What is the average interest rate for CDs?

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• According to the FDIC, the average CD pays 0.20% to 1.72% 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 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 4.50% 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 U.S. Bank Standard CD - APY APY and CD specials that pay U.S. Bank CD Special - APY APY.

Here are the CD rates for standard and promotional CDs at some of the biggest national banks:

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: 

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:

Average CD rates FAQs

What is the average 5-year CD rate? 

The average CD rate for a 5-year term is 1.37% 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 1.72% 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 of Pharos 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.