Average CD and Savings Account Rates Rose Again This Week, as Potential Fed Rate Hikes May Bring More Good News for Savers

Photo to accompany a story about average savinsg and cd rates week of September 6, 2022
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CD and savings interest rates are continuing to rise weekly — following the trend that experts predict will continue for the foreseeable future.

And with signs pointing toward the Federal Reserve issuing another rate hike at the upcoming FOMC meeting from Sept. 20-21, given inflation rates are still at near-record highs.

“I think rates will continue to rise at least until the end of the year, says Marty O’Leary, a certified financial planner and founder of Stadium Financial, a financial planning firm in Orlando, Florida. Even though it’s bad news for credit card debt and mortgage interest rates, the rate increase is good news for savers.

As long as the Fed continues to raise rates, you can expect your earnings on CDs, high-yield savings accounts, and other banking products will go up. 

Here’s the latest on average CD and high-yield savings rates this week, and what to consider if you’re looking to maximize savings today: 

How NextAdvisor Determines These Average Rates

We compare three different averages in our average CD and savings rate analysis. First, we review national deposit rates from the Federal Deposit Insurance Corporation (FDIC) and Bankrate’s national index of deposit accounts based on a weekly survey (like NextAdvisor, Bankrate is owned by Red Ventures). We also calculate the current average rate of each bank on our list of best CD rates and best savings rates.

The differences between national average savings rates and NextAdvisor’s analysis of interest rates is largely due to the much higher APYs that online banks pay.

National surveys from the FDIC and Bankrate include many different types of financial institutions, including large national banks that charge as little as 0.01% APY. Our lists, on the other hand, is made up of online or hybrid banks with fewer overhead costs, which allows them to pass on savings in the form of interest to customers.

Average CD Rates This Week

CD TermFDIC National Deposit RateBankrate National IndexNextAdvisor Average APY
1-Year0.46%0.65%2.52%
3-Year0.54%0.67%2.72%
5-Year0.64%0.73%2.99%

There are plenty of CD options on our list of best CD rates that surpass these averages, though. Here are the top CD rates by term this week: 

1-Year 

  • Bread Savings (formerly Comenity Direct Bank): 3.00%
  • CFG Bank: 2.90%
  • Synchrony Bank: 2.75%

3-Year 

  • Bread Savings (formerly Comenity Direct Bank): 3.55%
  • CFG Bank: 3.25%
  • Capital One: 3.10%

5-Year

  • Bread Savings (formerly Comenity Direct Bank): 3.65%
  • Synchrony Bank: 3.50%
  • CFG Bank: 3.40%

Average Savings Rates This Week

FDIC National Deposit RateBankrate National IndexNextAdvisor Average APY
0.13%0.13%1.92%

Several banks listed among our best savings account rates offer higher than the average. Here are a few of the best savings APYs this week:

  • Prime Alliance Bank: 2.26%
  • UFB Direct: 2.21%
  • TAB Bank: 2.16%
  • Bread Savings: 2.15%

Average Rates Compared to Last Week 

CD rates went up across the board this week. The difference wasn’t massive, but there was a higher jump than we’ve seen in the past few weeks. 

Bankrate’s weekly survey shows an incremental increase in rates, with one-year CDs up by 0.01%, three-year CDs up by 0.03%, and five-year CDs up by 0.02%. Based on our analysis, average 1-year CDs went from 2.44% to 2.52%, while 3-year CDs saw a slight increase from 2.67% to 2.72%, and five-year CDs from 2.94% to 2.99%. 

As for savings accounts, the Bankrate National Index and FDIC average rates both remained the same at 0.13%. But the average among high-yield savings accounts we track on our best savings account rates page increased from 1.80% to 1.92% APY. Not only did several banks increase their interest rates this week, but the majority of those that did cross above 2.00% APY — helping to drive up the average. 

Should You Open a CD or High-Yield Savings Account Right Now? 

Whether you open a CD or high-yield savings account right now depends on your financial goals and how long you plan to set the money aside. 

Remember, while CDs offer fixed interest rates, high-yield savings accounts carry variable interest that fluctuates over time. You can withdraw your money from a savings account at any time, though CDs charge a penalty for withdrawing before the end of the account term. As a result, CD rates are often higher than more liquid high-yield savings, though the margins aren’t that wide today.

In a rising rate environment like today’s, that can make high-yield savings accounts more appealing. You might open at a higher rate, but you can also avoid locking your money away for a long time in an account that could earn more interest in just a few weeks. 

“You have the flexibility of moving money in and out of [savings accounts] as you need to, while CDs are fixed for that time period,” says O’Leary. 

If you’re leaning toward a CD, you may still want to consider shorter terms. Rates are rising faster on one-year CDs than three-year CDs and longer terms, says O’Leary. 

“Six-month to one-year CDs, I think are the sweet spot right now,” says O’Leary. “You can get about 2.75 to 3% yield. If you go out to five years, you’re only gonna get about 3.5%. And with the Fed raising rates, it doesn’t make sense to lock in any longer rates.” 

Average CD and Savings Rate FAQs

What is the shortest CD term?

Some banks offer CDs with terms as short as one month, depending on the financial institution. 

Do CDs earn interest daily?

How interest accrues depends on your bank. Some CDs compound interest daily, while others are monthly.

What is the average high-yield savings rate right now?

The average high-yield savings account rate is 1.92% this week. It’s best to compare different accounts to find the best interest rate, minimums, and other account details for your goals.