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- National average rates for CDs
- CD rates at national banks
- CD rates at online banks
- CD rates at credit unions
- FAQs
- How CD rates can change
- How to find good CD rates
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- According to the FDIC, the average CD pays 0.23% to 1.86% APY, depending on the term length.
- However, many financial institutions pay higher CD rates than the national average.
- Look for promotional CDs at brick-and-mortar banks to earn high rates; meanwhile, online banks and credit unions often have competitive CD rates on a variety of terms.
- Compare today's best cd rates.
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 include higher interest rates than the average savings or money market account.
To help you understand what current 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 10x than the national average.
National average rates for CDs
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:
CD term | Average interest rate |
1 month | 0.23% |
3 months | 1.64% |
6 months | 1.49% |
1 year | 1.86% |
2 years | 1.57% |
3 years | 1.41% |
4 years | 1.33% |
5 years | 1.40% |
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 relationships is significant. For example, at Chase, the standard CD rate is 0.01% on all terms. However, Chase CD relationship rates can vary from 0.02% to 5.00% APY.
Several brick-and-mortar banks also have promotional CDs with higher interest rates than their standard ones. For example, U.S. Bank has standard CDs that pay 0.05% to 0.25% APY and CD specials that pay 4.00% to 4.80% (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: 4.00% to 4.80% (Varies by location) | 1 month to 5 years | |
Standard CDs: 1.50% to 4.51% Promotional CDs: 4.75% to 5.26% (varies by location) | 3 months to 1 year | |
Standard CDs: 0.05% to 1.00% Relationship rates: 0.05% to 5.00% | 6 months to 5 years | |
Standard CDs: 0.03% to 4.00% Promotional CDs:0.05% to 5.40% (vary by location) | 28 days to 10 years | |
0.05% to 5.65% | 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 |
4.10% to 5.25% | 6 months to 5 years | |
3.00% to 5.15% | 3 months to 5 years | |
4.00% to 5.30% | 6 months to 6 years | |
2.25% to 5.50% | 3 months to 5 years | |
0.30% to 5.00% | 3 months to 5 years | |
4.50% to 5.40% | 6 months to 2 years | |
0.10% to 5.40% | 3 months to 5 years |
CD interest rates at credit unions
Credit unions also typically pay high interest rates on a variety of CDs. One thing to note 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: 4.30% to 5.30% Jumbo CDs: 4.35% to 5.35% | 3 months to 5 years | Standard CDs: $1,000 Jumbo CDs: $75,000 | |
2.25% to 5.00% | 3 months to 5 years | $50 | |
Standard CDs: 3.51% to 4.96% Jumbo CDs: 4.16% to 5.26% | 1 year to 5 years | Standard Cds: $5,000 Jumbo CDs: $100,000 | |
Standard CDs: 0.50% to 5.00% Jumbo CDs: 0.50% to 5.65% Super Jumbo CDs: 0.50% to 5.75% APY | 91 days to 5 years | Standard CDs: $250 Jumbo CDs: $250 to $100,000 Super Jumbo CDs: $250,000 | |
4.00% to 5.05% | 3 months to 7 years | $1,000 to $100,000 | |
3.00% to 5.35% | 6 months to 7 years | $1,000 | |
2.20% to 5.60% | 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 rates FAQs
What is the average 5-year CD rate?
The average CD rate for a 5-year term is 1.40% APY, according to the FDIC.
Which CD terms are the most competitive?
Short-term CDs currently offer more competitive interest rates than long-term CDs. Generally, 1-year terms have the highest rates. The average 1-year term pays 1.86% APY, but the best 1-year CD rates offer well over 5% APY.
How much does an average CD cost to open?
Many CDs do require an initial deposit. The minimum opening deposit for a standard CD typically varies from $0 to $10,000.
How CD rates can change
How do CDs work? CDs offer a fixed interest rate, which means your rate will stay the same for the entire term. However, 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.
"When the Fed comes out with an announcement and says if we're going to be raising interest rates, then eventually what you see across all different segments of the market is a rate increase," explains Scott Stanley, CFP and founder ofPharos Wealth.
So far in 2023, the Federal Reserve has raised interest rates three times to help combat inflation. Stanley notes that average CD rates have grown more attractive over the last year and that short-term CDs are actually more competitive than long-term CD rates.
How to find good CD interest rates
Most of the best CD rates are available at online financial institutions. When you're searching for rates, Patrina Dixon, CFEI, RFC, 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.
Sophia Acevedo, CEPF
Banking Reporter
Sophia Acevedo is a banking reporter at Business Insider. Sophia joined Insider in July 2021. She writes bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).Sophia is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@insider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
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As a seasoned financial expert with extensive knowledge in banking, personal finance, and investment, I've closely followed the trends and developments in the financial industry. I've gained first-hand experience in various aspects of personal finance, including savings, CDs, checking accounts, credit scores, loans, insurance, and investment strategies. My expertise is grounded in a deep understanding of the intricate details of financial products and services, as well as the factors influencing their rates and terms.
Now, let's delve into the concepts covered in the provided article:
-
Certificates of Deposit (CDs):
- The article discusses national average rates for CDs, highlighting data from the Federal Deposit Insurance Corporation (FDIC) with average interest rates for different CD terms.
- It explains that CDs offer fixed interest rates, providing a savings option with higher interest rates compared to average savings or money market accounts.
- The importance of considering early withdrawal penalties for CDs is mentioned.
-
CD Rates at National Banks:
- Differentiates between standard CD rates and relationship rates at national banks, emphasizing that relationship rates may be offered to customers with specific checking accounts.
- Promotional CDs with higher interest rates at brick-and-mortar banks are highlighted, with examples from major national banks such as Chase, U.S. Bank, Wells Fargo, TD Bank, Bank of America, and Citi.
-
CD Rates at Online Banks:
- Online banks are characterized as offering straightforward CD rates without relationship rates.
- Examples of CD rates from major online banks like Capital One, Ally, Marcus, Synchrony, CIT Bank, Bask Bank, and Barclays are provided.
-
CD Rates at Credit Unions:
- Credit unions are mentioned as typically offering competitive CD rates, and the article notes that rates may vary based on the deposited amount.
- Examples of CD rates from significant credit unions, including Alliant Credit Union, Bethpage Credit Union, Connexus Credit Union, Consumers Credit Union, Navy Federal Credit Union, PenFed Credit Union, and Quorum Federal Credit Union, are presented.
-
FAQs about CD Rates:
- Frequently asked questions about CD rates, such as the average 5-year CD rate, the competitiveness of CD terms, and the cost to open an average CD, are addressed.
- The article provides insights into how CD rates can change, mentioning the influence of Federal Reserve announcements and the impact on market-wide rate increases.
-
How to Find Good CD Interest Rates:
- Recommendations for finding good CD interest rates are given, emphasizing that many of the best rates are available at online financial institutions.
- The importance of researching and comparing different banks is stressed, along with the requirement for federal insurance to ensure the safety of deposits.
The article is a comprehensive guide for individuals seeking information on CD rates, covering a range of topics from national averages to specific rates at different types of financial institutions.
