Annual Percentage Yield Chart
This chart shows many common annual percentage yield (APY) rates offered by finanancial institutions, now or in the past*, on certificates of deposit (CD) and other savings accounts, organized by lowest to highest yields. Click or tap into any APY to evaluate its compounding power over a 1 to 5 year period.
*Note: The higher APY rates (column 3) have not been available for years to decades, as discussed below. In 2020 to 2021, CD APY mainly hovered in the column 1 and 2 range.
Rates are organized in the chart above by column: lowest APY rates are in the left column, low are in the middle column, with better (to best) in the right column. Rows further down in the table offer higher rates than those in earlier rows.
For example, in Row 1, 1% APY in the right column is a much better rate than .01% in the leftmost column (in fact, 100 times better!); in Row 5, 5% APY in the right column is a much higher rate (compared to 1%), and significantly better than .05% in the left column.
To better evaluate the strength of an APY rate, check how much interest it will earn for your money. Simply click or tap on any rate to see how the APY CD rate performs when compounded daily for 1 to 5 year terms on any starting principal amount.
Is a 10% APY Certificate of Deposit Possible
The highest APY rate in the chart is 10%, which appears in column 3 on the bottom row. A 10% APY is 1000 times greater than the lowest rate in the table, .01%, which means that you would earn 1000 times the interest!
To see what that means in terms of interest earning potential, let's assume a starting balance of $1000, and compounded interest annually. In 1 year, at 10%, that $1000 would earn $100 in interest. In 1 year, at .01% interest, it would earn $0.10 interest - just ten cents - 1000 times less than 10%!
Given the rock-bottom CD rates of 2020 and 2021, and generally low rates in the past decade and a half, is 10% simply a fantasy rate pulled from a hat? Is a 10% APY possible? It's happened before. In the late 1970s and early 1980s, due to extremely high inflation, U.S. certificates of deposit were yielding 10%, and it was not uncommon to see 15% APY, or more.
More recently, in the late 1990s, it was possible to get CDs in the 6% to 7% range.
Will CD Rates Go Up in 2022 and 2023 in the USA?
The short answer: more than likely, yes, due to the Federal Reserve ("the Fed") raising the overnight Fund Rate in an effort to curtail inflation. When the Fed Fund Rate increases, it generally corresponds to rising CD APY rates from many finanacial institutions.
In May 2022, the Fed Rate increased by .50 percentage points, the largest increase in 2 decades; This followed an increase of .25 percentage points in March 2022.
While 2022 started off with very low CD rates, and as of June 2022, some banks are still offering CDs with abysmally low rates, such as .04% APY for 1 year CD terms, many other banks and credit unions are starting to raise their rates, some significantly. For example, some banks have 1 year CD APYs at 1.8%, which is 45 times more than the .04% rate.
Given that the Fed will likely raise the Fund Rate several more times in 2022, and perhaps in 2023, now is an extremely good time to keep a watch on CD rates. Shopping around is imperative to get the best rates for term lengths that are of interest to you.
As always, when you review any CD, you'll want to read the CD terms completely to understand, among other things, if early withdrawal is possible and what penalties would apply, and to make sure the financial institution is insured: by FDIC (Federal Deposit Insurance Corporation) if it's a bank, and by NCUA (National Credit Union Administration) if it's a credit unition.