The upshot, though, is the same: Americans are more likely to consider CDs if they pay more in interest, especially compared to inflation. CD yields jumped in 2022 after the Fed raised rates by 4.25 percentage points in nine months.

That’s what has made the current moment so interesting. The aftermath of the Great Recession, in which the Fed kept interest rates near zero for almost a decade as inflation continually ran under its desired level, is just the most recent trend. The story behind drooping CD rates is complicated, and it involves: falling inflation (until recently), an aging population, technological innovations and the Federal Reserve lowering interest rates. At the beginning of 1989, for instance, a one-year CD offered an 8.30% APY. The reason? CDs used to be a much better deal. In 2019, however, only 7.7% of households had a CD. They were still in vogue nearly two decades later, as more than 16% used them in 2007. Roughly a fifth of households owned a CD in 1989, according to the Fed. See the Personal Deposit Account Agreement for more details about eligibility.ĤPartial and full withdrawals may be made without penalty during a ten (10) day grace period that begins on each anniversary of the account opening date.CDs used to play an important, albeit complimentary, role in the finances of everyday Americans. Please refer to the Personal Deposit Account Agreement for information on early withdrawal penalties and relationship rate eligibility.ģ To qualify for the relationship rate, customers must own an eligible TD Bank personal checking account in good standing at the time of CD account opening or renewal. To qualify for the relationship rate, customers must own an eligible TD Bank personal checking account in good standing at the time of CD or IRA CD account opening or renewal. Posted rates on this page are subject to change at any time without notice. Penalties for early withdrawal may apply. 1TD Choice Promotional CDs and IRA CDs will automatically renew at maturity to the same term at the non-promotional TD Choice CD or IRA CD interest rate and APY in effect at the time of renewal unless we notify you otherwise.ĢAnnual Percentage Yield (APY) is accurate as of and assumes that interest and principal will remain on deposit until maturity.

Bank of america cd interest rates