Our pick for 5-year CDs: CIT Bank Term CDs
0.5%
5-year APY
- No maintenance fees
- $1,000 minimum to open
- Daily compounding interest
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Compare the best 5-year CD rates
Meet your goals with an untouchable long-term savings investment.
Compare the 14 best 5-year CD rates
Use the table below to compare five-year CDs by their APYs and minimum opening deposits. To compare select accounts against each other, check the Compare box under each account's name.
What are the best 5-year CD rates?
The best 5 year CD rates typically offer a higher APY in exchange for keeping your money locked away for a longer term. To find the best five year CDs, we researched options at over 75 financial institutions and selected those with the highest rates. Then, we filtered through those results by choosing the top 14 with national availability and low minimum deposit requirements.
- CIT Bank Term CDs: 0.5%
- Discover CDs: 0.6%
- First National Bank of America Online CD: 1.05%
- Ally High Yield CDs: 0.85%
- First Internet Bank CDs: 0.96%
- Synchrony Bank CDs: 0.8%
- Prime Alliance Bank CD: 0.75%
- Marcus by Goldman Sachs High-yield CDs: 0.75%
- Alliant Credit Union CD: 0.65%
- American Express CDs: 0.55%
- Vio Bank High Yield Online CDs: 0.5%
- Capital One 360 CD: 0.4%
- Barclays Online CDs: 0.3%
- Axos Bank CDs: 0.2%
What’s changed in 2021?
Early last year we saw 5-year CD rates as high as 3%. But they’ve dropped quite a bit due to the coronavirus pandemic. Due to these drops, our best list has changed and we added Axos Bank’s five year CD.
Alternative 5-year CD options
Looking for a credit union with high 5-year CD rates? These accounts have noteworthy APYs but didn’t make our list due to membership requirements. Depending on your financial situation, these runner-ups may be just what you’re looking for.
Pen Air FCU CDs
0.6%
1-year APY
1-year APY
0.95%
3-year APY
3-year APY
1.15%
5-year APY
5-year APY
$500
Min. opening deposit
Min. opening deposit
- Solid APY. You don't have to meet certain requirements to earn up to 1.15% APY on your total account balance.
- Penalty-free interest withdrawals. While you can't touch your principal balance for five years, you can withdraw your interest at any time for free.
- Membership discounts. Pen Air members get access to special discounts for TurboTax, Sprint, TruStage Auto Insurance and more.
- Limited customer service. The only way to reach customer service is by phone, US mail or by visiting a local branch.
- Early withdrawal penalty. Expect to pay a penalty equal to 180 days of interest if you need to access your funds early.
- Membership requirements. Pen Air is primarily open to active duty, civil service employees and retired military and their families. But anyone can become a member when they join the Friends of the Navy Marine Corps Relief Society.
| 3-month term | 0.4% |
|---|---|
| 6-month term | 0.45% |
| 12-month term | 0.6% |
| 15-month term | 0.6% |
| 18-month term | 0.7% |
| 24-month term | 0.8% |
| 48-month term | 1.05% |
| 60-month term | 1.15% |
Hiway Federal Credit Union CD
0.45%
1-year APY
1-year APY
0.75%
3-year APY
3-year APY
1.15%
5-year APY
5-year APY
$500
Min. opening deposit
Min. opening deposit
- Tiered APYs. Earn 1.05% APY on balances up to $9,999, 1.15% APY on balances up to $24,999 and 1.15% on balances over $25,000.
- Accessible interest. Withdraw your CD's interest at any time without penalty.
- $500 minimum deposit. Most 5-year CD's require higher minimum deposits.
- Early withdrawal penalty. You'll pay a fee equal to 365 days' interest if you withdraw your money before the five-year mark.
- Membership requirements. Hiway primarily serves those who live, work, worship or attend school in select areas of Minnesota. But anyone can become a member when they join the Association of the US Army.
| 3-month term | 0.35% |
|---|---|
| 6-month term | 0.25% |
| 12-month term | 0.45% |
| 48-month term | 1.1% |
| 60-month term | 1.15% |
State Department Federal Credit Union CD
N/A
1-year APY
1-year APY
1%
3-year APY
3-year APY
1.1%
5-year APY
5-year APY
$500
Min. opening deposit
Min. opening deposit
- No service fees. You won't pay anything to open or maintain this account.
- Relatively low deposit. $500 is quite low considering some institutions have required minimum deposits of $10,000 or more.
- High early withdrawal penalty. You'll lose 360 days of interest if you need to access your money before it matures.
- Members only. As with all credit unions, you must be an existing member to open this account. If you fall outside its regular field of membership, you join when you become an American Consumer Council member, which has a $15 one-time fee.
| 60-month term | 1.1% |
|---|
How do I compare the best 5-year CDs?
Make sure to keep the following features in mind when comparing CDs:
- Interest rate. Even a small difference in interest rates can make a substantial difference to your balance at the end of a five-year investment term, so be sure to compare all your options.
- Frequency of interest payments. Check to see when your account will pay interest — monthly, quarterly, half-yearly, annually or at maturity — and what effect this will have on your balance at the end of five years.
- Fees. There are many CDs that charge nothing in ongoing fees, so don’t agree to pay any unless the interest rate is high enough to make it worthwhile.
- Renewal bonuses. Some banks provide an interest rate increase if you decide to roll over your balance into another one when your CD matures.
- Linked account requirements. Some banks will also require you to open a linked account from which you can transfer funds to your CD. If this is the case, make sure you’re aware of any fees that apply to this account.
- Minimum balance requirements. Look for an account with a minimum deposit you can afford.
- What happens when the deposit matures. Some banks will automatically roll your funds over into a new CD when your account matures. Make sure you’re aware of what will happen to your funds at the end of the investment term so that you can take control of your finances.
How do 5-year certificates of deposit work?
Five-year certificates of deposit, or CDs, offer the security of a fixed interest rate and provide guaranteed returns on your investment. Also referred to as 60-month or long-term CDs, these accounts offer protection against any interest rate cuts that may occur.
Unlike a savings account, CDs are set up so that it is impossible to access the funds in your account without incurring high fees. This removes the temptation to dip into your savings on a whim, instead providing an incentive for you to invest your money for the full five-year term.
How does interest work on a 5-year CD?
With a certificate of deposit, you invest your money for a set period — in this case five years — and earn a fixed interest rate during that time. Interest can be paid monthly, quarterly, half-yearly, yearly or when the deposit matures. The interest rate is guaranteed not to change for the life of the deposit.
The interest rate on a CD remains the same until your account matures, which means you are protected against interest rate falls but you can’t take advantage of any rises that may occur. So if you think interest rates are unlikely to increase at any time in the next five years, investing in a five-year CD could be a good idea. Once the deposit matures at the end of the five-year period, you can either withdraw your funds or roll them over into a new CD.
What are the pros and cons of 5-year CDs?
The pros
- High, fixed-rate APYs. You’ll earn more interest in your money with a 5-year CD. Plus, your rate is locked in for the life of your CD, so it won’t change if your bank lowers its rates.
- Guaranteed returns. When you invest your money in a CD, you know exactly how much interest you’ll earn.
- Spending control. With a long-term CD, your money will be locked away to help you curb impulse purchasing.
The cons
- Rates won’t rise. If rates go up while your funds are locked away in a CD, you won’t be able to invest your funds at a higher rate until your deposit matures.
- Money locked away. Unless you have a no-penalty CD, it’s difficult to access your money while it’s invested in a CD. You’ll have to wait for five years before you’re able to withdraw. It can be challenging if an emergency pops up.
- Penalty fees. If you need access to your money earlier than expected, you’ll have to pay a penalty fee — and at some banks, you could end up walking away with less than you started with.
Why is it important to find the best rate?
Even a seemingly small difference in interest rates can make a large difference to what you earn — especially if you’re investing for five years. Take a look at the following fictional example:
Steve chooses a CD
Steve wants to invest $10,000 in a five-year CD. When he compares the accounts available from two banks, Steve discovers a slight difference in the interest rates — Bank A offers 2.75% APY while Bank B offers 3.25% APY. Both accounts pay interest monthly, so Steve compares the accounts to see just how much difference a higher rate will make to his end balance.
| Bank A | Bank B | |
|---|---|---|
| Interest rate | 2.75% APY | 3.25% APY |
| Investment term | 5 years | 5 years |
| Interest paid | Monthly | Monthly |
| Balance after 5 years | $11,472.21 | $11,761.90 |
As you can see, even though the interest rate from Bank B is only 0.50% higher, this works out to be a difference of $289.69 at the end of the investment term.
Bottom line
A five-year certificate of deposit provides a safe and reliable long-term investment option if you know you can wait to access your money for five years. If you need your investment to double as an emergency fund, a high-interest savings account might be a better fit.
Frequently asked questions
Can you add money to a CD?
No. You can only deposit money when you first open the account — you can’t add to it once the account is open.
How can I figure out how much I’ll earn?
You can use our CD calculator to see how much your savings will grow.
Should I get a CD or a savings account?
That depends on what you’re looking for. If you need access to your money in an emergency and/or you want to add to it gradually, a savings account is your best option. If you can keep your hands off your funds for a set period, a CD will earn you the highest interest rate.
If you can’t decide, you can always open one of each.
More guides on Finder
- Northpointe Bank Kid’s Savings review
Northpointe Bank’s Kids Savings account earns an unmatched interest rate on balances above $1,000.
- M&T Starter Savings account review
A kids savings account with an interest rate that compounds daily but has long hold times for customer service.
- Garden Savings FCU Kids Club Savings account review
A kids’ savings account with a generous interest rate that transitions to a lackluster regular savings account when your child turns 18.
- Cashero savings account review
A high-yield savings account that supports multiple currencies.
- Bank of Missouri Show Me Savers Club review
Bank of Missouri’s Show Me Savers earns 0.1% APY but can’t be opened online.
- Emprise Bank High Interest Checking account review
A checking account that earns up to 1.75% APY and up to $25 in ATM reimbursements.
- Navy Federal Visa Buxx review
Navy Federal’s Visa Buxx card has no fees, but you must qualify for membership with the credit union.
- The best free debit cards for kids for 2021
A must-have for parents looking to teach their little ones healthy money habits early on.
- Quontic Bank High Yield Savings account review
A savings account with a competitive interest rate and comes with an ATM card.
- Quontic Bank Money Market account review
Earn earns up to 0.40% APY depending on the balance you keep.