vary by region. APYs may have changed after the dates listed here.
Current CD rates FAQs
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.For instance since March 2022, the one-year CD national average has mostly increased or stayed the same.
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.