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Brian McKay

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Brian is the Co-Founder of MonitorBankRates.com. For over 18 years, he has utilized his background in enterprise infrastructure to engineer proprietary systems that track rates from over 8,000 financial institutions.

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| August 17, 2026 | 6 min read

Longer-Term CD Rates Rise While Short-Term CD Rates Slip

CD rates moved in two directions over the past two weeks. Rates on terms of 18 months and longer rose, led by 60-month CD rates at 2.770%, while 3-month CD rates fell again. 12-month CD rates remain the highest average of any term at 2.855%.

Over the past two weeks, average CD rates rose on six of the eight terms we track, and the gains were largest on the longest terms. 60-month CD rates climbed 0.033 points to 2.770%, more than any other term, while 48-month, 24-month, and 36-month CD rates all moved higher as well. Short-term CDs went the other way: 3-month CD rates fell 0.045 points to 1.869%, their third straight decline, and 6-month CD rates eased slightly. 12-month CD rates barely moved, up 0.002 points to 2.855%, but they still pay more than any other term.

What happened to CD rates over the past two weeks

Short and mid-term CD rates, national average APY since late March

Average APYs from MonitorBankRates.com's nightly collection, updated daily. Figures in the text and table are this report's verified averages and can differ slightly from the nightly series.

12-month CD rates added 0.002 points to 2.855% and continue to top every other term we track. The real movement was elsewhere. 3-month CD rates dropped 0.045 points to 1.869%, a faster decline than in either of our two previous reports, and they remain the only average under 2% by a wide margin. 6-month CD rates slipped 0.007 points to 2.681% after rising in late July. Banks are paying less and less to hold money for only a few months.

Rates on longer terms all rose. 60-month CD rates gained 0.033 points to 2.770%, 48-month CD rates added 0.021 points to 2.662%, 24-month CD rates rose 0.017 points to 2.731%, and 36-month CD rates climbed 0.015 points to 2.676%. That last move broke the exact tie we reported on July 27, when 18-month and 36-month CD rates both averaged 2.661%; 36-month CDs now pay 0.011 points more than 18-month CDs.

Longer-term CD rates, national average APY since late March

Average APYs from the nightly collection, updated daily.

Why a 1-year CD still pays more than a 5-year CD

Normally, banks pay more the longer you agree to leave your money with them. Right now the opposite is true: 12-month CD rates at 2.855% are higher than 60-month CD rates at 2.770%, and that has held all summer. The difference peaked at 0.116 points in our July 27 report. Over the past two weeks it narrowed to 0.085 points, because banks raised longer-term rates while 12-month rates barely moved. If that continues, the unusual advantage of the 1-year term will keep shrinking, which is worth watching if you've been parking everything at one year by default.

Change since July 27, by CD term (percentage points)

This report's verified averages, July 27 to August 17. Green bars rose; red bars fell.

Compare CD rates: July 27 vs. August 17

Where the Federal Reserve fits in

Banks decide what to pay on CDs partly by guessing where the Federal Reserve goes next, and right now they're acting like they expect rates to stay up. The Fed kept its benchmark rate at 3.50% to 3.75% on July 29, its fifth straight hold, and three committee members went further, voting to raise rates by a quarter point. Here's why that shows up in your CD offers: a bank that expects rate cuts avoids locking itself into paying 4- and 5-year CDs at today's levels. Banks did the opposite over the past two weeks, raising rates on their longest terms. With inflation still above the Fed's 2 percent goal and the next meeting coming in September, nothing in the July decision gives banks a reason to start pulling deposit rates down.

What this means for your savings

At today's 2.855% average, a $10,000 deposit in a 12-month CD earns about $285 in a year, and the strongest offers in our data pay well above that average. If you're deciding between terms, the trade-off got a little more even: longer terms pay more than they did two weeks ago, while the 1-year term stood still. Splitting a balance across several maturities is one way to avoid betting everything on a single term, and our CD laddering calculator shows how the payments line up. Savers weighing simpler options can compare CDs or a savings account for retirees. And remember these are national averages; someone comparing Texas CD rates can line up in-state and online offers against the national picture. Term-by-term history is on our CD rate trend charts.

The bottom line

CD rates are drifting in savers' favor everywhere except the shortest terms. 12-month CDs still pay the most, longer terms are catching up, and 3-month CDs keep falling behind. And the range behind these averages is enormous: banks in our data pay anywhere from near zero to just over 6% on a 12-month CD. That means the difference between settling for whatever your current bank pays and comparing a few offers can matter more than any rate move on this page.