The best 5-year CD rate is 4.80% APY from BMO Alto. To find you the highest 5-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. CD terms of 54–66 months are eligible for our 5-year rankings, with minimum deposit requirements of up to $25,000. For savings that are better kept in the bank than invested in the market, certificates of deposit offer a way to earn more than you might with a standard savings account. Below are the top CD rates available from our partners, followed by the best CD rates that we've found fromour researchthat are available to U.S. customers everywhere. The Fedheld rates steady for a seventh consecutive timeat its June 12meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow thefed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall. You can find our ranking of the highest CD rates with terms of 54–66 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortestterm, then the CD requiring a smallerminimum deposit, and if still a tie, alphabetically by institution name. Detailed information on these top-paying 5-year CDs is provided below, including specifics about minimum deposits and early withdrawal penalties. For credit union CDs, information is also provided on how anyone can join the credit union. Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years. *Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. But the fine print indicates that for deposits of $25,000, a 0.10% premium applies. When asked in late April what they would invest in if they had an extra $10,000,12% of Investopedia readerssaid they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments. Pros Interest rate is locked for five years Pays completely predictable earnings Extremely safe Potentially higher APY than other options Discourages spending Cons Penalty imposed if you withdraw early Only allows a single deposit If rates rise, you're locked at a lower rate until maturity Future interest rates are impossible to predict Beware of early withdrawal penalties that can eat into your CD's principal. Losing earned interest when incurring a penalty is to be expected, but avoid certificates where even your principal deposit could be at stake. Though banks and credit unions often pay higher rates on 5-year CDs than on shorter terms, this isn't always the case. So it can be smart to consider a shorter CD if it allows you to earn a higher APY. This is especially true if national interest rates are already elevated or are expected to rise in the coming years. In addition to possibly earning a higher rate, choosing a shorter-term CD lets you make another choice with your money sooner than if you have to wait for a five-year term to expire. Just be aware that when your shorter-term CD matures, the rates you're able to get then could be quite a bit less than the rate you were able to lock in for five years. Another option for your funds is a high-yield savings or money market account. When rates are high, the best high-yield savings accounts and best money market accounts may offer rates competitive with a 5-year CD. But it's critical you understand that these are variable rates that can change at any time. If interest rates start going down, so too will savings and money market rates, while CD rates will be locked at your initial APY. The advantage, however, is that you can withdraw your funds at any time from a savings or money market account, giving you more flexibility for funds you're not confident about locking up in a CD. Instead of CDs or bank accounts, you can also put your funds into bond instruments, which come in a wide spectrum of types. For instance, you can buy U.S. Treasury savings bonds, like I bonds or EE bonds. Also backed by the U.S. Treasury are Treasury bills and notes. T bills have durations of up to one year, while Treasury notes have terms of 2 to 10 years. U.S. savings bonds, treasury bills and treasury notes are among the safest investments you can buy. You can also invest in municipal or corporate bonds, though the research and decision-making required to choose individual bonds may be more challenging than many savers are equipped or inclined to decipher. An easier option is to invest in a bond mutual fund or bond ETF (exchange traded fund), which bundles hundreds or thousands of bonds into one fund and enables you to enter and exit the fund anytime you like. For money you plan to hold as long as five years, a conservative investment in the stock market is an alternative option. And if the five years in which you're invested in the market are a period of growth, you can earn considerably more with stocks than a fixed-rate CD. However, the significant downside is that preserving your principal is not guaranteed in the market. You can very easily lose some of your investment, unlike money held in a CD. So if keeping your savings reliably intact is important to you, a CD will serve you better than an equity investment. Opening a certificate of deposit involves making an agreement with a financial institution that you will deposit a certain amount of money in an account that you won't touch, in exchange for earning a premium on the rate of return. You'll also be guaranteed that interest rate for the life of the certificate. Five-year certificates are useful savings vehicles in a number of situations. For instance, if national interest rates are expected to fall over the coming few years (i.e., you're in a declining rate environment), it would be beneficial to lock in one of today's more favorable rates for the coming five years. Socking money away in a 5-year CD can also be a helpful strategy if you're saving up for a large financial goal. Perhaps it's money for a down payment on a house. Or maybe you have money saved for your child's college education and you'll need it for tuition in five to six years. By putting it in a CD, you can ensure it earns interest and doesn't lose principal, while also putting a mechanism in place to discourage you from dipping into the funds for other purposes. Certificates of deposit are available from brick-and-mortar banks, online-only banks, internet banking divisions of traditional banks, and credit unions. For the most part, there is little difference between CDs from these different types of institutions. The biggest difference is that opening a CD with a credit union requires you to be a member of that credit union. The credit union certificates we include in our rankings all allow a method for anyone nationwide to join. However, doing so sometimes requires a small donation or fee (though not always). As for CDs from different bank types, there is little difference. You may be able to make an in-branch visit to physical banks that operate in your area, while you can only open an account at an internet banks online. But aside from the physical presence of a bank (or lack thereof), CDs from different banks will function generally the same way. These different institution types can pay very different rates. Credit unions are not-for-profit institutions and sometimes offer their members better rates than banks do. As a result, you'll see credit unions ranking prominently for longer terms like 5-year certificates. Online banks also tend to pay higher APYs than traditional banks, as their no-presence business model costs less to maintain than brick-and-mortar institutions. These overhead cost savings are often then passed to consumers via better interest rates. In theory, the longer you're willing to deposit your funds, the higher the interest rate the bank or credit union will offer you. Unfortunately, this does not always hold true, as the rate institutions are willing to pay depends largely on the market's prediction about where future rates will go. For instance, when rates have been rising for a while and are expected to soon reach a peak, shorter and mid-term CDs often pay the best rates because banks don't want to get stuck paying the current elevated rate for years after rates begin to subside. In contrast, if rates have been low for a while and begin to rise, with expectations they will climb for a bit, banks are more interested in enticing customers with a high long-term rate because they expect rates will be much higher in the future. The good news is that it's easy to see which CD term is paying the best rate at any given time by visiting our daily ranking of the best CD rates. Here you can always see which terms are currently paying the highest yields. Keeping your certificate funds on deposit until maturity is the best way to maximize your earnings. But sometimes life gets in the way, with unexpected financial needs arising. For this reason, every bank or credit union offering CDs has a written policy on the penalty it will apply should you cash the CD out early. Most typically, the penalty involves you forfeiting some number of months of interest. For example, the early withdrawal penalty on a 5-year CD might be 12 months of interest. That means an amount equal to what the CD would have earned in a year would be deducted from your balance before liquidating the proceeds. Early withdrawal penalties are set individually by each bank or credit union, and they run a wide gamut from mild to exceptionally onerous. But even if you don't expect to need an early cash-out, it's smart to determine the early withdrawal penalty in advance of committing to any CD you're considering. A CD ladder is a strategy that enables you to earn 5-year rates while keeping a portion of your CD funds accessible every year. Here's how it works: We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision: 1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, , EverBank, TotalDirectBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Federal Reserve. "Federal Reserve Issues FOMC Statement." Federal Reserve. "Summary of Economic Projections." Related Terms What Is a Certificate of Deposit (CD)? Pros and Cons A certificate of deposit (CD) is a type of savings account offered by banks and credit unions. It pays a fixed interest rate for a set period of time. more Add-On CDs: Meaning, Pros and Cons, Example Add-on CDs are specialty CDs that allow you to add more funds to your CD after the initial deposit. Learn whether an add-on or standard CD is a better choice for you. more Promotional Certificate of Deposit (CD) Rate: Everything You Need to Know A promotional certificate of deposit (CD) rate is a higher rate of return on a CD offered by banks and credit unions to attract new deposits. more Jumbo Certificate of Deposit (CD): What It Is, Pros and Cons A jumbo certificate of deposit (CD) is a type of savings account with higher balance requirements than a traditional CD. It generally pays a higher interest rate. more CD Ladder: What It Is and How to Build One A CD ladder is an investing strategy which you buy multiple certificates of deposit (CDs) with different maturity dates. Learn how to build a CD ladder. more Types of Specialty Certificates of Deposit (CDs) Explained Specialty CDs offer features such as the ability to add to the principal or avoid early withdrawal fees. Some options offer more flexibility but may have lower rates than standard CDs. moreIn the News
Best 5-Year CD Rates
BMO Alto – 4.80% APY
Grow Financial Federal Credit Union – 4.75% APY
Credit Human – 4.65% APY
Pima Federal Credit Union – 4.50% APY
Dow Credit Union – 4.50% APY
Seattle Bank – 4.50% APY
First Internet Bank – 4.50% APY
First National Bank of America – 4.50% APY
Farmers Insurance Federal Credit Union – 4.50% APY
Department of Commerce Federal Credit Union – 4.45% APY*
The Federal Savings Bank – 4.45% APY
Crescent Bank – 4.40% APY
Colorado Federal Savings Bank – 4.35% APY
Lafayette Federal Credit Union – 4.32% APY
MYSB Direct – 4.31% APY
Fast Fact
Pros and Cons of a 5-Year CD
Pros Explained
Cons Explained
Compare the Best 5-Year CDs
Institution Rate (APY) Term Minimum Deposit Early Withdrawal Penalty BMO Alto 4.80% 60 months Any amount 6 months of interest Grow Financial Federal Credit Union 4.75% 60 months $500 6 months of interest Credit Human 4.65% 36–59 months $500 12 months of interest ($50 minimum) Pima Federal Credit Union 4.50% 60 months $250 50% of the interest left to be earned through the end of the term Dow Credit Union 4.50% 60 months $500 12 months of interest Seattle Bank 4.50% 60 months $1,000 6 months of interest First Internet Bank 4.50% 60 months $1,000 12 months of interest First National Bank of America 4.50% 60 months $1,000 18 months of interest Farmers Insurance Federal Credit Union 4.50% 60 months $1,000 Complex formula with a minimum penalty of 6 months' interest Department of Commerce Federal Credit Union 4.45% 48–59 months $25,000 6 months of interest The Federal Savings Bank 4.45% 60 months $5,000 12 months of interest Crescent Bank 4.40% 60 months $1,000 6 months of interest Colorado Federal Savings Bank 4.35% 60 months $5,000 6 months of interest Lafayette Federal Credit Union 4.32% 60 months $500 20 months of interest MYSB Direct 4.31% 60 months $500 All interest (3 months minimum) Alternatives to a 5-Year CD
Shorter-Term CDs
High-Yield Savings or Money Market Accounts
Bond Investments
Stock Equities
Frequently Asked Questions
How Does a 5-Year CD Work?
How Do CDs From Traditional Banks, Online Banks, and Credit Unions Differ?
Which CD Term Pays the Highest Rate?
What If I Need to Withdraw My Money Early?
How Do You Build a CD Ladder?
Financial Institutions We Review
How We Find the Best 5-Year CD Rates
Best 5-Year CD Rates for June 2024 (2024)
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