National Rate Cap: 3 Month CD <100M
NRC3MCD • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
6.04
Year-over-Year Change
-17.28%
Date Range
4/1/2021 - 7/1/2025
Summary
The National Rate Cap for 3-Month CDs under $100 Million represents the maximum interest rate paid by financial institutions on short-term certificates of deposit. This metric provides insight into current banking deposit rates and serves as a benchmark for consumer savings and investment strategies.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This economic indicator tracks the ceiling rate for 3-month certificates of deposit with balances below $100 million, reflecting current market conditions and monetary policy influences. Economists and financial analysts use this rate to understand short-term lending dynamics and overall banking sector health.
Methodology
The rate is calculated by the Federal Reserve based on aggregated data from financial institutions across the United States.
Historical Context
This rate is crucial for understanding short-term investment yields, banking sector competitiveness, and monetary policy transmission mechanisms.
Key Facts
- Represents maximum interest rates for short-term bank deposits
- Covers CDs with balances under $100 million
- Updated periodically to reflect current market conditions
FAQs
Q: How often is the National Rate Cap updated?
A: The rate is typically updated weekly by the Federal Reserve to reflect current market conditions and monetary policy.
Q: Why do banks use this rate?
A: Banks use this rate as a benchmark for setting their own certificate of deposit rates and managing their deposit strategies.
Q: How does this rate impact consumers?
A: This rate directly influences the interest consumers can earn on short-term savings deposits and certificates of deposit.
Q: What factors influence this rate?
A: The rate is influenced by Federal Reserve monetary policy, inflation expectations, and overall economic conditions.
Q: Are there limitations to this rate?
A: The rate represents a national average and may not reflect specific local or individual bank offerings exactly.
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Citation
U.S. Federal Reserve, National Rate Cap: 3 Month CD <100M [NRC3MCD], retrieved from FRED.
Last Checked: 8/1/2025