Morsa Images/Getty Images; Illustration: Austin Krege/Bankrate
A certificate of deposit (CD) is a fixed-rate deposit account that earns interest at a fixed rate for a set term or period of time. CD terms typically range from as little as a few months to as long as five years or more. However, if you withdraw your funds before the CD’s term ends, you may be charged an early withdrawal penalty, which is typically a portion or all of the interest accrued.
Check out current CD rates and recent interest rate trends from Bankrate below. According to Bankrate’s latest research, this week’s national average annual percentage yield (APY) is:
1-year CD yield: 1.72% (APY) 3-year CD yield: 1.42% (APY) 5-year CD yield: 1.42% (APY)
The national average interest rate on one-year and five-year CDs began rising in February 2022, driven in part by rising U.S. Treasury yields and expectations for Federal Reserve rate hikes. Since February 2023, the 1-year CD average has exceeded the 5-year CD average.
The Federal Reserve will cut interest rates by 0.5 percentage point in September 2024, bringing the federal funds rate into its target range of 4.75% to 5%. Yields on competing CDs had been steadily declining in the months leading up to the rate cut. APYs for some CDs may fall further in the weeks or months following the latest interest rate decision. Prior to the rate cut, the Fed had kept interest rates at the highest level in 23 years, since July 2023, in an effort to curb high inflation.
Latest Average CD APY: 3 Month Trend
Bankrate monitors national average interest rates for a variety of CD terms, including:
Date 1 year CD 3 year CD 5 year CD 10/21/2024 1.72% 1.42% 1.42% 10/14/2024 1.72% 1.40% 1.41% 10/07/2024 1.73% 1.41% 1.42% 09/30/ 2024 1.74 % 1.41% 1.42% September 23, 2024 1.76% 1.41% 1.42% September 16, 2024 1.80% 1.43% 1.44% September 9, 2024 1.78% 1.41% 1.42% September 2, 2024 1 .83 % 1.43% 1.43 % 2024/08/26 1.81% 1.42% 1.43% 2024/08/19 1.80% 1.43% 1.44% 2024/08/12 1.83% 1.45% 1.45% 2024/08/05 1.84% 1.4 5% 1.45% 2024 September 2024 1.81% 1.44% 1.44% July 22, 2024 1.81% 1.42% 1.43%
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology for determining the national average CD rate. More than 500 banks and credit unions are surveyed weekly to calculate the national average. Some of these financial institutions include some of the country’s largest banks, as well as institutions that are widely available and offer high yields.
Compare CD prices for October 2024 by period
Current 6-month CD pricing
Bank5 Connect — 4.95% APY Bask Bank — 4.70% APY LendingClub Bank — 4.70% APY Barclays Bank — 4.65% APY Limelight Bank — 4.65% APY
See the best prices for other 6-month CDs.
Current 1-year CD rate
CIBC Bank USA — 4.56% APY America First Credit Union — 4.50% APY Limelight Bank — 4.50% APY Live Oak Bank — 4.50% APY Bask Bank — 4.40% APY
See other best prices for 1-year CDs.
Current 3-year CD rate
SchoolsFirst Federation Credit Union — 4.20% APY America First Credit Union — 4.00% APY Limelight Bank — 3.95% APY Synchrony Bank — 3.90% APY LendingClub — 3.90% APY
Check out the best prices for other 3-year CDs.
Current 5-year CD rate
SchoolsFirst Federation Credit Union — 4.35% APY Synchrony Bank — 4.00% APY America First Credit Union — 3.90% APY Marcus by Goldman Sachs — 3.80% APY Alliant Credit Union — 3.65% APY
See other 5-year best CD rates.
Note: Annual percentage yield (APY) shown is as of October 24th. Bankrate’s editorial team updates this information weekly. APY may have changed since it was last updated and may vary by region for some products.
Current CD Rate FAQs
How will the Fed’s decisions affect CD rates?
caret down icon
The Fed’s interest rate decisions can affect CD interest rates. When a central bank decides to change interest rates, competing banks typically move their CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.
How is the interest rate on a CD determined?
caret down icon
CD rates are determined by several factors. Decisions the Fed makes regarding the federal funds rate are likely to affect CD rates. Competition among banks and credit unions affects not only whether financial institutions require deposits but also CD payments. In general, online banks tend to pay higher interest rates than banks with branch offices. Changes in government bond yields and economic conditions also affect CD rates.
