Average six-month CD rates remained high, at 12.57% in 1982, but dropped to 9.28% in 1983 as inflation remained low and recovery began. And with lower employment rates comes reduced deposits. In late 1982, the unemployment rate reached 11%. The 1980s also began with the worst recession in the United States since the Great Depression.

But these historically high interest rates were tempered by high inflation rates-13.30% in 1979 and 12.40% in 1980. At the same time, the average 3-month CD rate hit 18.65%. In March 1980, six-month CD rates averaged 17.74% APY, and the rate rose to 17.98% in August 1981. The 1980s began with the highest CD interest rates in 60 years.

CD Rates From 1980 to 1989Įditor’s note: The specific rates mentioned in this section might not be represented in the graph above because average annual rates were used as data points rather than monthly rates. Current three-month CD rates are the highest we’ve seen since 5.15% in 2006 and 5.27% in 2007. Over the last 20 years, average three-month CD rates have rarely climbed above the 5.00% mark. Many of the downward dips seen on the graph occurred during recessions in the U.S., when the government typically lowers rates to encourage spending. The data only provides a snapshot of historical data gathered by the Fed as rates fluctuated from month to month. The graph above shows the average three-month CD rates dating back to 1980. Source: Organization for Economic Co-operation and Development

Best 1 year cd interest rates