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The national average APY (Annual Percentage Yield) on a 5-year CD is 1.37% APY. However, the best 5-year CD rates offer up to 4.50% APY right now.
A 5-year CD may be ideal if you don’t need access to some of your savings for a few years. If you’re also interested in other CD term lengths, check out our overall best CD rates guide. Here are our top picks for 5-year CDs.
The Best 5-year CDs
CFG Bank 5 Year CD – Product Name Only :CFG Bank 5 Year CD – APY APYBarclays 60 Month Online CD – Product Name Only :Barclays 60 Month Online CD – APY APYFirst Internet Bank of Indiana 5 Year CD – Product Name Only :First Internet Bank of Indiana 5 Year CD – APY APYFirst National Bank of America 5 Year CD – Product Name Only :First National Bank of America 5 Year CD – APY APYAlliant 5 Year Certificate – Product Name Only :Alliant 5 Year Certificate – APY APYQuontic 5 Year Certificate of Deposit – Product Name Only :Quontic 5 Year Certificate of Deposit – APY APY
These are our picks for the best 5-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best 5-year CDs
Expert Advice on Choosing the Best 5-year CD
To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:
Insider
- Tania Brown, CFP at SaverLife
- Roger Ma, CFP with lifelaidout® and author of “Work Your Money, Not Your Life”
- Sophia Acevedo, CEPF, banking reporter, Personal Finance Insider
- Mykail James, MBA, CFEI, BoujieBudgets.com
Here’s what they had to say about CDs.
How do you decide how long your CD term should be?
CDs come in different terms that range from months to years, and a 5-year CD is typically one of the longest terms available. When choosing the right term for you, start with how you’re going to use the money, and when. If you’re buying a house in five years and know you won’t need the money until then, a 5-year CD might work for your needs — however, if you’re buying that house in two years, you’ll need to choose a shorter term.
Once you know when you’ll need the money, you can take a look at available rates. Maybe you have some flexibility around when you’ll need the money, and find it worth leaving in the bank an extra six months or year to get a higher rate.
Should you put money in a high-yield savings account, money market account, or CD?
You’re allowed to have multiple types of accounts, and it’s OK to put money in different places for different purposes. Perhaps you want a high interest rate on money you can access at any time for an emergency, so you put that emergency fund in a high-yield savings account. Then, you want a savings account from which you can make regular withdrawals, so you use a money market account. Finally, you want to keep a nest egg out of sight and out of mind while earning a strong interest rate, so you use a CD.
Choosing which type of account to use comes down to how you plan to use that money, and when.
Methodology: How Did We Select the Best 5-Year CDs?
First, we researched to find over 20 banks and credit unions that offered 5-year CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
5-year CD Frequently Asked Questions
What is a 5-year CD?
A 5-year CD is a type of savings account with a fixed interest rate. With a 5-year CD, you’ll deposit your money for 60 months. Once your term ends, you’ll have the option to renew the CD or close the account and withdraw your money.
How does a 5-year CD work?
A 5-year CD works by maintaining the same interest rate for the entire term. For example, if you open a 5-year CD at a 4.60% APY, you’ll earn 4.60% for the entire five years. If you renew your CD after it matures, you’ll earn the new rate available in five years.
Some institutions may offer unique CDs called step-up CDs or Raise Your Rate CDs. These CDs have a variable interest rate and allow your rate to change.
Which CD should I choose: a 1-year, 3-year, or 5-year CD?
If your priority is earning a high interest rate, 3-year CDs and 5-year CDs generally offer higher rates than 1-year CDs. However, with a 3-year or 5-year CD, you could ultimately miss out on higher rates in the long run.
If you select a short-term CD, you may have the chance to snag a better interest if rates are up in a year. But on the other hand, you could avoid lower rates with a 3-year or 5-year term if rates drop later.
Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths. That way you can take advantage of higher rates with longer terms, but also access some of your money earlier.
Which is better, a 5-year CD or a high-yield savings account?
If you’re looking for ways to make more interest on your money, you might want to explore both types of savings accounts before making your decision.
Generally, online banks pay higher interest rates on 5-year CDs than high-yield savings accounts. On the other hand, a CD also locks in your rate for the entire term. If rates are dropping, a CD could be a better choice, because your savings account interest could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up.
You may prefer a high-yield saving account over a CD if you want quick access to your money. With a high-yield savings account, you should be able to access funds from your savings account regularly. If you need access to money from your 5-year CD before it matures, there’s an early withdrawal penalty.
Another thing to keep in mind is that CDs only allow you to deposit money when you open an account or once your CD has matured. With a savings account, you can deposit money at any time.
Which is better, a 5-year CD or a money market account?
Similar to a high-yield savings account, you can add more funds to your money market account over time. A money market account also may be a good choice if you want a savings account that has a debit card or paper checks.
If you open a CD, you’ll only be allowed to make a deposit when you first open the account or when it’s renewed. You’ll also have to pay an early withdrawal penalty on most CDs if you need to take out money before the end of a term.
Is a 5-year CD a good investment?
If you need to access your money in five years and want a guaranteed rate of return, a 5-year CD is a better choice than a different type of investment account.
CDs are a type savings account, and aren’t typically considered investments. CDs are a low-risk place to keep your money and do not offer high returns.
If you want to take more risk with your money and do not need access to it in a couple of years, then you may want to invest in the stock market. Brokerage accounts, for example, are useful tools to build long-term wealth. Tax-advantaged retirement accounts, like a 401(k) or IRA, are other options you can consider as well.
Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up for your losses.
CFG Bank 5 Year CD – Product Name Only
Why it stands out: CFG Bank has a high interest rate on its 5-year CD. The early withdrawal penalties are also lower than some of our other top picks.
APY for 5-year CD:
5-year CD early withdrawal penalty: 180 days of interest
What to look out for: CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 18-month, 36-month, or 60-month CDs. If you’d like more CD variety, you might prefer one of the other options on our list.
Barclays 60 Month Online CD – Product Name Only
Why it stands out: Barclays CDs may be a good option if you prioritize opening an account with a low initial deposit and low early withdrawal penalties.
APY for 5-year CD:
5-year CD early withdrawal penalty: 180 days of interest
What to look out for: Barclays doesn’t offer a checking account. If you’re also looking to open a checking account at the same bank, you might prefer one of our other top picks.
First Internet Bank of Indiana 5 Year CD – Product Name Only
Why it stands out: First Internet Bank of Indiana might be appealing if you’re searching for a bank that offers a variety of CD terms. The bank is also featured in our best money market account guide.
APY for 5-year CD:
5-year CD early withdrawal penalty: 360 days of interest
What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 5-year CD.
First Internet Bank of Indiana review
First National Bank of America 5 Year CD – Product Name Only
Why it stands out: First National Bank of America lets you open CDs online from anywhere in the US, and it offers a variety of terms.
You also might like First National Bank of America if you live in Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.
APY for 5-year CD:
5-year CD early withdrawal penalty: 540 days of interest
What to look out for: First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about CD early withdrawal penalties.
First National Bank of America review
Alliant 5 Year Certificate – Product Name Only
Why it stands out: Alliant pays high rates on CDs and has reasonable early withdrawal penalties.
APY for 5-year CD:
5-year CD early withdrawal penalty: 180 days of interest
What to look out for: Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.
Quontic 5 Year Certificate of Deposit – Product Name Only
Why it stands out: Typically, you need at least $1,000 to open a CD at most banks. Quontic Bank could be a good choice if you want to get a 5-year CD with a low minimum opening deposit. Quontic also has 6-month, 1-year, 2-year, and 3-year CDs.
APY for 5-year CD:
5-year CD early withdrawal penalty: 2 years of interest
What to look out for: Quontic charges high penalties if you need to withdraw money before your term ends. You might prefer one of our other top picks if you would like to open a 5-year CD with a more lenient early withdrawal penalty.
Other 5-Year CDs We Considered
We looked at the following 5-year CDs as well. However, our top picks may have higher interest rates, lower minimum opening deposits, and lower early withdrawal penalties, which make them more compelling options.
Crescent Bank CD – Product Name Only : Crescent Bank’s 5-year certificate pays a lower interest rate than our top picks.Synchrony CD – Product Name Only : Synchrony CDs have a low minimum opening deposit, but other financial institutions offer high rates on long-term CDs.Discover CD – Product Name Only : Other financial institutions offer more competitive interest rates on 5-year CDs or lower minimum opening deposit requirements.Ally High Yield CD – Product Name Only : Ally CDs have low minimum opening deposits, but our top picks all pay higher interest rates.Bread Savings High-Yield CD – Product Name Only : Bread Savings has short-term CDs with high interest rates, but its long-term CDs aren’t as competitive.Marcus by Goldman Sachs High-Yield CD : Marcus has low minimum opening deposits on accounts, but our top picks pay higher interest rates right now.Pentagon Federal Credit Union Money Market Certificate : Pentagon Federal Credit Union has high interest rates for its 1-year and 18-month CDs. However, you’ll find a more competitive interest rate at one of the financial institutions we’ve featured as a top pick.Bethpage Federal Credit Union Certificate Account : Bethpage Federal Credit Union has a variety of terms. However, its rates are low compared to our top picks.Nationwide CD : Nationwide’s 1-year and 18-month CDs are its most appealing options, but its other terms aren’t as strong.Delta Community Credit Union Certificate of Deposit : Delta Community Credit Union pays solid interest rates, but our top picks offer even higher interest rates.VyStar Credit Union Certificate of Deposit : Vystar Credit Union may be a good option in you live in Florida or Georgia.Golden 1 Credit Union Certificate of Deposit : Golden 1 Credit Union may be worth considering if you live in California.Suncoast Credit Union Share Certificate : Suncoast Credit Union has solid interest rates, but our top picks offer more competitive rates right now.Popular Direct Certificate of Deposit : Popular Direct pays a high interest rate, but you’ll need a minimum ofPopular Direct Certificate of Deposit .CIT Bank CD : A 5-year CIT Bank CD offers a low interest rate compared to the banks on our list.Washington Savings Bank CD : Washington Savings Bank pays solid interest rates, but our top picks offer even higher interest rates.Citizens Access Online Certificate of Deposit : Citizens has high interest rates on online CDs, but you’ll need a minimum ofCitizens Online Certificate of Deposit .BrioDirect High-Yield CD : BrioDirect has a variety of CD terms, but its 5-year CD rate isn’t as strong as the institutions we’ve chosen.Sallie Mae CD : You’ll need at leastSallie Mae Certificate of Deposit . Our top picks have lower minimum opening deposits.Amerant CD : Amerant pays solid interest rates, but our top picks offer even higher interest rates.American Express CDs ®: American Express has a low minimum opening deposit, but our top picks pay higher interest rates.Live Oak Bank Certificate of Deposit : You’ll need at leastLive Oak Bank Certificate of Deposit for an initial deposit. Our top picks will let you open an account with less money upfront.America First Credit Union Certificate : America First Credit Union has a solid interest rate, but our top picks offer even higher rates.NBKC CD : NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.Connexus Share Certificate : Connexus requires a minimum opening deposit ofConnexus Credit Union Share Certificate . Our top picks have much lower minimum opening deposits.TAB CD : TAB Bank has a solid interest rate, but our top picks offer even higher rates.
Bank Trustworthiness and BBB Ratings
We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:
| Institution | BBB rating |
| CFG Bank | NR |
| Quontic | A+ |
| First Internet Bank of Indiana | A+ |
| First National Bank of America | A+ |
| Alliant Credit Union | A+ |
| Barclays | A+ |
CFG Bank does not have a rating because its profile is being updated.
A good BBB rating doesn’t necessarily mean that your relationship with the bank will be perfect. Talk to current customers or read online customer reviews to get a more well-rounded perspective about whether the bank may be ideal for you.