By the fall of 1984, six-month, one-year and five-year CDs had fallen below 10%. ![]() As the cost of goods and services increased, and the power of the dollar declined, people who saved were able to get double-digit returns on their CDs.ĭuring the summer of 1984, the average APY on a six-month CD dipped to under 11%. ![]() CD rates in the 1980sĪmid back-to-back recessions and high levels of inflation, CD rates surged to almost 20% in 1981. Read on for a decade-by-decade breakdown of how CD rates changed. In the mid-2010s, “CD yields continued to fall in the years following the Great Recession as the Federal Reserve kept benchmark interest rates near zero amid a sluggish economic recovery.” “Interest rates were significantly higher in the early 1980s as the Federal Reserve used high rates to corral double-digit inflation,” according to Greg McBride, a chartered financial analyst and chief financial analyst for Bankrate, CNET’s sister site. In the 1980s, CD rates were relatively high: The average APY for a five-year CD in July 1984 was 11.80%. The history of CD rates from the 1980s to today
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