The average yield on a 1-year CD dropped below 1% in November 2009 and remained at that level for roughly 13 years, until December 2022. It wasn't until the following month that rates on 1-year, 2-year, 3-year, 4-year, and 5-year CDs all exceeded 1%.
On average, long-term CDs aren't yet returning rates above 2%, but higher rates can be found among the best CDs offered.
These are the average yields on CDs as of November 2025, with a term length of one year or more.
- Average 1-year CD rate in November 2025: 1.64%
- Average 2-year CD rate in November 2025: 1.42%
- Average 3-year CD rate in November 2025: 1.34%
- Average 4-year CD rate in November 2025: 1.24%
- Average 5-year CD rate in November 2025: 1.34%
History of CD rates by year
CD rates: 2009 to 2014
Average CD rates plummeted heading into 2009 as the Federal Reserve lowered rates to near zero in response to the 2008 financial crisis. CD rates stayed low amid a slow economic recovery and a low-interest-rate environment.
The average yield on a 1-year CD hovered below 0.50% for most of this period, while the average rate on a 5-year CD swung from over 2% during 2009 to 0.75% in 2013.
CD rates: 2015 to 2020
CD yields began to rise in 2017, following interest rate hikes by the Federal Reserve, driven by a strengthening economy. That proved to be short-lived, as rate cuts in 2019 led to a decline in the average national CD rate.
CD rates dropped rapidly in 2020 as the Federal Reserve slashed interest rates in response to the COVID-19 pandemic.
From 2015 to 2022, the average yield on a 1-year CD never exceeded 0.66%, which it hit in March 2019. The lowest average yield on a 1-year CD during that period was recorded 20 months later, in December 2020, at just 0.16%.
The average rate for 5-year CDs experienced a similarly dramatic swing during that time period, dropping from 1.26% in January 2019 to 0.34% in December 2020.
CD rates: 2021 to 2025
CD rates stayed near historic lows in 2021 as the Federal Reserve kept interest rates low. By mid-2022, yields on CDs began to rise as the Federal Reserve started raising interest rates.
In January 2021, the average rate on a 1-year CD was 0.16%. By September 2024, the average rate was 1.88%. For 5-year CDs, the average rate grew from 0.33% to 1.42%.
Beginning in 2023, the 1-year and 2-year CD rates were, on average, higher than the rates for longer-term CDs. This reflects investors and financial institutions' belief that interest rate cuts are likely to occur.
That expectation results in banks offering lower rates on multi-year CDs, and investors are willing to accept them under the assumption that those rates will still be higher than the federal funds rate in the future. Higher demand for longer-term CDs can also push down those rates, while leaving shorter-term rates unchanged.
In 2024, CD rates remained mostly steady as banks balanced gains from mid-2022 rate hikes with investor expectations for future rate cuts. CD rates have remained largely stable in 2025 amid uncertainty about the outlook for inflation and the economy as a whole.
