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. 12:
- 1-year CD rate: 0.14%
- 5-year CD rate: 0.26%
- 1-year jumbo CD rate: 0.16%
- 5-year jumbo CD rate: 0.27%
- Money market account rate: 0.07%
CD rates at many online banks decreased in 2020 after the Federal Reserve lowered the federal funds rate to near-zero in March 2020. Declining Treasury yields may also cause CD rates to decrease. Overall, CD rates have remained stable during the past few months. However, there have been a few rate increases and decreases.
Latest CD rates: 3-month trend
|Date||1-year CD||5-year CD||1-year jumbo||5-year jumbo||Money market account|
There’s no need to stick with low rates. Here are some of the best CD rates by term from popular banks:
Compare current CD rates by term for January 2022
Current CD rates: 6-month
- Quontic Bank: 0.55% APY
- First Internet Bank of Indiana: 0.45% APY
- Limelight Bank: 0.45% APY
- Navy Federal Credit Union: 0.45% APY
- Bethpage Federal Credit Union: 0.40% APY
Current CD rates: 1-year
- Pentagon Federal Credit Union: 0.85% APY
- Live Oak Bank: 0.75% APY
- Comenity Direct: 0.65% APY
- First Internet Bank of Indiana: 0.60% APY
- Sallie Mae Bank: 0.60% APY
Current CD rates: 3-year
- Quontic Bank: 1.10% APY
- Pentagon Federal Credit Union: 1.00% APY
- Comenity Direct: 1.00% APY
- Security Service Federal Credit Union: 0.95% APY
- First Internet Bank of Indiana: 0.80% APY
Current CD rates: 5-year
- Pentagon Federal Credit Union: 1.30% APY
- Quontic Bank: 1.20% APY
- Security Service Federal Credit Union: 1.05% APY
- SchoolsFirst Federal Credit Union: 1.01% APY
- VyStar Credit Union: 1.00% APY
Note: Annual percentage yields (APYs) shown are as of Jan. 13, 2022, and apply to balances of $25,000. 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 one-year CD is 0.14 percent. The average rate for a five-year CD is 0.26 percent. The average rate for a one-year jumbo CD is 0.16 percent. The average five-year jumbo CD rate is 0.27 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. After the Fed made two emergency rate cuts in March 2020, CD rates declined. In recent months, CD rates at top-yielding banks have remained generally stable, with an occasional increase or decrease at some banks.
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 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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