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, or term. 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: 1.83% APY
- 3-year CD yield: 1.45% annual interest rate
- 5-year CD yield: 1.45% annual interest rate
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 |
|---|---|---|---|
| August 12, 2024 | 1.83% | 1.45% | 1.45% |
| August 5, 2024 | 1.84% | 1.45% | 1.45% |
| July 29, 2024 | 1.81% | 1.44% | 1.44% |
| July 22, 2024 | 1.81% | 1.42% | 1.43% |
| July 15, 2024 | 1.81% | 1.42% | 1.43% |
| July 8, 2024 | 1.79% | 1.41% | 1.40% |
| July 1, 2024 | 1.81% | 1.43% | 1.43% |
| June 24, 2024 | 1.80% | 1.42% | 1.43% |
| June 17, 2024 | 1.79% | 1.42% | 1.43% |
| June 10, 2024 | 1.80% | 1.43% | 1.44% |
| June 3, 2024 | 1.77% | 1.39% | 1.40% |
| May 27, 2024 | 1.82% | 1.42% | 1.43% |
| May 20, 2024 | 1.79% | 1.40% | 1.40% |
| May 13, 2024 | 1.77% | 1.39% | 1.39% |
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 August 2024
Current 6-Month CD Rates
America First Credit Union — 5.25% APR
Quantic Bank — 5.10% annual interest rate
Goldman Sachs Marcus — 5.10% annual interest rate
Bank of the Basque Country — 5.10% annual interest
Bank5 Connect — 5.05% annual interest rate
Plus see the best 6-month CD rates .
Current 1-year CD interest rates
Limelight Bank — 5.15% APR
First Internet Bank of Indiana — 5.15% APR
Bread Savings — Annual interest rate 5.15%
America First Credit Union — 5.10% APR
Sallie Mae Bank — 5.10% APR
See additional Best 1-Year CD Interest Rates .
Current 3-year CD interest rates
First Internet Bank of Indiana — 4.45% APR
Quantic Bank — 4.40% annual interest rate
America First Credit Union — 4.35% APR
TAB Bank — 4.35% annual interest rate
Lending Club Bank — 4.30% APR
Plus see the best 3-year CD rates.
Current 5-Year CD Interest Rates
School First Federal Credit Union — 4.35% APR
First Internet Bank of Indiana — 4.35% APR
Quantic Bank — 4.30% annual interest rate
America First Credit Union — 4.20% APR
Bread Savings — Annual interest rate 4.05%
Plus see the best 5-year CD rates .
Note: The Annual Percentage Yield (APY) shown isAugust 15th and August 22nd. 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 lists include only FDIC banks or NCUA credit unions. The list may require new funds.
