- CD rates have gone up and down many times from 1965 to 2024.
- The highest CD rate recorded in the United States occurred in 1980.
- CD rates have stayed competitive in 2024 as the Federal Reserve waits for inflation to drop closer to 2%.
The best CD rates are now paying 5% or more. But when was the last time CD rates were this competitive?
To help you learn more about how CD rates have fluctuated over time, we've gathered data on historical CD rates from 1965 to 2024. We'll also cover general trends that have occurred throughout history, so you can get a better understanding of why CD rates change.
Historical CD rates: A journey through time
Interest rates as economic indicators
CD rates are impacted by the federal funds rate, which is the interest rate banks use when lending money to each other.
As the central banking system in the U.S., the Federal Reserve manages the federal funds rate.
Generally, the Federal Reserve raises rates to combat inflation and discourage spending, and lowers rates to encourage spending and spur economic growth. When the Federal Reserve raises rates, CD rates rise. Conversely, if rates drop, CD rates also go down.
When the Fed raises rates, it can increase the risk of a recession. In 2022, when the Fed kicked off a series of aggressive rate hikes — 11 in total from March 2022 to July 2023 — it was focused on creating a "soft landing" for the economy. Recent data shows that it looks like the U.S. economy is sticking its soft landing, since inflation has come down without causing runaway unemployment or hampering economic growth.
Historical 90-day CD rates
The following chart shows the interest rates for 3-month or 90-day CDs and is based on data from the Federal Reserve Bank of St. Louis that was last collected on January 12, 2024.
Decade | Lowest Interest Rate | Highest Interest Rate |
| 1965 to 1969 | 4.13% (January 1965) | 8.77% (December 1969) |
| 1970 to 1979 | 3.61% (February 1972) | 13.90% (December 1979) |
| 1980 to 1989 | 5.69% (October 1986) | 18.65% (December 1980) |
| 1990 to 1999 | 3.09% (April 1993) | 8.42% (April 1990) |
| 2000 to 2009 | 0.21% (November 2009) | 6.73% (June 2000) |
| 2010 to 2019 | 0.11% (May 2014) | 2.69% (December 2018) |
| 2020 to 2023 | 0.09% (June 2021) | 5.49% (September 2023) |
Historical 1-year CD rates
The following chart shows monthly interest rates for a 1-year CD from 2021 to June 2024, the only publicly available data from the Fed.
Year | Lowest Interest Rate | Highest Interest Rate |
| 2021 | 0.14% (May to December) | 0.15% (April) |
| 2022 | 0.13% (January) | 1.07% (December) |
| 2023 | 1.28% (January) | 1.86% (December) |
| 2024 | 1.86% (January) | 1.80% (May to June) |
Major eras of CD rate fluctuations
Some of the highest CD rates in history occurred in the late 1970s and early 1980s because the Fed raised rates significantly to combat high inflation.
When the U.S. faced a recession, the Federal Reserve lowered rates to stimulate the economy. As a result, CD rates shifted and dropped during times like the 1981 to 1982 recession, the Gulf War Recession (1990 to 1991), the Great Recession (2007 to 2009), and the coronavirus pandemic.
Recent trends and rising rates
According to data from the St. Louis Federal Reserve, the interest rate for a 3-month CD increased from around 4.61% in January 2023 to 5.32% in December 2023, the latest month for which data is available.
Adrianna Adams, a CFP professional and the head of financial planning at Domain Money, says high inflation has been a driver for a higher interest rate environment.
Inflation has slowly edged down since the beginning of 2024, and the Fed has kept rates steady with a current target range of between 5.25% and 5.50%.
Many economists think general interest rates, and by extension, CD rates, could start to go down toward the end of the year.
"At some point in 2024, we're kind of anticipating some sort of drop in rates. I wouldn't say anything too significant, but it doesn't appear that they're going to go much higher from here," says Adams.
Historical CD rate FAQs
Why were CD rates so high in the 1980s?
The U.S. experienced a severe economic recession which caused exceptionally high inflation in the 1980s. To combat inflation, the central bank raised interest rates, thus making it more expensive for consumers to borrow money but more advantageous to save CDs in and other deposit accounts.
How did the Great Recession impact CD rates?
The Federal Reserve cut interest rates to near-zero, and banks followed suit on deposit accounts.
What's a normal range for CD rates historically?
According to data from the St. Louis Federal Reserve, the average rate for a 3-month CD from 2013 to 2023 was 1.44% and the median was 0.87%.
Can historical CD rates predict future trends?
Not necessarily, but they can indicate how rates might fluctuate during future recessions or periods of high inflation.
Where can I find a chart of historical CD rates?
The Federal Reserve publishes a chart of historical interest rates for 3-month CDs. It currently shows monthly rates from June 1964 through December 2023.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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