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Historical CD rates for a 3-month or 90-day CD ranged from 0.11% to 18.65%, according to Federal Reserve Economic data.
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CD rates have gone up and down many times from 1965 to 2023.
The highest CD rate recorded in the US occurred in 1980.
CD rates have increased in 2023 as the Federal Reserve’s rate changes have impacted them.
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 2023. 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 by decade
The following chart shows the interest rates for 3-month or 90-day CDs and is based on data from the Federal Reserve Economic Database that was last collected on September 12, 2023.
Decade
Lowest Interest Rate
Highest Interest Rate
1965 to 19694.13% (January 1965)8.77% (December 1969)1970 to 19793.61% (February 1972)13.90% (December 1979)1980 to 19895.69% (October 1986)18.65% (December 1980)1990 to 19993.09% (April 1993)8.42% (April 1990)2000 to 20090.21% (November 2009)6.73% (June 2000)2010 to 20190.11% (May 2014)2.69% (December 2018)2020 to 20230.09% (June 2021)5.44% (August 2023)
Historical CD rate trends
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 US, the Federal Reserve manages the federal funds rate.
Generally, the Federal Reserve raises rates to combat inflation and lowers rates to encourage economic growth. When the Federal Reserve raises rates, CD rates rise. Conversely, if rates drop, CD rates also go down.
Hence, some of the highest CD rates in history occurred in the late 1970s and early 1980s because the Federal Reserve raised rates significantly to combat high inflation.
When the US 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.
What are CD rates like in 2023?
According to data from the St. Louis Federal Reserve, the interest rate for a 3-month CD has gone up from around 4.61% in January 2023 to 5.44% in August 2023.
Adrianna Adams, CFP, Head of Financial Planning at Domain Money, says high inflation has been a driver for a higher interest rate environment right now.
“The Fed has been raising rates to combat inflation. While we’re in a higher inflationary period and costs of goods are going up a lot quicker, the banks and the Fed have had to raise rates as well. That’s typically very correlated,” adds Adams.
Will CD rates go up in 2024?
While it depends on the economic conditions, CD rates may eventually start to drop toward the end of 2024.
“They’ll probably be pretty static over the next year into 2024. But 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 gonna go much higher from here,” says Adams.
Historical CD Rates FAQs
What was the highest CD rate in history?
The highest CD rate for a 3-month term in history was 18.65%. This CD rate occurred in December 1980.
What was the lowest CD rate in history?
The lowest CD rate for a 3-month term in history was 0.09%. This CD rate occurred in June 2021.
When was the last time CDs were at 5%?
The last time CD rates were at 5% was in October 2007. However, once the Great Recession began, CD rates dropped significantly in 2008 and 2009.
Why are CD rates so good right now?
CD rates are high because the Federal Reserve is raising interest rates to fight inflation. When the Federal Reserve raises interest rates this impacts bank interest rates. Savings and CD rates tend to go up.