American Families Are Using CDs More Often: Ownership Climbs From 6.5% to 10.7%

Quick Read

• CD ownership among U.S. families increased sharply, rising from 6.5% to 10.7% between 2022 and 2025 as deposit rates improved.

• Typical CD balances climbed faster than average balances, suggesting the gains were spread across ordinary savers rather than being driven mainly by large accounts.

• Treasury bills currently offer yields as high as 4.39%, above the national average 12-month CD rate of 1.76%, while inflation is running at 3.7%.

For years, bank certificates of deposit offered so little that many savers ignored them. A CD is a savings product that locks money in for a set term, such as 12 months, in exchange for a fixed interest rate.

Withdrawing funds early usually triggers a penalty. The latest national data helps explain how this once-overlooked product regained appeal and where families are now keeping their cash.

CD Ownership Increased by Nearly Two-Thirds Over Three Years

The Federal Reserve's Survey of Consumer Finances found that the share of families holding CDs rose from 6.5% in 2022 to 10.7% in 2025, a gain of about 65% in relative terms. The survey is conducted every three years and asks households detailed questions about what they own and owe. The Fed said the increase likely reflects the stronger returns available from this type of asset in 2025 compared with 2022.

Balances also moved higher, though unevenly. For households that owned CDs, the median balance rose 23%, while the mean balance increased 4%. The median represents the middle household when all balances are lined up, while the mean is the total divided by the number of holders, so very large accounts can push it upward. When the median rises much faster than the mean, it suggests the benefits are being shared broadly among typical holders rather than concentrated among the richest ones.

Why CDs Began Paying More Again

CD rates usually move in step with the Federal Reserve's benchmark interest rate, which influences the cost banks pay to borrow from each other overnight. When the Fed raises rates, banks often boost deposit yields to attract money. When the Fed cuts rates, those yields generally decline.

The Fed's upper target bound reached 4.00% after a year of increases, then climbed to 5.5% and stayed there for more than a year before easing later. Households responding to the 2025 survey had spent an extended period in a higher-rate environment, giving banks more reason to compete for deposits.

Later rate cuts followed, and the upper bound ended the year at 4.5% before falling further and then moving back up to 4%. The shift helps explain why savers who locked in higher yields earlier may now be seeing lower renewal offers.

What CDs and Treasury Bills Pay Now

The FDIC's national average rate on a 12-month CD was 1.76% as of late 2026, up from a one-year low of 1.52% earlier in the year. That average includes many large banks that pay very little. Online banks often offer more than the national average, and recent rate roundups from financial publications showed the best offers well above it.

Treasury bills are another place to hold cash. These are short-term loans to the federal government. The 4-week bill yielded 3.96%, the 13-week bill 4.13%, and the 52-week bill 4.39%.

Inflation matters as well. Consumer prices rose 3.7% through September 2026. That means a CD paying the national average is earning less than inflation, so the money's purchasing power is still slipping even as the balance grows.

Lower Rates Can Change the Renewal Picture

When a CD matures, many banks automatically renew it into a new term at the rate being offered at that moment. If rates have fallen since the original deposit, the new CD will pay less, and many savers may not realize it until the next statement arrives. That is the opposite of the trend captured in the Fed survey. Families that opened CDs during the higher-rate period may now be rolling them into lower-yielding terms.

One way to reduce that risk is a CD ladder. In that strategy, a saver divides money among several CDs that mature at different times, such as six months, one year, and two years, so only part of the cash renews at any one rate. Recent commentary has also compared CDs with Treasury bills for savers in high-tax states, where Treasury interest is exempt from state income tax.

What the Latest Survey Still Doesn't Show

The survey indicates that when CDs paid more, more families used them and the typical holder put in more money. But the data only runs through 2025, so it does not show how many households have kept those CDs as rates have changed since then. It does show that CD ownership rose during a period of higher deposit rates, while yields on checking accounts, savings accounts, and maturing CDs vary by bank.