Compare the best CDs over one year long

Save for your long-term financial goals — but watch out for high fees.

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A long-term certificate of deposit, or CD, can help you earn a high interest rate on your savings. But you’ll face penalty fees if you need access to your money sooner than planned.

Compare some of the best long-term CDs

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 5-year APY
1.8%
1.85%
1.4%
1.3%
1.7%
1.5%
1%
1%
2%
2%
2.05%
2.05%
2.1%
1.95%
1.95%
1.95%
2%
2.05%
2.1%
2.1%
2.1%
2.1%
2.2%

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What is a long-term CD?

A long-term certificate of deposit takes at least a year to mature. Some long-term CDs can even take 10 years or more to reach maturity.

The interest rates on CDs will generally increase along with term lengths, so long-term CDs tend to have the highest interest rates. But they also have the highest potential penalty fees, making them a riskier option for investors who aren’t sure they can commit to the full term length.

What are the risks?

CDs up to $250,000 at FDIC-insured banks are backed by the US government, so your money is safe from thieves, hackers and banks that go out of business. But you still need to watch out for:

  • Automatic renewals. The bank may roll the account into a new CD if you don’t let them know that you will be making your withdrawal at maturity. Before choosing to roll over the account, make sure you shop around and compare other providers rates again, as these may now be more competitive than what you’re currently earning.
  • Early withdrawal fees. If you do make the withdrawal before maturity, not only will you be charged a penalty fee, but the interest calculated will be adjusted to meet the interest you would have received for a shorter CD. In some cases, you may end up with less money than you originally deposited.

Is there any way to avoid penalty fees?

Yes, you can invest in a low- or no-penalty CD. But these generally don’t have terms longer than a year, and they can have less competitive interest rates than traditional CDs.

High-interest CDs with terms of two years or longer almost always come with penalty fees. If you aren’t sure that you’ll be able to commit to locking your money away for a long-term, you may be better off opening a CD with a shorter term and rolling it over if you’re able to save for longer.

Benefits and drawbacks of long-term CDs

Pros

  • High interest rates. The longer the term, the better the interest rate will be.
  • No ongoing fees. Most long-term CDs don’t have monthly fees.
  • Incentive to save. Facing penalties is a good incentive for not dipping into your savings early.

Cons

  • Accessibility. If you need to access your savings early, you’ll be faced with steep penalty fees on most long-term CDs.
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Bottom line

A long-term CD can help you score a competitive interest rate, but it also leaves you on the hook for high fees if you need to withdraw early. Compare CD options to find one that fits your needs.

How did we choose the best long-term CDs?

Long-term certificates of deposit are a safe way to lock away your money for a few years, earning more interest than a standard savings account in the process. And while the interest rate certainly plays a large role in determining which account is best, it’s not always the most important factor. In order to highlight which five-year certificates of deposit are worth opening, we looked into account details using the following criteria: APY, deposit requirements, interest compounding, renewal bonus, early withdrawal penalties and fees.

Frequently asked questions

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