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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 the week of Sept. 25:
- 1-year CD yield: 1.78% APY
- 3-year CD yield: 1.39% APY
- 5-year CD yield: 1.44% 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
There’s no need to stick with low rates. Here are some of the best CD rates by term from popular banks:
|Date||1-year CD||3-year CD||5-year CD|
How we calculate the national average interest rates
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 September 2023
Current CD rates: 6-month
- Bank5 Connect—5.50% APY
- Vio Bank—5.35% APY
- Popular Direct—5.35% APY
- America First Credit Union—5.30% APY
- First Internet Bank of Indiana—5.22% APY
Current CD rates: 1-year
- CIBC Bank USA—5.62% APY
- Bread Savings—5.60% APY
- Popular Direct—5.60% APY
- Santander Bank—5.50% APY
- Limelight Bank—5.50% APY
Current CD rates: 3-year
- Bread Savings—4.85% APY
- First Internet Bank of Indiana—4.75% APY
- Popular Direct—4.75% APY
- Barclays Bank—4.50% APY
- Alliant Credit Union—4.45% APY
Current CD rates: 5-year
- Bread Savings—4.65% APY
- Popular Direct—4.65% APY
- First Internet Bank of Indiana—4.59% APY
- Barclays Bank—4.50% APY
- SchoolsFirst Federal Credit Union—4.45% APY
Note: Annual percentage yields (APYs) shown are as of Sept. 28, 2023, and apply to balances of $10,000. APYs for some products may vary by region.
Current CD rates FAQs
According to Bankrate’s most recent national survey of banks and thrifts, the average yield is 1.78 percent for a one-year CD, 1.39 percent for a three-year CD and 1.44 percent for a five-year CD.
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.