As the Federal Reserve has moved short-term rates higher, the rate banks offer on their certificates of deposits has lagged significantly. Across the industry, the average rate for one-year CDs increased by 0.36% to 0.62% from September 2021 to September 2022. Large banks (>$250bn) led the way with an increase of 0.77% for one-year CDs over that period.

by Laura Fox