Morsa Images/Getty Images; Illustration by Austin Courregé/Bankrate
A certificate of deposit (CD) is a fixed-term savings account that pays a fixed rate of interest on money you deposit over a set period of time. CD terms usually range from a few months to five years or longer. However, if you withdraw your funds before the CD's term ends, you'll likely be assessed an early-withdrawal penalty, which usually means some or all of the accrued interest will be deducted.
Below you'll find current CD interest rates from Bankrate, as well as recent interest rate trends: According to Bankrate's latest research, here are the current national average annual percentage yields (APYs) for this week:
1-year CD yield: 1.80% APY 3-year CD yield: 1.42% APY 5-year CD yield: 1.43% APY
The national average interest rates for one- and five-year CDs began to rise in February 2022, due in part to rising Treasury yields and expectations of interest rate hikes from the Federal Reserve. Since February 2023, the average interest rate for a one-year CD has exceeded the average interest rate for a five-year CD.
The Federal Reserve raised interest rates seven times in 2022: in March, May, June, July, September, November, and December. It also raised interest rates again in 2023: in February, March, May, and July.
This will be the Fed's first rate hike since 2018, when it sought 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 06/27/2024 1.80% 1.42% 1.43% 06/20/2024 1.79% 1.42% 1.43% 06/10/2024 1.80% 1.43% 1.44% 06/03/2024 1.77% 1.39% 1.40% 05/27/2024 1.82% 1.42% 1.43% 05/20/2024 1.79% 1.40% 1.40% 05/13/2024 1.77% 1.39% 1.39% 05/06/2024 1.77% 1.42% 1.43% April 29, 2024 1.73% 1.40% 1.41% April 22, 2024 1.74% 1.41% 1.42% April 15, 2024 1.74% 1.41% 1.42% April 8, 2024 1.74% 1.41% 1.42% April 1, 2024 1.73% 1.41% 1.41% March 25, 2024 1.74% 1.40% 1.41%
How Bankrate Calculates the National Average
In June 2023, Bankrate updated its methodology for determining the national average CD interest rate. To arrive at the national average, more than 500 banks and credit unions are surveyed each week, including those with broad availability and high-yield offers, as well as some of the largest banks in the country.
Compare CD interest rates by term for June 2024
Current 6-Month CD Rates
Basque Bank — 5.35% APY Popular Direct — 5.35% APY Vio Bank — 5.25% APY America First Credit Union — 5.25% APY First Internet Bank of Indiana — 5.13% APY
See top interest rates for additional 6-month CDs.
Current 1-year CD interest rates
CIBC Bank USA — 5.36% APY Bask Bank — 5.30% APY Popular Direct — 5.30% APY First Internet Bank of Indiana — 5.26% APY Limelight Bank — 5.25% APY
See additional Best 1-Year CD Interest Rates .
Current 3-year CD interest rates
First Internet Bank of Indiana — 4.61% APY Popular Direct — 4.50% APY Quantic Bank — 4.40% APY America First Credit Union — 4.35% APY Lending Club Bank — 4.30% APY
Plus see the best 3-year CD rates.
Current 5-Year CD Interest Rates
Indiana First Internet Bank — 4.50% APY School First Federal Credit Union — 4.35% APY Quantic Bank — 4.30% APY Popular Direct — 4.30% APY America First Credit Union — 4.20% APY
Plus see the best 5-year CD rates .
Note: The Annual Percentage Yield (APY) displayed was updated between June 27 and July 3. Bankrate's editorial team verifies this information regularly, usually weekly. APYs may have changed since the last update and may vary by region for some products. Bankrate's listings include only FDIC banks or NCUA credit unions. Listings may be subject to new funding.
Current CD Rates FAQ
How do Federal Reserve decisions affect CD interest rates?
Federal Reserve interest rate decisions can affect CD rates. When the central bank decides to change interest rates, competing banks typically move their CD yields in the same direction. Broader macroeconomic conditions also affect CD rates. For example, since March 2022, the national average for a one-year CD has mostly risen or remained flat.
How are CD interest rates determined?
CD interest rates are determined by several factors. The Federal Reserve's decision on the federal funds rate can affect CD interest rates. Competition among banks and credit unions also affects how much a CD will pay and whether a financial institution requires deposits. In general, online banks tend to pay higher interest rates than banks with branches. Changes in Treasury yields and economic conditions also affect CD interest rates.