Morsa Images/ Getty Images; Illustration by Austin Courregé/Bankrate
A certificate of deposit (CD) is a time deposit account in which your money accrues interest at a fixed yield for a set period of time, or term. CD terms typically range from as short as a few months to as long as five years, or even longer. However, if you withdraw your funds before the CD’s term ends, you’ll likely be charged an early withdrawal penalty, which is typically some or all of the interest you’ve accrued.
Find current CD rates and recent interest rate trends from Bankrate below. Here are the current national average annual percentage yields (APYs) as of Thursday, June 05, 2025, according to Bankrate’s most recent survey:
- 1-year CD yield: 2 percent APY
- 3-year CD yield: 1.7 percent APY
- 5-year CD yield: 1.72 percent APY
The national average rate for one-year and five-year CDs started to increase in February 2022, driven in part by rising Treasury yields and expectations of Federal Reserve rate increases. Since February 2023, the one-year CD average has been higher than the five-year CD average.
In May 2025, officials chose to hold the federal funds rate at a target range of 4.25-4.5 percent. They’ve left this benchmark rate unchanged so far this year, after bringing the target range down in late 2024 by a total of one percentage point, or 100 basis points.
Competitive CD APYs had been decreasing gradually leading up to the Fed’s September 2024 rate cut, as well as in its wake. Prior to the three 2024 rate cuts, the Fed had held rates at a multi-decade high since July 2023, in an effort to tame inflation — while high-yield CD rates rose to historic highs.
Latest average CD APYs: 3-month trend
Bankrate monitors the national average rates on various CD terms, including:
| Date | 1-year CD | 3-year CD | 5-year CD |
|---|---|---|---|
| 06/02/2025 | 2.00% | 1.70% | 1.72% |
| 05/26/2025 | 2.00% | 1.69% | 1.70% |
| 05/19/2025 | 1.99% | 1.69% | 1.70% |
| 05/12/2025 | 2.00% | 1.69% | 1.71% |
| 05/05/2025 | 2.01% | 1.69% | 1.70% |
| 04/28/2025 | 2.01% | 1.68% | 1.69% |
| 04/21/2025 | 2.01% | 1.69% | 1.70% |
| 04/14/2025 | 2.01% | 1.69% | 1.70% |
| 04/07/2025 | 2.02% | 1.69% | 1.70% |
| 03/31/2025 | 2.02% | 1.69% | 1.69% |
| 03/24/2025 | 2.00% | 1.67% | 1.68% |
| 03/17/2025 | 2.01% | 1.67% | 1.67% |
| 03/10/2025 | 2.02% | 1.68% | 1.68% |
| 03/03/2025 | 2.01% | 1.68% | 1.69% |
How Bankrate calculates the national average
Bankrate has made enhancements to our national averages database on April 14, 2025, including ones that retroactively impact previous weeks’ listings in our table. Previous enhancements were also made in January 2025. Up to 1,200 banks and credit unions are surveyed weekly to generate the national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.
Compare CD rates by term for June 2025
Current 6-month CD rates
- First Internet Bank of Indiana — 4.49%
- Rising Bank — 4.41% APY
- Popular Direct — 4.40% APY
- Bread Savings — 4.35% APY
- CIBC Bank USA — 4.31% APY
See additional best 6-month CD rates.
Current 1-year CD rates
- Popular Direct — 4.40% APY
- Rising Bank — 4.35% APY
- Limelight Bank — 4.35% APY
- Bask Bank — 4.30% APY
- TAB Bank — 4.21% APY
See additional best 1-year CD rates.
Current 3-year CD rates
- Popular Direct — 4.15% APY
- Synchrony — 4.00% APY
- Bread Savings — 4.00% APY
- First Internet Bank of Indiana — 3.97% APY
- TAB Bank — 3.91% APY
See additional best 3-year CD rates.
Current 5-year CD rates
- Popular Direct — 4.20% APY
- Synchrony Bank — 4.15% APY
- Bread Savings — 4.00% APY
- First Internet Bank of Indiana — 3.97% APY
- Morgan Stanley Private Bank — 3.90% APY
See additional best 5-year CD rates.
Note: Annual percentage yields (APYs) shown are as of June 5, 2025 Bankrate’s editorial team updates this information weekly. APYs may have changed since they were last updated and may vary by region for some products.
Current CD rates FAQs
-
The Federal Reserve’s decisions on interest rates can affect CD rates. Once the central bank makes a decision to change the rate, competitive banks will generally move CD yields in the same direction. Broader macroeconomic conditions also influence CD rates.
-
CD rates are determined by several factors. The decisions made by the Federal Reserve on the federal funds rate will likely influence CD rates. Competition among banks and credit unions will also influence the payout on their CDs, as well as whether or not the financial institution needs deposits. In general, online banks tend to pay higher rates than banks with branches. Changes in Treasury yields and economic conditions also influence CD rates.
Learn more to maximize your earnings
Read the full article here
