Average Bank CD Rates: Last 10 Years of Data

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: CD rates fell near zero after 2008 and climbed back above 5% in 2023. See year-by-year average bank CD rates over the last decade and what they mean for savers. Certificates of deposit, also known commonly as bank CDs , are one of the oldest and most traditional types of investments offered in America today. They are also among the most conservative investments in terms of loss risk. You can find CDs available at financial institutions such as banks and credit unions across the country. While deciding whether to buy a bank CD has many factors to consider, the biggest one that CD customers look at is the annual interest rate that the CD pays. How much will your CD rate be? That will depend on a number of things, including how long you commit to keep money in the CD and how big your deposit might be. Here’s a quick rundown of the basics of CDs and a look at what CD rates have been over the past 10 years, from 2009 to 2020. How Bank CDs Work A certificate of deposit (CD) is a type of investment that is offered by almost all financial institutions. Although CDs first originated from banks, you can also find them at many brokerage firms and private investment firms. A certificate of deposit is an arrangement where the customer gives the financial institution a certain amount of money (for instance, a deposit of $10,000). In exchange, the institution promises to pay a set rate of interest on this money for a set period of time. CDs are popular with risk-minded investors because they are FDIC insured. This means that if the financial institution were to go bankrupt, the Federal Deposit Insurance Corporation would step in and refund each customer’s money for up to $250,000 per account. CD rates are almost always higher than savings account or money market account rates, because they aren’t liquid like those accounts are. Customers who withdraw some or all of their money from a CD before it matures are usually assessed a penalty that is deducted from the amount withdrawn. This is similar to how an annuity surrender charge can work. Historical Average CD Rates, 2009 to 2020 So, what have banks paid for CD interest rates for the last 10 years? The data below is for regular bank certificates of deposit, or CDs with deposits of less than $100,000. In the data bel