Personal Finance Banking Certificates of Deposit
Written by Sophia Acevedo; edited by Laura Grace Tarpley
Updated
- 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% APY 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 4.20% to 5.05% (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: 4.20% to 5.05% (Varies by location) | 1 month to 5 years |
Wells Fargo | Standard CDs: 1.50% to 4.51% Promotional CDs: 4.25% to 5.01% (varies by location) | 3 months to 1 year |
TD Bank | Standard CDs: 0.05% to 1.00% Relationship rates: 0.05% to 5.00% | 6 months to 5 years |
Bank of America | Standard CDs: 0.03% to 4.00% Promotional CDs:0.05% to 4.75% (vary by location) | 28 days to 10 years |
Citi | 0.05% to 5.25% | 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 | 3.90% to 5.00% | 6 months to 5 years |
Ally | 3.00% to 4.50% | 3 months to 5 years |
Marcus | 3.90% to 5.10% | 6 months to 6 years |
Synchrony | 0.25% to 5.10% | 3 months to 5 years |
CIT Bank | 0.30% to 3.50% | 3 months to 5 years |
Bask Bank | 4.75% to 5.35% | 6 months to 2 years |
Barclays | 0.10% to 5.00% | 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 |
Alliant Credit Union | Standard CDs: 4.00% to 5.15% Jumbo CDs: 4.05% to 5.20% | 3 months to 5 years | Standard CDs: $1,000 Jumbo CDs: $75,000 |
Bethpage Credit Union | 2.25% to 5.00% | 3 months to 5 years | $50 |
Connexus Credit Union | Standard CDs: 3.41% to 4.91% Jumbo CDs: 3.56% to 5.06% | 1 year 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 5.20% 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 |
Navy Federal Credit Union | 2.75% to 4.85% | 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 5.10% | 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 a good CD rate right now?
A good CD rate right now is around 5% APY. You can find 3-month, 6-month, 1-year, 18-month, 2-year, and 3-year terms paying above 5% interest on CDs.
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?
The average CD has a $1,000 minimum opening deposit requirement. Many CDs do require an initial deposit, though.
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.
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.
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, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.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 circ*mstances 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.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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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.
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