History of Certificate of Deposit Rates: CDs have long been a go-to choice for people in the U.S. who want steadier returns. Still, the rates attached to CDs do not stay the same for years at a time. What one saver saw can be totally different from what another saver earned.
In the 1980s, rates were much higher. Later, after the Great Recession, many CD offers fell to under 1% for a stretch. Then the COVID-19 years brought another shift. The pattern matches bigger moves in the U.S. economy. High inflation and a recession marked the early years of the 1980s. Rates later eased into the near-zero range during the 2010s. In 2022 and 2023, CD rates moved up again after the Federal Reserve raised its rates.
CD Rates In The 1980s
For CD savers, the mid-1980s felt nothing like later decades. Bankrate’s old figures show the national average one-year CD APY started in 1984 at about 9.86%. It rose to just over 11% in the summer. After that, it slipped later in the year.
Those figures sound huge now. But they came right after an even more extreme moment. Bankrate points to Federal Reserve history. It shows three-month CDs hit around 18.3% in early May 1981. Inflation was high, and policy was tough, so interest rates jumped to levels that most people do not usually see today.
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1990s
CD rates declined during the early 1990s as the U.S. economy went through another recession. Historical secondary-market CD data from the Federal Reserve shows six-month CD rates averaging 8.17% in 1990, falling to 3.28% in 1993 before climbing again during the middle of the decade.
As the economy strengthened, CD yields recovered. By the mid-to-late 1990s, rates generally moved back into a range that offered savers meaningful returns without the extreme inflation and interest-rate conditions of the early 1980s.
The 2000s
The beginning of the 2000s brought another major shift. After the dot-com boom began to fade and the economy slowed, the Federal Reserve lowered interest rates. Bankrate says the average one-year CD yield fell below 2% in 2002.
Rates recovered during the middle of the decade as the Federal Reserve raised interest rates again. However, the financial crisis of 2007-2009 changed the landscape completely.
By September 2009, Bankrate reported that the average one-year CD paid less than 1% APY, while average five-year CDs were only slightly above 2%. The Federal Reserve had slashed its benchmark interest rate in an effort to support the economy, and banks had little reason to pay high rates to attract deposits.
History of Certificate of Deposit Rates: 2010s
For many savers, the years following the Great Recession were among the most disappointing periods for CDs.
Bankrate reports that in June 2013, average yields on one-year CDs were just 0.24% APY, while five-year CDs averaged 0.77% APY.
One reason was that banks were already flush with deposits and did not need to compete aggressively for additional money. At the same time, the Federal Reserve kept interest rates exceptionally low for years.
CD rates finally began to improve after the Fed started gradually raising its benchmark rate in December 2015. By the end of the decade, savers were seeing better offers, although rates still remained well below the levels that had been common in the 1980s and 1990s.
2020 and 2021
CD rates were starting to improve, then COVID-19 hit and the trend flipped fast. In March 2020, the Federal Reserve cut rates in an emergency move. Its main rate was pushed to near zero. After that, CD yields dropped soon after.
Bankrate says that between June 2020 and June 2021, the average one-year CD rate fell. It went from 0.41% APY down to 0.17% APY. During the same stretch, average five-year CD yields also slid. They dropped from 0.60% to 0.31% APY.
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History of Certificate of Deposit Rates: 2022 and 2023
After the pandemic, inflation rose and things shifted again. The Federal Reserve then began rapid rate increases. Bankrate notes that the benchmark rate was raised 11 times during 2022 and 2023. Banks followed suit and adjusted deposit rates too. This was most clear in higher-yield CDs.
By September 2023, Bankrate reported new national averages. One-year CDs were at 1.92% APY on average. Five-year CDs averaged 1.29% APY. The top CD deals for consumers were often well above those national numbers.
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Historical CD Rates In 2024 and 2025
After reaching a recent-cycle peak in late 2023, CD yields began to gradually soften. The Federal Reserve cut its benchmark rate three times in 2024 and three more times in 2025, according to Bankrate’s historical review. As a result, average CD rates moved lower, although many competitive CDs continued to offer considerably better returns than the national average.
Federal Reserve Bank of St. Louis data based on Bankrate’s national index shows the average one-year CD rate generally hovered around the high-1% to roughly 2% range during 2025, ending the year near 1.93%.
Latest 2026 Rates
The national average CD rates suggest a steady picture over the past year. Bankrate’s rate survey dated May 9, 2026, lists these figures:
- One-year CDs: 1.96% APY. This is down from 1.99% about a year earlier.
- Five-year CDs: 1.70% APY. That is close to the 1.69% from a year ago.
What Can Investors Learn From Four Decades Of CD Rate History?
The biggest lesson is that CD rates move in cycles. In the 1980s, savers could find double-digit returns. After the Great Recession, rates spent years below 1%. The pandemic pushed them close to zero again before inflation and Federal Reserve tightening produced a rapid rebound in 2022 and 2023.
Timing can make a real difference in CD results. If someone locks cash into a long CD right before rates go up, the return may end up lower than what later CDs pay. But if a person secures a high long rate before a round of cuts, the CD yield can hold up for the full term. Some savers avoid the all-in move by using a CD ladder. They split their money across several CDs, each one maturing at a different time.
One example is the Bankrate Monitor National Index. It follows rate changes using a weekly survey. The index is meant to show trends in rates in a comparable way. The method looks at banks and thrifts in major U.S. markets. It also tracks CD APYs for consumers opening qualifying accounts.
