In our recent CD survey, 60.32% of our 1,000 respondents opened CDs to reach long-term savings goals. If that’s what you’re working on, a five-year CD could be a worthwhile savings option since it typically offers higher returns.
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Learn more about the highest CD rates.
Best 5-Year CD Rates for January 2025
To find the best five-year CD rates, we researched more than 100 financial institutions. We considered the overall banking experience and coverage through the National Credit Union Administration (NCUA) or Federal Deposit Insurance Corp. (FDIC).
The banks and credit unions on our list received high ratings in the CD category of our review for traits including competitive APYs, low minimum deposit requirements, and a variety of CD term lengths.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
Quontic
First Internet Bank (of Indiana)
First National Bank of America
BMO Alto
Barclays
Alliant Credit Union
BMO
Compare the Best 5-Year CDs
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
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Our CD Star Rating
5 Year CD APY*
3.00%
Minimum Deposit
$500
|
|
Our CD Star Rating
5 Year CD APY*
3.67%
Minimum Deposit
$1,000
|
|
Our CD Star Rating
5 Year CD APY*
3.83%
Minimum Deposit
$1,000
|
|
Our CD Star Rating
5 Year CD APY*
4.00%
Minimum Deposit
$0
|
|
Our CD Star Rating
5 Year CD APY*
3.25%
Minimum Deposit
$0
|
|
Our CD Star Rating
5 Year CD APY*
3.65%
Minimum Deposit
$1,000
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Our CD Star Rating
5 Year CD APY*
4.00%
Minimum Deposit
$1,000
|
| Financial Institution | Our CD Star Rating | 5 Year CD APY* | Minimum Deposit | Learn More |
|---|---|---|---|---|
| 3.00% | $500 | |||
| 3.67% | $1,000 | |||
| 3.83% | $1,000 | |||
| 4.00% | $0 | |||
| 3.25% | $0 | |||
| 3.65% | $1,000 | |||
| 4.00% | $1,000 |
| Financial Institution | Our CD Star Rating | 5 Year CD APY* | Minimum Deposit | Learn More |
|---|---|---|---|---|
| 3.00% | $500 | |||
| 3.67% | $1,000 | |||
| 3.83% | $1,000 | |||
| 4.00% | $0 | |||
| 3.25% | $0 | |||
| 3.65% | $1,000 | |||
| 4.00% | $1,000 |
*APYs valid as of November 14, 2024. Rates may vary by location. BMO’s rate is for Chicago and a 59-month CD.
Highest 5-Year CD Rates Today
The table below includes the highest 5-year certificate of deposit (CD) rates available today.
| Financial Providers | CD Term | APY |
|---|---|---|
| Dakota Community Bank & Trust | 5 years | 4.30% |
| Alliance Bank Central Texas | 5 years | 4.32% |
| Sullivan Bank | 5 years | 4.25% |
| KS StateBank | 5 years | 4.25% |
| Sterling Bank | 5 years | 4.25% |
| Popular Direct | 5 years | 4.25% |
| Security Bank | 5 years | 4.06% |
| Evangeline Bank & Trust Company | 5 years | 4.00% |
| Cornhusker Bank | 5 years | 4.02% |
| Bank Five Nine | 5 years | 4.00% |
CD CALCULATOR
Certificates of deposit generally have higher interest rates, but less flexibility, than savings accounts. Enter your deposit, CD term and annual percentage yield (APY) to see what you would earn on a certificate of deposit.Factors To Consider When Choosing a 5-Year CD
When choosing a five-year CD, look at these important factors:
The institution offering the CD should have good service, convenient ways to manage your CD and a solid reputation. It should also be NCUA- or FDIC-insured.
While standard five-year CDs are most common, some financial institutions have jumbo CDs for large balances and IRA CDs for retirement savers. You can also find long-term CDs that let you make additional deposits and penalty-free interest withdrawals.
You’ll need enough money to fund the CD and get the highest advertised rate. Consider options without a minimum if you need flexibility.
Check with financial institutions to find a rate you’re comfortable with. Research any balance tiers, rate guarantees and renewal bonuses, too.
To reduce your risk of losing the interest you earn, look for a bank with a reasonable early withdrawal penalty.
Alternatives to 5-Year CDs
Instead of five-year CDs, you might consider CDs with different term lengths or other safe bank account options.
5-Year CDs vs. Other Term Lengths
CD terms shorter than five years reduce your commitment and the risk of needing a costly early withdrawal. These shorter-term CDs can offer more variety, including bump-up and no-penalty CD options, and many currently pay higher interest rates. The drawback is having a guaranteed APY for less time since rates may be lower when your CD matures and you’re ready to reinvest.
You can find longer CD terms of up to 10 years, though they’re less common. While you could lock in a competitive rate for longer, you may have a higher risk of needing to make an early withdrawal.
Currently, longer-term CDs tend to offer slightly lower rates than five-year CDs. For instance, PenFed Credit Union offers 3.20% APY on its five-year CD and 3.00% APY on its seven-year CD, and USAA Bank offers 1.50% on its five-year CD and 1.50% on its seven-year CD.
| Term | National Average | Highest CD Rate Today |
|---|---|---|
| 3-Month CDs | 1.64% APY | 5.05% APY |
| 6-Month CDs | 2.37% APY | 5.01% APY |
| 1-Year CDs | 2.40% APY | 5.15% APY |
| 3-Year CDs | 1.90% APY | 4.86% APY |
| 5-Year CDs | 1.91% APY | 4.30% APY |
5-Year CDs vs. Savings Accounts
With a savings account, you don’t have to wait five years to access your money without paying a penalty. Unless your bank sets limits, you can make frequent withdrawals and deposits. This makes savings accounts useful for short-term personal finance goals. Your bank might provide a debit card for ATMs. Savings accounts also tend to have lower initial deposit requirements than CDs.
Interest rates for five-year CDs are typically fixed, but the bank can change your savings account’s rate at any time. The return can also be much lower, especially with a standard savings account. The national average interest rate for a five-year CD is 1.91%, which is significantly higher than the average savings rate of 0.47%. However, some banks and credit unions offer high-yield savings accounts that match or beat five-year CD rates.
5-Year CDs vs. Money Market Accounts
You might consider a money market account over a five-year CD if you want something similar to a checking account with a debit card or checks. There may be monthly withdrawal limits, but you can make as many deposits as you want.
Like a five-year CD, a money market account might require a large deposit. The bank may also charge a monthly fee. Watch for minimum balance requirements, as they could affect your rate.
Money market accounts have variable rates like savings accounts, but they tend to be more competitive. While the national average interest rate for money market accounts (0.70%) is less than half the average for five-year CDs (1.91%), some online financial institutions have options with much higher rates.
How To Open a 5-Year CD Account
Here are the typical steps for opening a five-year CD account:
- Find the right option: Find a five-year CD with the features and terms that fit your needs at an FDIC- or NCUA-insured institution (look for one of these acronyms on the provider’s website, typically near the bottom of the homepage). Consider customer service options and branch locations too.
- Research CD application requirements: While you can usually apply online, some banks require phone or in-person applications for CDs. Check which information and documentation you’ll need as well as how to fund your account.
- Apply for the five-year CD: You’ll provide financial and personal details and possibly your government-issued ID and proof of address. Applications usually also ask for your preferences for receiving interest and renewing the CD.
- Fund your five-year CD: Check your bank for any funding deadlines. Use a bank transfer, debit card, check or other accepted method to deposit at least the minimum amount required in your new CD.
The Bottom Line: Is a 5-Year CD Right for You?
While five-year CDs require a long commitment to avoid penalties, they might fit your needs as a safe and profitable investment. Look for the best rates and consider the risk of a lengthy CD term. The locked-in APY is beneficial when national rates are expected to go down, but it could make you miss out on rate increases over the five years.
FAQ: Best 5-Year CD Rates
While the best CD rates frequently change, the highest-paying CDs are mostly from credit unions and online banks. The highest available rate on a five-year CD today is 4.32% APY from Alliance Bank Central Texas. With a $10,000 deposit, you could earn $2,343.02 in interest.
CD rates of 6% APY or higher occasionally can be found through credit unions, which have various membership requirements. These CDs usually have terms of under one year as well as deposit restrictions.
In rare cases, you can get 7% interest with premium checking accounts from credit unions. However, the high rate may only apply to a certain balance, or there may be direct deposit requirements. The credit unions may also have membership restrictions.
Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
For our list of the best five-year CD rates, we selected the highest-scoring financial institutions in our review of CDs. These banks and credit unions provide CD products available to customers throughout the U.S. and earn high scores for offering low or no minimum opening deposit and competitive yields on five-year terms.
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
*Rates accurate as of November 14, 2024
**Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
