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The national average APY (Annual Percentage Yield) on a 5-year CD is 1.38% APY. However, the best 5-year CD rate is
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.
We check rates daily to find the best rates for 5-year terms Here are our top picks for 5-year CDs.
Best 5-Year CD Rates
BMO Alto 5 Year High Yield CD - Product Name Only :BMO Alto 5 Year High Yield CD - APY APYUS Senate Federal Credit Union 5 Year Smart Share Certificate - Product Name Only :US Senate Federal Credit Union 5 Year Smart Share Certificate - APY APYMYSB Direct 5 Year CD - Product Name Only :MYSB Direct 5 Year CD - APY APYFirst National Bank of America 5 Year CD - Product Name Only :First National Bank of America 5 Year CD - APY APYBread Savings 5 Year High-Yield CD - Product Name Only :Bread Savings 5 Year High-Yield CD - APY APYPopular Direct 5 Year CD - Product Name Only :Popular Direct 5 Year CD - APY APYCrescent Bank 5 Year CD - Product Name Only :Crescent Bank 5 Year CD - APY APYQuorum Federal Credit Union 5 Year Term Savings - Product Name Only :Quorum Federal Credit Union 5 Year Term Savings - 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
5-Year CD FAQs
What is the best 5 year CD rate right now?
The highest 5-year CD rate is
Are 5-year CDs worth it?
A 5-year CD is worthwhile if you're saving for a 5-year goal. You can lock in a fixed rate for five years and grow your savings. Take note that CDs have early withdrawal penalties and do not permit deposits after an account is open.
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 4.50% APY, you'll earn 4.50% for the entire five years. If you renew your CD after it matures, you'll earn the new rate available in five years.
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. 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.
5-Year CD Reviews
BMO Harris Alto 5 Year High Yield CD - Product Name Only
The
BMO Alto doesn't have a mobile app. Also, you can't go to a BMO Bank location to get customer support. That said, customer service for BMO Alto is available 24/7 by phone.
APY for 5-year CD:
5-year CD early withdrawal penalty: 180 days of interest
US Senate Federal Credit Union 5 Year Smart Share Certificate - Product Name Only
The US Senate Federal Credit Union 5-Year Smart Share Certificate pays a high CD rate. This credit union also offers great rates for 2-year and 3-year terms.
US Senate Federal Credit Union also has appealing jumbo CDs ($100,000 minimum opening deposit) and plus jumbo CDs ($200,000 minimum opening deposit) with even higher rates.
To join US Senate Federal Credit Union, you must work for a Select Employee Group, have a family member who is a current member, become a member of the U.S. Capital Historical Society or the American Consumer Council (you can join these organizations from anywhere in the US).
APY for 5-year CD:
5-year CD early withdrawal penalty: 360 days of interest
MYSB Direct 5 Year CD - Product Name Only
MYSB Direct CDs pay a competitive interest rate and have a low minimum opening deposit.
M.Y. Safra Bank is a New York-based financial institution that serves customers nationwide and its online-only division is MYSB Direct.
The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.
APY for 5-year CD:
5-year CD early withdrawal penalty: 90 days of interest
First National Bank of America 5 Year CD - Product Name Only
First National Bank of America CDs are available online from anywhere in the US, and come in 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.
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.
APY for 5-year CD:
5-year CD early withdrawal penalty: 540 days of interest
First National Bank of America Review
Bread Savings 5 Year High-Yield CD - Product Name Only
A
Keep in mind, Bread Savings only has a high-yield savings account and CDs, though.
Bread Savings CDs require at least
APY for 5-year CD:
5-year CD early withdrawal penalty: 365 days of interest
Popular Direct 5 Year CD - Product Name Only
You'll need at least
APY for 5-year CD:
5-year CD early withdrawal penalty: 730 days of simple interest
Crescent Bank 5 Year CD - Product Name Only
You may like a Crescent Bank CD if you're searching for a 5-year term. The online bank also has one of the best 3-year CD rates.
To open the
Crescent Bank CDs will automatically renew at the end of each term unless you call customer service to cash out your CD.
APY for 5-year CD:
5-year CD early withdrawal penalty: 180 days interest
Quorum Federal Credit Union 5 Year Term Savings - Product Name Only
Quorum Federal Credit Union Term Savings Accounts (which are similar to CDs) have a great interest rate for a 5-year term. You'll also get an additional 0.10% APY if you deposit $100,000 or more.
You must become a member of Quorum Federal Credit Union to open a CD. The easiest way to join regardless of where you live in the US is to join the American Consumer Council or Select Savers Club. You also may be eligible for membership if you work for a Select Employer Group on this list.
APY for a 5-year CD:
5-year CD early withdrawal penalty: 3% of the amount withdrawn
Quorum Federal Credit Union Review
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.
Barclays Online CD - Product Name Only : Barclays offers a lower interest rate on a 5-year term than our top picks.First Internet Bank of Indiana CD - Product Name Only : Our top picks offer the potential to earn a higher interest rate for a 5-year term than First Internet Bank of Indiana does.Latino Community Credit Union Share Certificate - Product Name Only : Latino Community Credit Union has high CD rates on short-term share certificates, but its long-term rates aren't as competitive as our top picks.Department of Commerce Federal Credit Union 5 Year Share CD - Product Name Only : Department of Commerce Federal Credit Union has a 5-year CD with a good interest rate. However, our top picks offer more competitive CD rates for a 5-year term, or let you open a CD with $0 upfront.Edward Jones CD - Product Name Only : Edward Jones has brokered CDs with interest rates much higher than the national average. However, you must have a brokerage account or bank account to open a CD. We also didn't include it on our list because brokered CDs work differently than traditional CDs — for example, you'll have to sell on a secondary market if you no longer want the CD for the full term.Delta Community Credit Union CD - Product Name Only : Delta Community Credit Union has a 5-year CD payingDelta Community Credit Union 5 Year CD - APY APY, which is just short of the rates on our list.Alliant Certificate - Product Name Only : Alliant Credit Union's 5-year CD paysAlliant 5 Year Certificate - APY APY, but our top picks have even more competitive 5-year terms.CFG Bank CD - Product Name Only : CFG pays solid interest rates on CDs, but you'll earn higher rates with our top picks.Quontic CD - Product Name Only : Quontic 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.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.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.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 |
| BMO Alto | A+ (rating of BMO Bank) |
| MYSB Direct | NR (rating of parent bank, M.Y. Safra Bank) |
| United States Senate Federal Credit Union | A- |
| First National Bank of America | A+ |
| Bread Savings | A+ |
| Popular Direct | A+ (rating of parent bank, Popular Bank) |
| Crescent Bank | A+ |
| Quorum Federal Credit Union | A+ |
MYSB Direct currently has an NR (No Rating) grade because the BBB doesn't have enough information to provide a rating.
US Senate Federal Credit Union also has an A- rating because it hasn't responded to one customer complaint.
According to a note on the BBB website, the BBB may publish one out of every four complaints it receives on Comenity Bank as of April 23, 2023, because it has received a high volume of customer complaints.
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.
BMO has been involved in one recent public controversy. In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO bought M&I Bank in 2011.
Why You Should Trust Us: 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, Personal Finance 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.
Our Methodology
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.