A certificate of deposit is a financial product that allows you to stash away some cash and earn a fixed rate of interest for a set period of time. In exchange for handing over your money for a specified and longer term, you usually earn a higher interest rate. For example, a five-year CD can earn a higher (and guaranteed) rate than a typical savings account while still offering safety.
The average five-year CD rate is 0.26 percent, but Bankrate’s team shopped around to find some of the best CD rates available nationwide. Compare these offers, then calculate how much interest you would earn when your CD matures.
Summary of best 5-year CD rates for December 2021
Note: Annual percentage yields (APYs) shown are as of Dec. 3, 2021. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
Bankrate’s guide to choosing the right CD rate
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Methodology for Bankrate’s Best CD Rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum deposit needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF).
When selecting the best CD for you, consider what you need the money for and when you’ll need it to help you avoid early withdrawal penalties.
Finding the best 5-year CD rates
Savers looking for the best CD rates probably want to venture online. Even if a bank is relatively small or not well-known, as long as it’s a member of the FDIC, you can rest easy knowing each depositor (that’s you) is protected up to at least $250,000 per insured bank. At a National Credit Union Administration (NCUA) institution, the standard insurance amount is up to $250,000 per share owner (depositor), per insured credit union, for each ownership category (account type).
One thing to look for, though: ease of use. Banks that make it difficult or time-consuming to deposit and withdraw funds may waste so much of your time that the benefit of a few extra basis points of interest on your savings is lost. (A basis point is 0.01 percent, so 1 percent has 100 basis points.)
Bankrate’s best 5-year CD rates December 2021
- Best Overall Rate: Pentagon Federal Credit Union – 1.25% APY, $1,000 minimum deposit
- High Rate: First Technology Federal Credit Union – 1.15% APY, $500 minimum deposit
- High Rate: Quontic Bank – 1.11% APY, $500 minimum deposit
- High Rate: Comenity Direct – 1.10% APY, $1,500 minimum deposit
- High Rate: SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
- High Rate: Capital One – 1.00% APY, $0 minimum deposit
- High Rate: Synchrony Bank – 1.00% APY, $0.01 minimum deposit
- High Rate: Bethpage Federal Credit Union – 1.00% APY, $50 minimum deposit
- High Rate: Marcus by Goldman Sachs – 1.00% APY, $500 minimum deposit
- High Rate: VyStar Credit Union – 1.00% APY, $500 minimum deposit
- High Rate: EmigrantDirect.com – 1.00% APY, 1,000 minimum deposit
- High Rate: MySavingsDirect – 1.00% APY, $1,000 minimum deposit
- High Rate: Discover Bank – 1.00% APY, $2,500 minimum deposit
- High Rate: Popular Direct – 1.00% APY, $10,000 minimum deposit
- High Rate: Suncoast Credit Union – 0.95% APY, $500 minimum deposit
- High Rate: Delta Community Credit Union – 0.95% APY, $1,000 minimum deposit
- High Rate: First Internet Bank of Indiana – 0.95% APY, $1,000 minimum deposit
- High Rate: Golden 1 Credit Union – 0.90% APY, $500 minimum deposit
- High Rate: Navy Federal Credit Union – 0.90% APY, $1,000 minimum deposit
- High Rate: TIAA Bank – 0.85% APY, $1,000 minimum deposit
Compare: Best 5-year CD rates for December 2021
Best Overall Rate: Pentagon Federal Credit Union – 1.25% APY, $1,000 minimum deposit
Pentagon Federal Credit Union was established in 1935. It has more than 2 million members and has its main office in McLean, Virginia.
PenFed has nine terms of CDs, ranging from six months to seven years.
High Rate: First Technology Federal Credit Union – 1.15% APY, $500 minimum deposit
First Technology Federal Credit Union (First Tech) was founded in 1952 by a group of Hewlett Packard and Tektronix employees. It has locations in California, Colorado, Georgia, Idaho, Massachusetts, Oregon, Texas and Washington state.
Membership is open to family members or household members of someone who is already a First Tech member. You can also join if you or a family member works either for a company on First Technology’s partner list or for the state of Oregon, if you work or live in Lane County, Oregon, or if you belong to the Computer History Museum or the Financial Fitness Association.
First Tech offers personal and business checking and savings accounts, individual retirement accounts (IRAs) and six terms of share certificates with minimum required deposits of $500.
High Rate: Quontic Bank – 1.11% APY, $500 minimum deposit
Quontic Bank was established in 2005 and has its headquarters in New York City. Quontic Bank calls itself the Adaptive Digital Bank.
You need only $500 to open a Quontic Bank CD. Quontic Bank offers five terms of CDs, ranging from one year to five years.
In addition to CDs, Quontic Bank has a money market account, a High Yield Savings account and two checking accounts.
High Rate: Comenity Direct – 1.10% APY, $1,500 minimum deposit
Comenity Direct launched in April 2019. It’s an online-only bank that offers high-yield savings products and five CD terms.
Comenity Direct is a brand of Comenity Capital Bank, which has existed for more than 30 years. Comenity is a bank behind many branded credit cards.
High Rate: SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
SchoolsFirst Federal Credit Union was formed by school employees in 1934, during the Great Depression, and has 50 branches.
SchoolsFirst serves the education community in California. Active and retired school employees and immediate family members of existing SchoolsFirst Federal Credit Union are eligible to join.
The credit union has low minimum balances and CD terms from as short as 30 days to as long as five years. But to earn the 1.01 percent APY, you’ll need to deposit at least $20,000. CDs at SchoolsFirst have four balance tiers: $500, $20,000, $50,000 or $100,000.
High Rate: Capital One – 1.00% APY, $0 minimum deposit
Capital One is an online bank that also has branches. It is based in McLean, Virginia.
Capital One offers nine competitive terms of regular CDs. Capital One’s CDs and 360 Performance Savings account don’t have minimum balance requirements.
High Rate: Synchrony Bank – 1.00% APY, $0.01 minimum deposit
Synchrony Bank has 12 CD terms to choose from, ranging from three months to five years, and requires no minimum balance on its CDs. The bank also offers a high-yield savings account and a money market account.
High Rate: Bethpage Federal Credit Union – 1.00% APY, $50 minimum deposit
Bethpage Federal Credit Union was founded in 1941 for people working at Grumman. It is located in Bethpage, New York.
Bethpage FCU has more than 400,000 members and offers nine terms of CDs. The three-month CD is the shortest term and the five-year CD is the longest term. Bethpage also offers a 39-month bump-up CD.
Besides CDs, Bethpage offers checking accounts, savings accounts, loans and other financial products.
High Rate: Marcus by Goldman Sachs – 1.00% APY, $500 minimum deposit
Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three no-penalty CD terms and a savings account. Marcus by Goldman Sachs offers competitive yields on its savings accounts and CDs. Savings products from Marcus are provided through Goldman Sachs Bank USA. Marcus began offering CDs under the Marcus by Goldman Sachs brand in November 2017.
Marcus also offers lending options with its debt consolidation loans, home improvement loans and personal loans.
High Rate: VyStar Credit Union – 1.00% APY, $500 minimum deposit
VyStar Credit Union was founded in 1952 as Jax Navy Federal Credit Union and was chartered at Naval Air Station Jacksonville in Florida.
Membership is open to anyone who works or lives in the 49 Florida or 10 Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs with terms ranging from three months to five years.
High Rate: EmigrantDirect.com – 1.00% APY, 1,000 minimum deposit
EmigrantDirect is a division of Emigrant Bank and offers CDs with terms ranging from six months to 10 years. All require a $1,000 minimum deposit.
On the savings side, EmigrantDirect offers its American Dream Savings Account, which has no fees or service charges.
High Rate: MySavingsDirect – 1.00% APY, $1,000 minimum deposit
MySavingsDirect is a division of Emigrant Bank. It has CDs with terms ranging from six months to 10 years. Each requires a $1,000 minimum deposit.
MySavingsDirect also offers the MySavings Account, which has no fees or service charges.
High Rate: Discover Bank – 1.00% APY, $2,500 minimum deposit
Discover Bank may be known for its credit cards, but it also offers a wide selection of banking products. It has been offering deposit products online since 2007.
Discover Bank offers CDs ranging in terms from three months to 10 years. It also offers a checking account, money market account and a savings account.
High Rate: Popular Direct – 1.00% APY, $10,000 minimum deposit
Popular Direct, an online community bank, is a subsidiary of Popular Inc., a financial services provider that is over 120 years old. Popular Direct was previously known as Banco Popular North America.
Popular Direct offers CDs in eight terms, from three months to five years. Interest compounds daily. If you withdraw your funds early on a five-year CD, the penalty is 730 days of simple interest.
Popular Direct also offers a savings account with a competitive rate.
High Rate: Suncoast Credit Union – 0.95% APY, $500 minimum deposit to open
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union now has 69 branches and has more than 900,000 members.
Suncoast Credit Union is the eighth-largest credit union in the U.S. based on membership. It is also the 10th-largest based on assets. People who attend school, live, work or worship in a county in Florida that Suncoast Credit Union serves are welcome to join.
High Rate: Delta Community Credit Union – 0.95% APY, $1,000 minimum deposit
Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Delta Community Credit Union has more than 400,000 members and 26 branches in metro Atlanta, as well as three branches outside of Georgia.
Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
High Rate: First Internet Bank of Indiana – 0.95% APY, $1,000 minimum deposit
First Internet Bank of Indiana was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. First Internet Bank of Indiana opened in 1999 and is available in all 50 states.
First Internet Bank’s products include CDs with eight term options, a money market savings account with a competitive yield, a savings account and two checking accounts.
High Rate: Golden 1 Credit Union – 0.90% APY, $500 minimum deposit
Golden 1 Credit Union has 1 million members and membership is open to all Californians. Golden 1 is based in Sacramento, California, and has 72 branches in California. It was established in 1933.
Non-Californians can join Golden 1 Credit Union if they are a registered domestic partner or family member of a member. They can also join if they’re a member of one of the select employee groups.
In addition to CDs, Golden 1 Credit Union also offers a money market account, checking and savings accounts. The credit union also has credit cards and loans.
High Rate: Navy Federal Credit Union – 0.90% APY, $1,000 minimum deposit
Navy Federal Credit Union has more than 9 million members and is the world’s largest credit union. It has a global network of 340 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.
Membership at Navy Federal Credit Union is open to all Department of Defense and Coast Guard Active Duty, civilian, contract personnel, veterans and their families.
In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.
High Rate: TIAA Bank – 0.85% APY, $1,000 minimum deposit
TIAA Bank is a division of TIAA FSB and has 10 financial centers, all in Florida.
TIAA offers CD terms ranging from three months to five years. It also offers a Bump Rate CD, which allows a one-time rate bump if rates go higher. For customers with large deposits who need expanded FDIC insurance coverage, TIAA Bank offers a service that allows it to insure more than FDIC limits by spreading money around to a network of banks.
5-year CD yields offered by popular banks – December 2021
- Ally Bank – 0.80% APY, $0 minimum deposit
- Barclays – 0.80% APY, $0 minimum deposit
- Live Oak Bank – 0.70% APY, $2,500 minimum deposit
Ally Bank – 0.80% APY, $0 minimum deposit
Ally Bank is an online-only bank that has been around for over 10 years. Its CDs have competitive APYs and few require a minimum deposit.
Ally Bank offers several different types of CDs in addition to its standard CDs, including a raise your rate CD and a no-penalty CD. It also offers savings and checking accounts.
Barclays – 0.80% APY, $0 minimum deposit
Barclays was founded in London more than 300 years ago. Barclays has no minimum balance requirements to open an online CD. It offers nine CD terms ranging from three months to 60 months. It also has a savings account.
Live Oak Bank – 0.70% APY, $2,500 minimum deposit
Live Oak Bank was founded in 2008 and is headquartered in Wilmington, North Carolina. An online bank, Live Oak offers seven CD terms.
Live Oak also offers a competitive yield on its savings account. Like most online banks, its online savings account doesn’t have a monthly service fee.
What to consider when choosing a CD
Consider these things to help you choose the right CD:
- Early withdrawal penalties: Know what penalties may be incurred should you withdraw your money before the CD matures.
- Minimum required deposit: Many CDs require a minimum amount of money to open.
- APY: Annual percentage yield is the yearly interest earned if you keep your money in the CD for the full term. Compare APYs, instead of interest rates, to make an apples-to-apples comparison of CDs.
- Term: The length of time required to earn interest on your money. Generally, it’s a good idea to choose a CD with a shorter term than when you expect to need your money. For example, if you need access to the funds in about two years, an 18-month CD may be a good choice.
- Insurance: Make sure the CD is offered by an FDIC-insured bank or at an NCUA credit union.
Pros and cons of 5-year CDs
Before getting a five-year CD, consider the pros and cons to see if it’s a right fit for you.
- Limited liquidity. CDs don’t provide immediate access to your funds (unlike savings accounts), which could benefit those who may be tempted to otherwise spend their money. A CD can help keep your savings intact. Just be sure you won’t need the money before the CD matures. It’s also important to understand the early withdrawal penalty that you’d incur if you needed to withdraw your funds sooner.
- Safety. CDs from FDIC-insured banks and credit unions are backed by the full faith and credit of the U.S. government up to $250,000.
- High returns. Banks generally provide a higher APY with a five-year CD than you could find in a traditional savings account or in a CD with a shorter maturity.
- Wide selection. You can choose from thousands of banks and credit unions to find a CD with the interest rate, maturity date (term) and minimum deposit amount that fit your needs.
- Fixed, predictable returns. Once you put your money in a CD, you’re guaranteed a set return at a specified date, which can help you plan your financial goals.
- Limited liquidity. The inability to instantly access funds is a drawback for those who may need their money before the CD’s term is up. You’ll typically pay a penalty for making early withdrawals. If you think it’s likely you’ll need this money in less than five years, consider a shorter-term CD or a savings account.
- Inflation risk. The money in your CD may lose its purchasing power over time if inflation overtakes your interest gains. (Note: Supply-chain issues and other economic factors recently have led to a surge in prices amid the ongoing COVID-19 pandemic.)
- Low relative returns. Other investment options may offer a higher rate of return. But these investments generally involve higher risk, including the chance of losing the principal. If you leave your money in the CD for the full term at an FDIC-insured bank and are within FDIC guidelines, your fixed-rate CD will earn that yield. The same is true for NCUSIF-backed credit unions.
- Reinvestment risk. When you park your money in a five-year CD, it’s a long wait before you can tap those funds. If interest rates rise in the meantime, you’ll miss out on investing in a higher-rate CD.
Alternatives to 5-year CDs
- CDs with a shorter maturity: Shorter-term CDs allow you to earn interest and potentially take advantage of rising rates once they mature. One-year and 18-month CDs allow access to your money sooner; the trade-off typically is lower APYs.
- Savings accounts: The key benefit of a savings account is liquidity, providing immediate access to your funds with no penalty. Saving accounts usually have lower APYs that vary.
- Money market accounts: These accounts allow you to access your money (with no penalties) while still providing a higher return than most savings accounts. Many institutions require a relatively high minimum opening balance, but that can also mean getting a higher interest rate. Some accounts may charge a fee if the account is closed within 90 to 180 days.
- Bonds: If you’re comfortable with more risk, you may consider investing in bonds. There are many types available, including municipal, corporate and agency bonds.
To recap our selections:
Bankrate’s best 5-year CD rates for December 2021
- Pentagon Federal Credit Union – 1.25% APY, $1,000 minimum deposit
- First Technology Federal Credit Union – 1.15% APY, $500 minimum deposit
- Quontic Bank – 1.11% APY, $500 minimum deposit
- Comenity Direct – 1.10% APY, $1,500 minimum deposit
- SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
- Capital One – 1.00% APY, $0 minimum deposit
- Synchrony Bank – 1.00% APY, $0.01 minimum deposit
- Bethpage Federal Credit Union – 1.00% APY, $50 minimum deposit
- Marcus by Goldman Sachs – 1.00% APY, $500 minimum deposit
- VyStar Credit Union – 1.00% APY, $500 minimum deposit
- EmigrantDirect.com – 1.00% APY, $1,000 minimum deposit
- MySavingsDirect – 1.00% APY, $1,000 minimum deposit
- Discover Bank – 1.00% APY, $2,500 minimum deposit
- Popular Direct – 1.00% APY, $10,000 minimum deposit
- Suncoast Credit Union – 0.95% APY, $500 minimum deposit
- Delta Community Credit Union – 0.95% APY, $1,000 minimum deposit
- First Internet Bank of Indiana – 0.95% APY, $1,000 minimum deposit
- Golden 1 Credit Union – 0.90% APY, $500 minimum deposit
- Navy Federal Credit Union – 0.90% APY, $1,000 minimum deposit
- TIAA Bank – 0.85% APY, $1,000 minimum deposit
5-year CD FAQs
Who should open a 5-year CD?
Long-term investment vehicles like five-year CDs generally offer a higher yield than those with shorter terms. But due to the flat yield curve, you won’t be earning much extra interest by opting for a long-term CD over a midterm CD.
A five-year CD is best for retirees and savers who don’t need the invested funds for at least half a decade. The decision to purchase a five-year CD depends on your time horizon and financial goals.
Why should I get a 5-year CD?
A five-year CD can earn some of the best CD yields available, as CDs with longer time horizons tend to earn higher rates. A five-year CD may be a good option for you if the APY is higher than can be found elsewhere and you’re able to leave your funds parked for the full term.
A five-year CD could also be a part of a CD ladder, which contains shorter-term CDs. For instance, a one-, two-, three-, four- and five-year CD could be a part of a ladder that staggers maturities and APYs, giving you the opportunity to earn a higher yield and still have access to some cash at set intervals.
Is a 5-year CD versatile?
With a five-year CD, savers earn a premium in addition to the normal rate on a conventional savings account. The catch, of course, is that you’ll pay a penalty if you withdraw your money early.
But assuming you can find a CD with a low penalty of just a few months’ interest, higher interest rates offered on five-year CDs may make them a good pick over shorter maturities, even if you think you might need to cash in the CD early.
Is a 5-year CD worth it?
There are two factors that determine whether a five-year CD makes sense for you: how soon you need your money and whether you’re earning a competitive APY.
The length of time is important because you want to make sure that you don’t incur an early withdrawal penalty. You also want to be aware of inflation and purchase a CD that is earning a yield that can keep up.
Can a 5-year CD lose value?
A five-year CD could lose value if you incur an early withdrawal penalty. That fee could eat into your principal amount. But if you keep the five-year CD for the full term, you will earn the stated interest — assuming the product you’re in is a fixed-rate CD.
Each depositor is insured to at least $250,000 per FDIC-insured bank. The standard share insurance amount is $250,000 per share owner, per insured credit union, for each account type at NCUA institutions.