- According to the FDIC, the average CD pays 0.23% to 1.84% APY, depending on the term length.
- However, many financial institutions pay higher CD rates than the national average.
- Online banks and credit unions often have competitive CD rates on a variety of terms.
A CD can be a great savings option if you're looking to lock money away for a few months or years. While these fixed-interest accounts have an early withdrawal penalty to consider, they often provide higher interest rates than the average savings or money market account.
To help you understand what current average CD rates look like, we've gathered information on national CD rates, as well as rates from popular financial institutions. The best CDs can offer more than 15 times the national average rate.
National average rates for CDs
Certificates of deposit (CDs) are a type of savings account that offer a fixed interest rate, which means your rate will stay the same as long as you leave your money untouched until the maturity date.
The Federal Deposit Insurance Corporation, a government agency that oversees banks, keeps track of average interest rates paid on CDs. This data is updated monthly and includes both banks and credit unions.
Here's the average interest rate for a CD with a minimum deposit of $10,000, according to data from the FDIC as of September 2024:
CD term | Average interest rate |
1 month | 0.24% |
3 months | 1.55% |
6 months | 1.81% |
1 year | 1.88% |
2 years | 1.55% |
3 years | 1.43% |
4 years | 1.35% |
5 years | 1.42% |
Factors impacting average CD rates
Economic conditions
Bank interest rates, in general, can fluctuate. This means that once a CD term ends, the rate offered for renewing the account may not be the same. Why? Because CD rates are influenced by what the Federal Reserve does.
At the September Fed meeting, the Federal Reserve cut interest rates for the first time in four years. It's also likely that Fed may cut rates more in the future as well.
Even though CD rates are declining, financial experts have strategies to help you retain high interest rates. For example, you can build a CD ladder or open a high-yield savings account.
CD terms
CDs come in a variety of terms, often ranging from a few months to several years. The term length is hugely influential when it comes to the APY offered.
Broadly speaking, when financial institutions expect rates to go down in the future, they will offer more competitive rates on CDs that mature within a year or less. When institutions expect the opposite—that rates will increase in the future—they may offer more competitive rates on long-term CDs to lock customers into a lower rate.
Bank competition
Financial institutions are continually competing for customers. While online banks and credit unions typically have lower overhead costs, allowing them to pass more savings on to customers and members, you may still find good deals at traditional banks that offer promotions or relationship rates to loyal customers.
Sometimes, institutions will offer higher rates on larger balances, known as jumbo CDs, to draw in wealthy clientele.
Where to find the best average CD rates
When you're searching for rates, Patrina Dixon, a financial expert and owner of P. Dixon Consulting, LLC, says it's best to research a variety of banks and compare different options.
Dixon also points out that federal insurance should be a requirement. Up to $250,000 per depositor, per category, is safe in a CD at an FDIC-insured bank or NCUA-insured credit union.
"Make sure that your money is FDIC-insured. If you're depositing $1,000 and the institution is FDIC-insured, that dollar amount is within the amount of money that the government will insure. You get your money should anything happen to the bank," says Dixon.
CD interest rates at national banks
When viewing CD rates at national banks, make sure you know the difference between standard rates and relationship rates.
Relationship rates are generally offered to customers who have a specific checking account. If you don't qualify for a relationship rate, you'll earn the standard CD rate.
At some banks, the distinction between standard rates and relationship rates is significant. For example, at Chase, the standard CD rate is 0.01% APY on all terms. However, Chase CD relationship rates can vary from 0.02% to 4.75% APY.
Several brick-and-mortar banks also have promotional CDs with higher interest rates than their standard ones. For example, Wells Fargo has standard CDs that pay 1.50% to 2.51% APY and CD specials that pay 3.75% to 4.76% (varies by location) APY.
Here are the CD rates for standard and promotional CDs at some of the biggest national banks:
Bank | CD Rates (APY) | Terms Available |
Standard CDs: 0.01% Relationship rates: 0.02% to 5.00% | 1 month to 10 years | |
Standard CDs: 0.05% to 0.25% Promotional CDs: 3.10% to 4.00% (Varies by location) | 1 month to 5 years | |
Standard CDs: 1.50% to 2.51% Promotional CDs: 3.75% to 4.76% (varies by location) | 3 months to 1 year | |
Standard CDs:1.00% Relationship rates: 3.00% to 5.00% | 6 months to 5 years | |
Standard CDs: 0.03% to 4.00% Promotional CDs:0.05% to 4.60% (vary by location) | 28 days to 10 years | |
0.05% to 4.65% | 3 months to 5 years |
CD interest rates at online banks
Online banks are more straightforward when it comes to CDs. These typically offer competitive CD rates on a variety of terms, and there aren't relationship rates.
Here are the interest rates for CDs at some of the biggest online banks:
Bank | CD Rates (APY) | Terms Available |
3.50% to 4.10% | 6 months to 5 years | |
2.90% to 4.20% | 3 months to 5 years | |
3.60% to 4.10% | 6 months to 6 years | |
0.25% to 4.10% | 3 months to 5 years | |
0.30% to 3.50% | 3 months to 5 years | |
3.75% to 4.65% | 6 months to 2 years | |
0.10% to 4.25% | 3 months to 5 years |
CD interest rates at credit unions
Credit unions also typically pay high interest rates on a variety of CDs, which they often call share certificates.
One thing to note that is common at credit unions is that the interest rate may vary depending on how much money you deposit. For example, at Alliant Credit Union, you could earn a higher interest rate on select CDs with a $75,000 minimum opening deposit.
Here are the CD rates for standard CDs at some of the biggest credit unions:
Bank | CD Rates (APY) | Terms Available | Minimum Balance Requirements |
Standard CDs: 3.10% to 4.25% Jumbo CDs: 3.10% to 4.30% | 3 months to 5 years | Standard CDs: $1,000 Jumbo CDs: $75,000 | |
1.75% to 4.25% | 3 months to 5 years | $50 | |
Standard CDs: 3.11% to 3.55% Jumbo CDs: 3.21% to 3.65% | 10 months to 5 years | Standard CDs: $5,000 Jumbo CDs: $100,000 | |
Standard CDs: 0.50% to 4.25% Jumbo CDs: 0.50% to 4.35% Super Jumbo CDs: 0.50% to 5.20% APY | 91 days to 5 years | Standard CDs: $250 Jumbo CDs: $250 to $100,000 Super Jumbo CDs: $250,000 | |
2.15% to 4.35% | 3 months to 7 years | $1,000 to $100,000 | |
3.00% to 3.80% | 6 months to 7 years | $1,000 | |
2.20% to 4.85% | 3 months to 5 years | $1,000; Earn an additional 0.10% APY on a Term Account with a $100,000 minimum deposit |
Average CD rate FAQs
How do current average CD rates compare to savings account rates?
A good CD rate right now is around 4% to 5% APY. You can many different terms offering these rates. You can also find several high-yield savings accounts paying 5% or more, but that rate can change at any time.
Are average CD rates the same as the best CD rates?
Average CD rates are currently between 0.23% to 1.84%, but many banks and credit unions offer CDs paying substantially more. The best CD rates are around 4% to 5% APY on short-term CDs with maturity dates of a year or less.
How often do average CD rates change?
Average CD rates by bank can fluctuate daily based on economic factors and decisions by the Federal Reserve. Opening a CD means you lock in a rate for the specified term length.
Should I lock in a CD now or wait for rates to rise?
It depends on your financial goals and risk tolerance, however, it's unlikely rates will rise any time soon. Since short-term CDs are currently paying more than long-term CDs, you won't have to give up access to your money for too long to get a great return.
What are CD laddering strategies?
CD laddering is a strategy that allows you to mitigate the risk of interest rate volatility. It involves buying multiple CDs with various maturity dates, from several months to years, and spreading your savings among them. If rates go up and your CD matures, you'll have the opportunity to renew it at a higher rate. If rates go down, you will still have some money locked in at a higher rate in a longer-term CD.