Current CD Rates, Sept. 2024: APYs Steadily Drop - NerdWallet (2024)

The best CD rates have largely dropped from around 5% to high 4% annual percentage yields for six-month through one-year terms. The era of 5% APYs on certificates of deposit is starting to end as the Federal Reserve is expected to drop its benchmark rate at the Sept. 17-18 meeting.

Longer-term high-yield CDs, such as three- to five-year terms, have been around 4% for much of this year and are now slipping into 3% territory. Skip down to see current CD rates.

2024 data highlight: minor drops for high-yield CDs so far

CD rates at nearly two dozen online banks and credit unions saw bigger drops in August than they have so far this year. For the median APYs of four popular CD terms, both short- and long-term yields slipped. The biggest change was for one-year CDs at 40 basis points (0.40 percentage point).

In contrast, rate drops from January through July were 20 basis points at most. Shorter-term rates generally remain higher than longer-term rates.

CD rate trends 2024: higher short-term CDs

The trend of shorter-term CD rates being higher than longer-term CD rates continues, both for national averages and among high-yield CDs. While seeing CD rates around mid-4% can be exciting, the term length is also important. You earn less interest with a six-month CD than a one-year CD with the same rate.

Overview: high-yield and national CD rates

Online-only banks and credit unions continue to have the most competitive interest rates on certificates of deposit, but these high-yield CD rates have mostly started to drop as the Federal Reserve plans to lower the federal funds rate. The first Fed rate decrease since 2020 will likely occur in September 2024. See where rates are going in our CD rate forecast.

National average CD rates have also been higher than they’ve been for most of the past decade, though they remain far lower than CDs at online institutions. The gradual rise of online high-yield CD rates started in July 2021, after a relatively low-rate environment in 2020 and early 2021. If the Fed starts to cut its rate this September, as expected, CD rates may drop even more. (See more details about historical CD rates to see more context.)

High-yield CD rates today can be several times the national average of 1.42% APY for five-year terms and the national average of 1.85% APY for one-year terms. Unlike regular savings accounts, most CDs have fixed rates, so you can lock in a higher rate while it lasts.

Here's a look at current CD rates at some online banks and credit unions.

Current CD rates: high-yield and national averages by term

Here’s a sample of three high-yield CD rates per term, compared to the national average, at various online banks and credit unions.