From 2010 to 2026, top-tier 5-year CD rates ranged from 0.95% (mid-2021) to 5.00% (early 2024). The 2010-2021 famine taught a generation of savers that CDs do not pay; the 2022-2026 spike has reminded them that they do. As of mid-2026, the best 5-year CD rates sit around 4.55%, off the peak but still well above the 16-year average of 1.85%. The historical lesson: when 5-year rates are above 4%, lock some of your conservative allocation.
| Year | Top-tier 5-yr CD | Fed Funds (avg) | 10-yr Treasury (avg) | Notes |
|---|---|---|---|---|
| 2010 | 2.80% | 0.13% | 3.22% | Post-GFC recovery |
| 2011 | 2.30% | 0.10% | 2.78% | Operation Twist |
| 2012 | 1.85% | 0.14% | 1.80% | QE3 begins |
| 2013 | 1.75% | 0.11% | 2.35% | Taper tantrum |
| 2014 | 2.25% | 0.09% | 2.54% | QE ends |
| 2015 | 2.25% | 0.13% | 2.14% | First Fed hike Dec |
| 2016 | 2.25% | 0.39% | 1.84% | One hike |
| 2017 | 2.45% | 1.00% | 2.33% | Three hikes |
| 2018 | 3.10% | 1.83% | 2.91% | Four hikes |
| 2019 | 2.85% | 2.16% | 2.14% | Three cuts H2 |
| 2020 | 1.55% | 0.38% | 0.89% | COVID emergency cuts |
| 2021 | 1.00% | 0.08% | 1.45% | Trough year |
| 2022 | 3.50% | 1.68% | 2.95% | Hiking cycle begins |
| 2023 | 4.85% | 5.02% | 3.96% | Cycle peak |
| 2024 | 5.00% | 5.14% | 4.21% | Peak year; first cuts Sept-Dec (-1.00 point) |
| 2025 | 4.75% | 4.21% | 4.29% | Three cuts Sept-Dec, to 3.50-3.75% |
| 2026 (to Sept 24) | 4.55% (June) | 3.64% | 4.45% | No cuts; hike to 3.75-4.00% on Sept 16 |
Source: aggregated from Bankrate national tracker, FRED Fed Funds and Treasury data, and top online direct bank rate sheets. National-average CD rates are materially lower than top-tier rates. The spread is typically 100 to 300 bps in any given year. Fed funds and 10-year averages for 2024-2026 recomputed from FRED series DFF and DGS10 on September 28, 2026 (2026 = January 1 to September 24).
The table above tracks the best online-bank rates. This one is what the average bank paid, from the FDIC’s own published national rates: the first release of each January, plus the latest. It is the number your local branch’s rate sheet tends to sit near.
| Year | FDIC release | 12-month CD national rate | 60-month (5-year) CD national rate |
|---|---|---|---|
| 2010 | Jan. 4 | 0.91% | 2.14% |
| 2011 | Jan. 3 | 0.52% | 1.57% |
| 2012 | Jan. 2 | 0.33% | 1.22% |
| 2013 | Jan. 7 | 0.23% | 0.84% |
| 2014 | Jan. 6 | 0.20% | 0.75% |
| 2015 | Jan. 5 | 0.20% | 0.78% |
| 2016 | Jan. 4 | 0.21% | 0.80% |
| 2017 | Jan. 2 | 0.22% | 0.78% |
| 2018 | Jan. 1 | 0.29% | 0.89% |
| 2019 | Jan. 7 | 0.61% | 1.25% |
| 2020 | Jan. 6 | 0.48% | 0.96% |
| 2021 | Jan. 4 | 0.16% | 0.33% |
| 2022 | Jan. 18* | 0.13% | 0.28% |
| 2023 | Jan. 16* | 1.28% | 1.21% |
| 2024 | Jan. 16* | 1.86% | 1.41% |
| 2025 | Jan. 21* | 1.82% | 1.32% |
| 2026 | Jan. 20* | 1.61% | 1.34% |
| 2026 | Sept. 21* (latest) | 1.73% | 1.38% |
Sources: FDIC national rates archive, 2009 to March 2021 (weekly, non-jumbo deposits under $100,000); FDIC revised-rule archive, April 2021 on (monthly, all deposits); FDIC National Rates and Rate Caps, September 21, 2026; FRED series NDR12MCD and NDR60MCD. *Starting April 1, 2021 the FDIC changed the method: the national rate is now an average of all insured banks and credit unions weighted by each institution’s share of domestic deposits. Before that it was an average weighted by branch, without credit unions, so the two halves of the table are close but not identical measures.
What the official numbers add. Under the current method, the national 12-month rate peaked at 1.88% (September 2024 release) and the 60-month at 1.43% (June 2024 release). Even at the top of the cycle, the average bank paid well under 2% while top online banks paid about 5%. As of the September 21, 2026 release the national 5-year rate was 1.38%, against 4.35-4.50% APY for the best nationally available 5-year CDs on September 25, 2026 (DepositAccounts). The national 5-year rate has also sat below the 12-month rate in every January since 2023, the deposit-market version of an inverted curve.
Fed Funds at zero, 10-year Treasury falling to 1.80 percent. Top 5-year CDs paid 1.75 to 2.85 percent. The era taught savers that holding cash and CDs cost real purchasing power because inflation typically ran 1.5 to 2.5 percent. Many retirees moved into bonds and equities in search of yield, often at the wrong moments.
Fed hiked nine times from December 2015 to December 2018. 5-year CDs climbed from 2.25 to 3.10 percent. Then the Fed reversed in 2019 with three cuts as the curve inverted. Savers who locked 5-year CDs in late 2018 at 3.10 percent felt vindicated for the next three years.
Emergency rate cuts to zero. Top 5-year CDs collapsed to 1.00 percent by mid-2021. National average sat at 0.30 to 0.40 percent. This was the worst CD rate environment in the modern era. Anyone with maturing CDs in 2021 faced reinvestment at one-third the rate they had been earning.
Fed hiked from 0 to 5.25-5.50 percent in 18 months. 5-year CD rates jumped from 1.00 percent to 5.00 percent. The hiking cycle ended in July 2023. The Fed cut 1.00 point in late 2024 and 0.75 point in late 2025 (to 3.50-3.75%), held through the first half of 2026, then raised its target range to 3.75-4.00% on September 16, 2026 (FOMC statement). Top 5-year CDs were about 4.55 percent in June 2026; on September 25, 2026 the best nationally available 5-year CDs paid 4.35-4.50% APY (DepositAccounts).
The 5.00 percent top-tier 5-year CD was available for roughly 6 months in late 2023 and early 2024. The 4.85 percent prior peak in 2018 was available for roughly 5 months. If you wait for the exact peak, you usually miss it. Locking within 25 bps of the peak captures most of the cycle benefit.
2010-2015 famine. 2020-2021 famine. The famines are real and they last years. Locking 5-year CDs during a high-rate window protects you against the next famine.
The Bankrate national average for 5-year CDs is typically 100 to 300 bps below the top online direct bank rate. A saver who used only their existing bank's rate sheet over the 2010-2026 period left tens of thousands of dollars on the table. Shopping rates matters at every cycle position.
In 2019 and again in 2023-2024, the 1-year CD yielded more than the 5-year. The inversion preceded Fed cuts in both cases. Inversion is the market's warning that locking long is about to become very valuable.
MYGA rates over the same 2010-2026 period have run consistently 80 to 130 bps above the best comparable CD. The premium does not collapse in low-rate environments. In 2021, the best 5-year CD was 1.00 percent; the best 5-year MYGA was 2.15 percent. That is more than double on the same risk profile.
The Fed made no cuts in 2026. It held at 3.50-3.75% through July and raised its target range to 3.75-4.00% on September 16, 2026 (FOMC statement). Nobody knows the next move, and this page does not forecast one. The case for locking part of your conservative money rests on the level, not a prediction: on September 25, 2026 the best nationally available 5-year CDs paid 4.35-4.50% APY (DepositAccounts), far above the 16-year average in the table.
Illustration only: if 5-year CD rates later fell 55 bps, $250,000 locked for 5 years before the drop would earn roughly $8,500 more interest than money that waited. If rates rise instead, as they did after the September 2026 hike, the portion kept short can be reinvested higher. What matters is that the asymmetry favors locking some money when rates are above the long-term average.
Every rate-cycle lesson above applies more strongly to MYGAs because the MYGA premium over CDs is stable across cycles. Locking a 5-year MYGA at 5.55 percent in mid-2026 captures the same cycle benefit as locking a 5-year CD at 4.55 percent, with 100 bps of additional yield.
For long-horizon conservative money, the MYGA is structurally better-positioned for the next famine because the credited rate is locked for the full contract term with no rate reset risk. See our CD vs MYGA ladder comparison for the full math.
This article reflects publicly available CD, savings, and annuity rate information approximate to the date above. Rates change frequently, often weekly. Always confirm current rates directly with the institution before opening, renewing, or transferring. This is general educational content, not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers in the fixed-annuity market; Goldstein & Co. LLC is not a bank, broker-dealer, or registered investment adviser. CDs are deposit products of FDIC-insured banks or NCUA-insured credit unions; annuities are insurance contracts backed by the issuing carrier and state guaranty associations. FDIC and NCUA insurance limits are typically $250,000 per depositor per institution per ownership category. Tax discussion reflects federal law as of 2026 and is subject to change; consult a tax professional for your situation.
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. General education, not tax or legal advice for your situation.