The average rate for a one year certificate of deposit, or CD, offered by a credit union was 0.511% in 2014. CD interest rates can vary, ranging from 0.3% to 1.0% a year. The minimum deposit amount also has an impact. The greater the minimum deposit, the better the rate.
The longer the term for the CD, the higher the rate. A certificate of deposit is a way for consumers to earn higher interest rates on their savings by pledging an amount for a certain period of time. They receive penalties if money is withdrawn prior to the term. Credit unions typically offer higher rates compared to a bank.