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Compare the best 5-year CD rates

Meet your goals with an untouchable long-term savings investment.

Compare the 12 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.

Name Product 5-year APY Minimum deposit to open
Quontic Bank CD
Lock in a high rate. Minimum of $500 required to open. Open your account in 3 minutes or less
CIT Bank Term CDs
Choose from a range of terms with no maintenance fees and $1,000 minimum to open.
First National Bank of America Online CD
First Internet Bank CDs
Synchrony Bank CDs

Compare up to 4 providers

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 13 with national availability and low minimum deposit requirements.

What’s changed in 2021?
Due to these drops, our best list has changed and we added removed Axos Bank’s five year CD and Barclays’s 5-year CDs and added Quontic Bank. We added Bread Savings to our best list due to its high APY and daily customer service hours.

A closer look at the best 5-year CDs

Aside from interest rate, consider a few other features, benefits and drawbacks of these 5-year CDs.

Quontic Bank CD

Finder rating 5 / 5 ★★★★★

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on Quontic Bank's secure site
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CIT Bank Term CDs

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on CIT Bank's secure site
Read review

Discover CDs

Finder rating 3.8 / 5 ★★★★★

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on Discover's secure site
Read review

First National Bank of America Online CD

Finder rating 4.5 / 5 ★★★★★

First Internet Bank CDs

Finder rating 4.4 / 5 ★★★★★

Synchrony Bank CDs

Finder rating 3.8 / 5 ★★★★★

Ally High Yield CDs

Finder rating 3.3 / 5 ★★★★★

Capital One 360 CD

Finder rating 3.7 / 5 ★★★★★

Prime Alliance Bank CD

Finder rating 4.1 / 5 ★★★★★

Alliant Credit Union CD

Finder rating 4 / 5 ★★★★★

Marcus by Goldman Sachs High-yield CDs

Finder rating 3.6 / 5 ★★★★★

Vio Bank High Yield Online CDs

Finder rating 3.4 / 5 ★★★★★

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

Finder rating 4 / 5 ★★★★★

Hiway Federal Credit Union CD

Finder rating 4.3 / 5 ★★★★★

State Department Federal Credit Union CD

Finder rating 2.5 / 5 ★★★★★

Bread Savings CDs

Finder rating 3.8 / 5 ★★★★★

Read up on how to compare long-term vs. short-term CD rates

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 ABank B
      Interest rate2.75% APY3.25% APY
      Investment term5 years5 years
      Interest paidMonthlyMonthly
      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

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