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A certificate of deposit (CD) is a time deposit account in which your money accrues interest at a fixed yield for a set period of time, or term. CD terms typically range from as short as a few months to as long as five years, or even longer. However, if you withdraw your funds before the CD’s term ends, you’ll likely be charged an early withdrawal penalty, which is typically some or all of the interest you’ve accrued.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current national average annual percentage yields (APYs) for this week, according to Bankrate’s most recent survey:
- 1-year CD yield: 1.75 percent APY
- 3-year CD yield: 1.42 percent APY
- 5-year CD yield: 1.42 percent APY
The national average rate for one-year and five-year CDs started to increase in February 2022, driven in part by rising Treasury yields and expectations of Federal Reserve rate increases. Since February 2023, the one-year CD average has been higher than the five-year CD average.
In December 2024, the Fed cut rates by another quarter percentage point, or 25 basis points, bringing the federal funds rate to a target range of 4.25-4.5 percent. This move was preceded by November and September rate cuts. In total, these three cuts have decreased the Fed’s benchmark rate by 100 basis points, or one percentage point.
Competitive CD APYs had been decreasing gradually leading up to the September rate cut, as well as in its wake. Likewise, APYs on some CDs may continue decreasing following the November rate decision. Prior to these two rate cuts, the Fed had held rates at a multi-decade high since July 2023, in an effort to tame inflation — while high-yield CD rates rose to historic highs.
Latest average CD APYs: 3-month trend
Bankrate monitors the national average rates on various CD terms, including:
| Date | 1-year CD | 3-year CD | 5-year CD |
|---|---|---|---|
| 12/16/2024 | 1.75% | 1.42% | 1.42% |
| 12/09/2024 | 1.74% | 1.41% | 1.42% |
| 12/02/2024 | 1.68% | 1.35% | 1.34% |
| 11/25/2024 | 1.74% | 1.40% | 1.41% |
| 11/18/2024 | 1.77% | 1.43% | 1.44% |
| 11/11/2024 | 1.73% | 1.41% | 1.41% |
| 11/04/2024 | 1.75% | 1.41% | 1.42% |
| 10/28/2024 | 1.71% | 1.41% | 1.42% |
| 10/21/2024 | 1.72% | 1.42% | 1.42% |
| 10/14/2024 | 1.72% | 1.40% | 1.41% |
| 10/07/2024 | 1.73% | 1.41% | 1.42% |
| 09/30/2024 | 1.74% | 1.41% | 1.42% |
| 09/23/2024 | 1.76% | 1.41% | 1.42% |
| 09/16/2024 | 1.80% | 1.43% | 1.44% |
How Bankrate calculates the national average
In June 2023, Bankrate updated its methodology that determines the national average CD rates. More than 500 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.
Compare CD rates by term for December 2024
Current 6-month CD rates
- Limelight Bank — 4.65% APY
- Popular Direct — 4.61% APY
- CIBC Bank USA — 4.51% APY
- America First Credit Union — 4.50% APY
- Bask Bank — 4.45% APY
See additional best 6-month CD rates.
Current 1-year CD rates
- TAB Bank – 4.52% APY
- Limelight Bank — 4.50% APY
- Popular Direct – 4.50% APY
- America First Credit Union — 4.45% APY
- First Internet Bank of Indiana — 4.42% APY
See additional best 1-year CD rates.
Current 3-year CD rates
- Popular Direct – 4.25% APY
- America First Credit Union — 4.15% APY
- SchoolsFirst Federal Credit Union — 4.15% APY
- TAB Bank — 4.03% APY
- Bread Savings — 3.90% APY
See additional best 3-year CD rates.
Current 5-year CD rates
- America First Credit Union — 4.25% APY
- SchoolsFirst Federal Credit Union — 4.25% APY
- Popular Direct — 4.25% APY
- Synchrony Bank — 4.00% APY
- TAB Bank — 3.87% APY
See additional best 5-year CD rates.
Note: Annual percentage yields (APYs) shown are as of Dec. 19. Bankrate’s editorial team updates this information weekly. APYs may have changed since they were last updated and may vary by region for some products.
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