Average CD Rates: Current Trends and Finding Top Offers (2024)

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

  • According to the FDIC, the average CD pays 0.24% to 1.88% 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

Chase

Standard CDs: 0.01%

Relationship rates: 0.02% to 5.00%

1 month to 10 years

U.S. Bank

Standard CDs: 0.05% to 0.25%

Promotional CDs: 3.55% to 4.50% (Varies by location)

1 month to 5 years

Wells Fargo

Standard CDs: 1.50% to 2.51%

Promotional CDs: 3.75% to 4.76% (varies by location)

3 months to 1 year

TD Bank

Standard CDs:1.00%

Relationship rates: 3.00% to 5.00%

6 months to 5 years

Bank of America

Standard CDs: 0.03% to 4.00%

Promotional CDs:0.05% to 4.60% (vary by location)

28 days to 10 years

Citi

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

Capital One

3.50% to 4.30%

6 months to 5 years

Ally

3.00% to 4.60%

3 months to 5 years

Marcus

3.90% to 4.50%

6 months to 6 years

Synchrony

0.25% to 4.80%

3 months to 5 years

CIT Bank

0.30% to 3.50%

3 months to 5 years

Bask Bank

4.00% to 5.00%

6 months to 2 years

Barclays

0.10% to 5.10%

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

Alliant Credit Union

Standard CDs: 4.00% to 4.60%

Jumbo CDs: 4.05% to 4.75%

3 months to 5 years

Standard CDs: $1,000

Jumbo CDs: $75,000

Bethpage Credit Union

1.75% to 4.75%

3 months to 5 years

$50

Connexus Credit Union

Standard CDs: 3.91% to 4.65%‍

Jumbo CDs: 4.01% to 4.75%‍

10 months to 5 years

Standard CDs: $5,000

Jumbo CDs: $100,000

Consumers Credit Union

Standard CDs: 0.50% to 5.00%

Jumbo CDs: 0.50% to 5.05%

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

Navy Federal Credit Union

2.45% to 4.75%

3 months to 7 years

$1,000 to $100,000

PenFed Credit Union

3.00% to 4.00%

6 months to 7 years

$1,000

Quorum Federal Credit Union

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 0.24% to 1.88%, 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.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

  • Bank accounts
  • Savings and CD rate trends
  • Budgeting
  • Saving
  • How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

Top Offers From Our Partners

Average CD Rates: Current Trends and Finding Top Offers (2)

Western Alliance Bank High-Yield Savings Premier Take advantage of today's rates and earn 5.11% APY on your entire account balance

The annual percentage yield (APY) is accurate as of 9/26/2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

Average CD Rates: Current Trends and Finding Top Offers (2024)

References

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Manual Maggio

Last Updated:

Views: 5883

Rating: 4.9 / 5 (49 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Manual Maggio

Birthday: 1998-01-20

Address: 359 Kelvin Stream, Lake Eldonview, MT 33517-1242

Phone: +577037762465

Job: Product Hospitality Supervisor

Hobby: Gardening, Web surfing, Video gaming, Amateur radio, Flag Football, Reading, Table tennis

Introduction: My name is Manual Maggio, I am a thankful, tender, adventurous, delightful, fantastic, proud, graceful person who loves writing and wants to share my knowledge and understanding with you.