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Five-year CD rates allow you to earn a guaranteed interest rate long term. While shorter CDs in 2024 have higher APYs and offer more flexibility, 5-year CDs could let you ride out today's high interest rates for a potentially longer period.
Here are some of the best 5-year CDs we've found.
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Why you can trust The Motley Fool Ascent
We pride ourselves on being able to confidently say that these CDs are chosen by personal finance experts that operate independently of our Partnerships team, meaning the picks on this page are not and never have been influenced by advertising deals.
Our Ratings team:
- Assessed 100+ banking institutions (see the full list here)
- Evaluates CDs by APYs, early withdrawal penalties, fees, and brand reputation (see our full CDs methodology here)
- Reevaluate products on this page quarterly
Our picks for the best 5-year CDs
Barclays Online CD
Bottom Line
Barclays offers competitive rates on most common CD terms with no minimum balance requirements. There are no monthly fees, so you likely won't lose money unless you try to withdraw your funds early. Those interested in building longer-term CD ladders will find plenty to like here.
Minimum Deposit $0
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 4.85% | 5.00% | 4.50% | 4.00% | 3.50% | 3.50% | 3.75% |
APY = Annual Percentage Yield
Discover® Bank CD
Bottom Line
Discover has a higher minimum balance requirement than some of its competitors, but its rates are competitive and you don't have to worry about getting hit with any fees unless you withdraw funds via wire transfer or choose to withdraw from your CD before it reaches its maturity date. It also offers some unique term lengths, including CDs as short as three months and as long as 10 years.
Minimum Deposit $2,500
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 30 Mo. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY | 7 Yr. APY | 10 Yr. APY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2.00% | 4.25% | 4.25% | 4.70% | 4.40% | 4.00% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
APY = Annual Percentage Yield
Quontic CD
Bottom Line
Quontic Bank offers CDs with terms ranging from six months to five years. It offers most of the terms one would expect, though it is missing a 4-year CD, so it may not be ideal for those hoping to build a CD ladder. Its rates are competitive, especially on its longer term CDs, and its minimum deposit is more affordable than what you see with some other top banks.
Minimum Deposit $500
| 6 Mo. APY | 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|
| 5.05% | 4.50% | 4.50% | 4.40% | 4.30% |
APY = Annual Percentage Yield
LendingClub CD
Bottom Line
LendingClub CDs don't skimp on interest, offering competitive APYs for all six of its CD terms, from six months to five years. They're also FDIC insured. One downside is that you'll need to commit at least $2,500 to open an account.
Minimum Deposit $2,500
| 6 Mo. APY | 10 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.00% | 5.20% | 4.20% | 5.00% | 4.50% | 4.30% | 4.00% |
APY = Annual Percentage Yield
Synchrony Online CD
Bottom Line
Perhaps one of the lesser-known names on the list, Synchrony is a full-line bank with a 90-year history. Synchrony's CDs are notable for competitive rates at most term lengths, plus low or no minimum deposits.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|
| 4.80% | 5.10% | 4.80% | 4.50% | 4.20% | 4.15% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Ally High Yield CD
Bottom Line
Ally High Yield CDs are notable for saver-friendly features like no minimum deposits and lower-than-average withdrawal penalties (though you're still better off holding through your CD term!). The rates are generally not at the very top of the market, but they tend to not be far off.
Minimum Deposit $0
| 3 Mo. APY | 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 3.00% | 4.40% | 4.25% | 4.50% | 4.25% | 4.00% | 3.90% |
APY = Annual Percentage Yield
Bread Savings CD
Bottom Line
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
Minimum Deposit $1,500
| 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|
| 5.25% | 4.65% | 4.25% | 4.15% | 4.15% |
APY = Annual Percentage Yield
Sallie Mae CD
Bottom Line
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
Minimum Deposit $2,500
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.10% | 5.15% | 5.25% | 4.90% | 4.50% | 4.00% | 4.00% |
APY = Annual Percentage Yield
Capital One 360 CD
Bottom Line
Backed by Capital One's well-known brand, the Capital One 360 CDs offer competitive rates across many common terms, though they're stronger in durations of a year or longer. There's no minimum deposit, so savers can benefit even if they don't have a large sum to deposit. Check Capital One's website for the most up-to-date rates.
Minimum Deposit $0
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|---|
| 4.25% | 4.25% | 5.00% | 4.45% | 4.00% | 4.00% | 3.95% | 3.90% |
APY = Annual Percentage Yield
Alliant CD
Bottom Line
Alliant offers CD rates across common terms that stack up well with other banks on this list. The credit union's rates hold up better than most though over the longer terms, so for savers interested in locking in rates for multiple years, Alliant could be a good home for your money. Note that the minimum of $1,000 is on the higher end for this list.
Minimum Deposit $1,000
| 6 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 4.75% | 5.15% | 4.90% | 4.30% | 4.20% | 4.05% | 4.00% |
APY = Annual Percentage Yield
How to compare the best 5-year CD rates
Most 5-year CDs offer the ability to earn a high APY. Right now you'll find top rates of between 3.75% and 4.35% APY.
That's high compared with the current national average on 5-year CDs (1.38%!) as reported by the FDIC.
While getting a high APY is important, it's not the only factor to take into account. As you're comparing CD providers, here are some other things to consider.
- Minimum deposit: Some CDs require you to commit several thousand dollars to open an account, while others will have no requirement whatsoever. Jumbo CDs may carry an even greater financial commitment.
- Fees: You are unlikely to be charged maintenance fees on a CD. However, a few do carry these charges. Double-check for unexpected fees before you open an account.
- Withdrawal penalties: If you end up needing funds before your CD fully matures, you might need to pay a withdrawal penalty. The amount you'll pay varies from bank to bank, but it typically equals a certain amount of interest you would earn, like three months' worth. If you think you might need the money sooner, weigh up the penalty you'll pay against the higher interest you'll earn.
- Compounding interest: Interest on CDs usually compounds daily, weekly, or monthly. An account that compounds daily will earn you slightly more money in the long run because you'll be earning interest on your interest every day.
- Interest payouts: Many CD providers let you choose whether to add your interest to your account balance or receive a payout monthly, quarterly, or even annually. So, if you're interested in receiving your CD interest early, make sure your bank allows you to withdraw your earnings.
- FDIC insurance: Make sure that the CD that you choose is FDIC insured, which will cover up to $250,000 per depositor. Although this seems like a given, it's always good to verify details like this -- especially during times when security is at a premium. CD funds held at credit unions are protected by the NCUA.
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Rates as of June 7, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 3.75% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 3.75% | Term: 5 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.30% | Term: 5 Year | Min. Deposit: $500 | |
Member FDIC.
| APY: 4.00% | Term: 5 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 4.00% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.15% | Term: 5 Year | Min. Deposit: $1,500 | |
| APY: 4.00% | Term: 5 Year | Min. Deposit: $2,500 | |
Member FDIC.
| APY: 3.90% | Term: 5 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.00% | Term: 5 Year | Min. Deposit: $1,000 |
Sorry, we didn't find any CDs that meet those criteria.
What is a 5-year CD?
A 5-year CD is a savings vehicle that locks your money up for 60 months in exchange for an annual percentage yield (APY). Normally, 5-year CDs have higher interest rates than CDs with shorter terms. But in today's high rate environment, which is more favorable to short-term CDs, 5-year CDs have slightly lower rates. That said, today's 5-year CD rates are very competitive compared to previous years.
Will 5-year CD rates increase in 2024?
It's unlikely that 5-year CD rates will increase in 2024. In fact, many projections suggest that CD rates will start dropping later this year. CD rates generally follow the direction of the Federal Reserve's federal funds rate, which is expected to be lowered sometime in 2024. If the Fed decides to change the funds rate in 2024, you can expect CD providers to adjust their rates accordingly.
Pros and cons of a 5-year CD
Opening a 5-year CD account can be a great investment, but it also has its drawbacks:
| Pros of 5-year CDs | Cons of 5-year CDs |
|---|---|
| Higher rates: 5-year CDs usually have higher interest rates than savings accounts. | Potential to miss out on higher rates: If market interest rates skyrocket, your CD's interest rate will stay the same. Opening a 5-year CD may tie you into a low rate long term. |
| Fixed rates: Most CDs have fixed rates, which means your interest rate is locked in for the entire 5-year term. It won't change even if market rates drop. | Early withdrawal penalties: You'll get hit with costly early withdrawal penalties if you touch your CD before it reaches maturity. |
| Predictable returns: Thanks to fixed rates, you can easily calculate how much interest you'll earn over five years. | Inflation risk: There's always a chance that your earnings from a 5-year CD don't keep up with inflation. |
Who is a 5-year CD right for?
A 5-year CD is right for people who won't need to withdraw funds before the term ends. You'll get hit with a penalty fee if you pull your funds before maturity. Some or all of the interest you've earned up until that point may disappear.
To recap, the highest 5-year CD rates
| Offer | APY | Min. Deposit |
|---|---|---|
| 3.75% - 5 Yr. | $0 | |
| 3.75% - 5 Yr. | $2,500 | |
| 4.30% - 5 Yr. | $500 | |
| 4.00% - 5 Yr. | $2,500 | |
| 4.00% - 5 Yr. | $0 | |
| 3.90% - 5 Yr. | $0 | |
| 4.15% - 5 Yr. | $1,500 | |
| 4.00% - 5 Yr. | $2,500 | |
| 3.90% - 5 Yr. | $0 | |
| 4.00% - 5 Yr. | $1,000 |
APY = Annual Percentage Yield
Other CD term lengths to consider
Our CDs methodology
At The Motley Fool Ascent, our certificates of deposit (CDs) ratings primarily focus on annual percentage yield (APY) and early withdrawal penalty fees. Our highest-rated CDs generally include competitive APYs without complex qualification tiers, low withdrawal fees, reliable brand trust and reputation, and ease of use.
The Ascent tracks just standard CDs, not IRA, bump up, callable, and other less popular CD accounts. CD rates displayed on this Best 5-Year CD Rates pages are comprised of both the highest CD rates in The Ascent’s universe of tracked rates and featured placements from advertisers. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list.
Learn more about how The Motley Fool Ascent rates bank accounts.
Banks we monitor
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Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
FAQs
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5-year CDs typically offer a significantly higher APY than CDs with shorter terms. Depending on your initial deposit amount, you can earn more interest by opening a 5-year CD.
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A 5-year CD is worth opening if you can afford to deposit funds and leave them untouched for that long. If not, then it's better to opt for a shorter term or reduce your risk through CD laddering.
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Like other CD terms, you open a 5-year CD with an initial deposit in exchange for an interest rate. As long as you leave your deposit in the CD account for five years, your money will grow at the advertised rate. For instance, if you deposit $10,000 in a 5-year CD with an APY of 4.20%, you would earn roughly $2,284 in interest for a total of $12,284 at the end of your term.
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