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 rates for the week of Jan. 20:
- 1-year CD rates: 0.21%
- 5-year CD rates: 0.35%
- 1-year jumbo CD rates: 0.23%
- 5-year jumbo CD rates: 0.36%
- Money market account rates: 0.09%
Since the Federal Reserve lowered the fed funds rate twice in March, CD and money market account (MMA) rates have been declining at many banks. Declining Treasurys may also cause CD rates to decrease.
Latest CD rates: 3-month trend
| Date | 1-year CD | 5-year CD | 1-year jumbo | 5-year jumbo | Money market account |
|---|---|---|---|---|---|
| 01/20/2021 | 0.21% | 0.35% | 0.23% | 0.36% | 0.09% |
| 01/13/2021 | 0.21% | 0.36% | 0.23% | 0.37% | 0.09% |
| 01/06/2021 | 0.21% | 0.36% | 0.23% | 0.37% | 0.09% |
| 12/30/2020 | 0.22% | 0.37% | 0.24% | 0.38% | 0.09% |
| 12/23/2020 | 0.22% | 0.38% | 0.24% | 0.39% | 0.09% |
| 12/16/2020 | 0.23% | 0.39% | 0.25% | 0.40% | 0.09% |
| 12/9/2020 | 0.24% | 0.40% | 0.26% | 0.41% | 0.10% |
| 12/2/2020 | 0.24% | 0.40% | 0.26% | 0.41% | 0.10% |
| 11/25/2020 | 0.24% | 0.41% | 0.26% | 0.42% | 0.10% |
| 11/18/2020 | 0.24% | 0.41% | 0.27% | 0.42% | 0.10% |
| 11/11/2020 | 0.24% | 0.41% | 0.27% | 0.42% | 0.10% |
| 11/4/2020 | 0.24% | 0.41% | 0.27% | 0.42% | 0.10% |
| 10/29/2020 | 0.25% | 0.41% | 0.27% | 0.42% | 0.10% |
| 10/22/2020 | 0.25% | 0.42% | 0.28% | 0.43% | 0.10% |
| 10/14/2020 | 0.26% | 0.43% | 0.29% | 0.44% | 0.10% |
No need to stick to low rates: Below are some of the best CD rates from popular banks by term
Compare current CD rates by term for January 2021
Current CD rates: 6-month
- Quontic Bank: 0.60% APY
- Limelight Bank: 0.50% APY
- Emigrant Direct: 0.50% APY
- MySavingsDirect: 0.50% APY
- First Internet Bank: 0.45% APY
See additional best 6-month CD rates
Current CD rates: 1-year
- BrioDirect: 0.65% APY
- Quontic Bank: 0.65% APY
- Live Oak Bank: 0.65% APY
- Ally Bank: 0.60% APY
- Synchrony Bank: 0.60% APY
See additional best 1-year CD rates
Current CD rates: 3-year
- Delta Community Credit Union: 1.05% APY
- Comenity Direct: 0.85% APY
- Navy Federal Credit Union: 0.80% APY
- SchoolsFirst Federal Credit Union: 0.80% APY
- Salem Five Direct: 0.75% APY
See additional best 3-year CD rates
Current CD rates: 5-year
- Delta Community Credit Union: 1.25% APY
- Navy Federal Credit Union: 1.01% APY
- VyStar Credit Union: 1.00% APY
- Suncoast Credit Union: 0.95% APY
- Ally Bank: 0.85% APY
See additional best 5-year CD rates
Note: The APYs (Annual Percentage Yields) shown are as of Jan. 21, 2021.
The APYs for some products may vary by region.
Current CD rates FAQs
What are today’s CD rates?
According to Bankrate’s most recent national survey of banks and thrifts, the average rate for a 1-year CD is 0.21 percent. The average rate for a 5-year CD is 0.35 percent. The average rate for a 1-year jumbo CD is 0.23 percent. The average 5-year jumbo CD rate is 0.36 percent.
The Federal Reserve and CD rates
When the Federal Reserve makes interest rate decisions, the rates that banks offer on CDs can change.
The Fed can choose to raise or lower the federal funds rate. Once the central bank makes a decision to change the rate, banks will generally move CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.
CD rates typically follow the direction of the Federal Reserve closely. For example, in 2020, the Fed made two emergency cuts and CD rates have been declining at some banks to protect their profits.
How are CD interest rates determined?
CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will influence CD rates.
Competition among banks and credit unions will also influence the payout out on their CDs as well as whether the financial institution needs deposits or not. In general, online banks tend to pay higher rates than banks with branches.
Changes in Treasury yields and economic conditions also influence CD rates.
Learn more:
- What is a certificate of deposit?
- Which CD account is best for you?
- See how CD safety can boost your portfolio returns
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