Business Insider's personal finance team checks the best nationwide financial institutions daily to help you find the right 5-year CD for you. The best 5-year CD rates are far higher than the national average 5-year CD rate, which is 1.34% annual percentage yield. Generally, online banks and credit unions offer the best CD rates.
The best nationwide 5-year CD rate you can get right now is 4.28% APY from Lafayette Federal Credit Union.
The top 5-year CDs pay high interest rates. They also might have low minimum opening deposits, low early withdrawal penalties, and strong mobile banking apps to put them over the top.
A 5-year CD may be ideal if you don't need access to some of your savings for a few years. If you're also interested in other CD term lengths, check out our overall best CD rates guide.
We check rates daily to find the best rates for 5-year terms. Here are our top picks for 5-year CDs.
Best 5-Year CD Rates
- Lafayette Federal Credit Union 5 Year Certificate: 4.28% APY
- America First Credit Union 5 Year Certificate: 4.20% APY
- Credit Human 5 Year Share Certificate: 4.20% APY
- Popular Direct 5 Year CD: 4.15% APY
- Synchrony 5 Year CD: 4.15% APY
- TotalBank 5 Year CD: 4.00% APY
- Securityplus Federal Credit Union 5 Year Share Certificate: 4.00% APY
- USALLIANCE Financial 5 Year Certificate: 4.00% APY
Compare the Best 5-Year CDs
The best 5-year CDs pay well above average CD rates for a 5-year term. We also highlight whether a CD stands out for a low minimum opening deposit and lenient early withdrawal penalties. If the bank or credit union also has other competitive CD terms, we mention them, too.
Our top picks for CDs are protected by FDIC or NCUA insurance. Money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
5-Year CD Reviews
Lafayette Federal Credit Union 5 Year Certificate
Lafayette Federal Credit Union pays a high interest rate on a 5-year term. It also offers competitive rates for its other certificate terms, including one of the best 2-year CD rates.
You only need $500 to open an account. Usually, you'll need at least $1,000 to open a CD at a financial institution.
To open a certificate you must meet membership requirements. You can join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.
APY for 5-year CD: 4.28% APY
5-year CD early withdrawal penalty: 600 days of interest
America First Credit Union 5 Year Certificate
America First Credit Union's 5-year CD offers a strong rate and a low minimum opening deposit of $500. It also offers several different CD options, such as flexible and bump-rate CDs.
Since America First is a credit union, not everyone qualifies to become a member. Membership is limited to people who work for specific companies or fields, people who have immediate family who are members, and people who live, work, worship, volunteer, or study in select parts of Oregon, Idaho, Nevada, Arizona, New Mexico, and Utah.
APY for a 5-year CD: 4.20% APY
5-year CD early withdrawal penalty: 180 days of interest
America First Credit Union Review
Credit Human 5 Year Share Certificate
You may like a Credit Human 5 Year Share Certificate if you'd prefer a credit union over a bank. Credit Human has high interest rates on several of its long-term CDs, including its 5-year CD. You'll need a minimum of $500 to open a CD, which is less than what many other institutions require.
To open a Credit Human Share Certificate, you'll have to qualify for membership. You may join from anywhere in the U.S. if you become a member of the American Consumer Council. Credit Human also has other ways to become a member: You'll be eligible to join if you live in a service area in San Antonio, Texas, or New Orleans, Louisiana, or if you work for a partner employer or organization.
APY for a 5-year CD: 4.20% APY
5-year CD early withdrawal penalty: 730 days' dividends
Popular Direct 5 Year CD
Popular Direct CDs pay a competitive rate and compound interest daily.
You'll need at least $10,000 to open a Popular Direct CD. The bank also charges high early withdrawal penalties.
APY for 5-year CD: 4.15% APY
5-year CD early withdrawal penalty: 730 days of simple interest
Synchrony 5 Year CD
Synchrony offers a strong rate for its 5-year CD along with several other financial institutions. Its minimum opening deposit is $0, which is very rare for a CD. If you're hoping to put a small amount of money in a CD, this might be a good choice for you.
Synchrony's early withdrawal penalties can be high, depending on the term. If you think there's a chance you'll need to withdraw your money before the end of the term length, you might want to go with another bank.
APY for 5-year CD: 4.15% APY
5-year CD early withdrawal penalty: 1 year of simple interest
TotalBank 5 Year CD
TotalBank offers strong CD rates overall, including for its 5-year CDs. If you're hoping to build a CD ladder out of CDs from the same financial institution, this bank might be a good choice.
That being said, you'll need to be prepared to deposit a lot of money to do so. TotalBank CDs require a high minimum opening deposit of $25,000.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 180 days of interest
Securityplus Federal Credit Union 5 Year Share Certificate
Securityplus Federal Credit Union has a good rate on its 1-year CD and 5-year CD. If you're hoping to open multiple CDs with the same financial institution, Securityplus might be a good choice for you. Securityplus is also a Black-owned credit union. If you want to support a minority depository institution, Securityplus might be a good choice for you.
As a credit union, Securityplus has membership eligibility requirements you have to meet to open an account. The easiest way to qualify to join Securityplus is to join the American Consumer Council. You can also meet the eligibility requirements by working for certain groups, living, working worshipping, or attending school in the City of Baltimore, or being a family member of another Securityplus member.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 90 days of interest
USALLIANCE Financial 5 Year Certificate
USALLIANCE Financial offers a strong rate on its 5-year CD with a low minimum opening deposit. It also offers good no-penalty CD.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY for a 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 360 days of interest
Bank Trustworthiness and BBB Ratings
We've compared each company's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
| Institution | BBB rating |
| Lafayette Federal Credit Union | A+ |
| America First Credit Union | A+ |
| Credit Human Federal Credit Union | A- |
| Popular Direct | A+ (rating of its parent bank, Popular) |
| Synchrony | NR |
| TotalBank | A- |
| Securityplus Federal Credit Union | A+ |
| USALLIANCE Financial | D- |
Credit Human has an A- rating from the BBB because of a few unresolved complaints against the business.
Synchrony has an NR rating from the BBB because the business is currently responding to previously closed complaints.
TotalBank has an A- rating from the BBB because it hasn't responded to a few complaints filed against the business.
USALLIANCE Financial has a D- rating from the BBB because it has not responded to several complaints filed against the business.
Popular has been involved in one recent controversy. In 2023, the Federal Reserve Board fined Popular Direct's parent bank, Popular Bank, $2.3 million. The Federal Reserve Board said the fine was because Popular Bank processed six Paycheck Protection Program loans that had significant signs of potential fraud.
Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have.
Types of 5-Year CDs
Traditional 5-Year CDs
Traditional 5-year CDs are the most common type of CDs. All the CDs we've chosen as our top picks are traditional CDs. They generally offer higher interest rates than specialty CDs, but they're more limited. You can't add money into traditional CDs after its opened, and you can't withdraw money without having to pay early withdrawal penalties. You also can't change your interest rate after the CD opens; if your bank raises its CD rates, you'll be locked into the lower rate.
5-Year No-Penalty CDs
With traditional CDs, you'll face steep CD early withdrawal penalties if you withdraw your money before the CD's term length is up. Early withdrawal penalties are especially steep for 5-year CDs, and their longer term lengths mean there's a greater chance you'll need to withdraw your money before it matures.
With no-penalty CDs, you won't have to pay early withdrawal penalties if you withdraw funds before the end of the term length. That being said, no-penalty CDs generally offer lower interest rates than their traditional peers, and the majority of no-penalty CDs are short-term. You might not be able to find a 5-year no-penalty CD with an interest rate that fits your needs.
N0-penalty CDs sometimes put limits on how many times you can withdraw money — and how much money you can withdraw — before the end of the term. Make sure you're OK with your no-penalty CD's withdrawal terms before you commit.
5-Year Bump-Up CDs
Bump-up CDs, also known as bump-rate CDs, are CDs that let you raise your interest rate a certain number of times if your bank raises its rates during the term length. If you think rates are likely to go up during your CD term, a bump-up CD might be a good choice. But keep in mind that bump-up CDs generally offer lower interest rates than traditional CDs with the same term length. Since it's likely the Fed will lower its rates again soon, the market currently isn't great for bump-up CDs. That being said, a 5-year CD has a long enough term length that rates might still rise before it matures.
Bump-up CDs differ in how many times you can raise your rate before the CD matures. If you're interested in a bump-up CD, check to see how many times your CD lets you up your rate so you can make informed decisions on when to raise your CD rate.
What Influences the Best 5-Year CD Rates
Federal Reserve Policies
The Federal Open Market Committee, a branch of the Federal Reserve, is in charge of managing the federal funds rate. During at least eight meetings held per year, the FOMC assesses economic conditions and decides if the federal funds rate should be changed.
National CD rate trends are influenced by changes in the federal funds rate. CD rates often increase when the federal funds rate goes up, and CD rates will often decline when the federal funds rate drops.
Economic Conditions and Long-Term Outlook
The CD rate forecast for 2025 is that rates on all types of savings accounts are expected to decline. The Federal Reserve cuts interest rates for the first time in four years at the September Fed meeting. More rate cuts are anticipated toward the end of the year. However, it'll take time for CD rates to significantly decline.
Competition and Individual Offers
Banks occasionally have promotions for specific terms, including 5-year CDs. If you're looking at a promotional CD, review the requirements needed to obtain the highest rate.
Sometimes, banks will only promotional CDs for new customers or customers who have specific bank accounts. You also might be required to deposit "new money." Each bank will define what new money means in the listed requirements, but generally, it refers to money that hasn't been deposited at their financial institution.
Should You Lock In a 5-Year CD?
While there are other terms that pay higher CD rates, the best 5-year CDs still offer good rates overall. Experts recommend keeping money in a CD term that fits your savings goals, so if you need to keep your money in a relatively low-risk place for around 5 years, these CDs are a good match.
A 5-year CD is also a great option if you're building a CD ladder. It can help balance out short-term CDs, since national CD rates trends are likely to shift.
When you're choosing where to open a 5-year CD, make sure to compare various financial institutions in order to seek the best CD rates. You should also think about your overall banking experience before settling on your top choice.
Even if you are currently unbanked, know that you still have options that suit your needs. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.
CD Laddering with 5-Year CDs
You can lock in a great rate for a long time with a 5-year CD, but their longer term lengths mean you won't be able to access your money for a significant amount of time. If you want to mitigate the risk that you'll have to withdraw early and incur early withdrawal penalties, you can choose to open a CD ladder instead of one 5-year CD.
CD ladders require opening multiple CDs of different term lengths with your funds instead of opening just one CD. If you were originally thinking of opening a 5-year CD with $90,000, you could instead open a 3-year CD, 4-year CD, and 5-year CD, each with $30,000. This way, you're able to access some of your money much sooner, but you're still able to lock in a great rate for a long time.
You don't need to open every CD in a CD ladder at the same bank or credit union, so you can still shop around for the best interest rates no matter where they are. That being said, opening multiple CDs at the same financial institution might be easier for you to keep track of.
Why You Should Trust Us: Expert Advice on Choosing the Best 5-Year CD
To learn more about what makes a good CD and how to choose the best fit, Business Insider consulted four experts:
- Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
- Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
- Sophia Acevedo, banking editor, Business Insider
- Mykail James, MBA, CFEI, BoujieBudgets.com
Here's what they had to say about CDs.
How do you decide how long your CD term should be?
CDs come in different terms that range from months to years, and a 5-year CD is typically one of the longest terms available. When choosing the right term for you, start with how you're going to use the money, and when. If you're buying a house in five years and know you won't need the money until then, a 5-year CD might work for your needs — however, if you're buying that house in two years, you'll need to choose a shorter term.
Once you know when you'll need the money, you can take a look at available rates. Maybe you have some flexibility around when you'll need the money, and find it worth leaving in the bank an extra six months or year to get a higher rate.
Should you put money in a high-yield savings account, money market account, or CD?
You're allowed to have multiple types of accounts, and it's OK to put money in different places for different purposes. Perhaps you want a high interest rate on money you can access at any time for an emergency, so you put that emergency fund in a high-yield savings account. Then, you want a savings account from which you can make regular withdrawals, so you use a money market account. Finally, you want to keep a nest egg out of sight and out of mind while earning a strong interest rate, so you use a CD.
Choosing which type of account to use comes down to how you plan to use that money, and when.
Our Methodology: How We Chose the Best 5-Year CDs
Business Insider's personal finance team researched over 60 banks and credit unions to find the best 5-year CD rates.
We are editorially independent, meaning that the business team does not dictate what we cover or write about. To understand how we cover and rate products, you can learn more about our editorial standards.
For all of our banking products, we follow our bank rating methodology when assigning a score. For CDs, we start by rating a CD and the bank's minimum opening deposit, customer support, mobile app ratings, ethics, security, interest rate, early withdrawal penalties, miscellaneous features, and available terms from zero to five.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
CD ratings can be anywhere from one star to five stars. A one-star rating is the lowest score and lets you know the product needs significant improvement. A five-star rating is the highest rating possible. It shows that a product is a top-tier option for most people.
FAQs
What is the highest interest rate on a 5-year CD?
The highest interest rate on a 5-year CD is 4.28% APY from Lafayette Federal Credit Union.
Do the best 5-year CD rates stay the best over the whole term?
The most competitive term available at a bank can vary. Banks set their own criteria for changing CD rates. However, many are also influenced by the Federal Reserve's actions, economic conditions, and competition.
Why are 5-year CD rates generally the highest?
Actually, short-term CD rates are higher than long-term CD rates because there's economic uncertainty. The Fed Reserve is likely to make rate cuts in the future. It already cut rates three times in 2024.
Are there ways to minimize risk with a 5-year CD?
Many experts recommend building a CD ladder to minimize the risk of making an early withdrawal. With this CD strategy, you open multiple CDs with different term lengths. This way, you can take advantage of higher rates also paying 5% APY.
Are 5-year CDs too risky?
A 5-year CD is a type of savings account with a fixed interest rate. It's low-risk because insured deposits are protected by FDIC insurance (up to $250,000 per depositor, per ownership account category).
