A Look at the History of CD Interest Rates: How They’ve Changed Over Time

Shawn Plummer

CEO, The Annuity Expert

When saving money, most people think about putting their money into a bank account. This is smart, as bank accounts offer some of the lowest interest rates. However, if you’re looking for a higher return on your investment, you may want to consider investing in a certificate of deposit (CD). This guide will look at the history of CD interest rates and how they have changed over time. We will also discuss why staying up-to-date on these rates is important if you consider investing in CDs.

The 1980s

CD Rates in the 1980s. In the 1980s, the average CD interest rate was around 12%. This was a great return on investment, especially compared to savings account rates, typically around 0.75%. As a result, CDs became increasingly popular in the 1980s as more and more people began looking for ways to invest their money.

The 1990s

CD Rates in the 1990s. The early 1990s saw a decrease in CD interest rates, with the average rate falling to around 11%. This decline was due to several factors, including the recession of the early 1990s and the Gulf War. Despite this decrease, CDs remained popular investment options and were a good way to earn a higher return on your money.

The 2000s

CD Rates in the 2000s. The early 2000s were a period of instability for CD interest rates. The average rate fell to around ten percent in 2001, before rising to 12% in 2002. However, the terrorist attacks of September 11th caused a sharp decrease in CD interest rates, with the average rate falling to just over six percent in 2003. Despite this decrease, CDs remained a popular investment option for many people.


The current average CD interest rate is around two percent. This is a significant decrease from the past rates, but it is still a good return on your investment if you are looking for a safe and secure way to save your money. If you are considering investing in CDs, it is important to stay up-to-date on the current rates to make the best decision for your needs.

Free Tool: CD Interest Rate Calculator

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.60%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings, ranging from 3 months to 10 years, all in one place.


Fixed annuities can be a great way to secure a stable income for your retirement. CD rates may be at an all-time low, but that doesn’t mean you have to settle for returns that won’t keep up with inflation. Contact us today and let us help you find the best-fixed annuity for your needs. We can provide quotes from some of the top providers in the country, so you can rest easy knowing your money is working hard for you.

The History Of Cd Interest Rates

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top