A certificate of deposit, or CD, is a financial product that allows you to stash away some cash and earn a fixed rate of interest on that cash for a set period of time. In exchange for handing over your money for a specified and longer term, banks are usually willing to offer you a higher interest rate. For example, a 5-year CD can earn you a higher (and guaranteed) rate than a typical savings account while still offering safety.
Although average 5-year CD rates are hovering around 0.31 percent, we’ve shopped around to find some of the top nationally available CDs for you. Compare these offers, then calculate how much interest you would earn when your CD matures.
Summary of best 5-year CD rates for September 2021
Note: The APYs (Annual Percentage Yields) shown are as of Aug. 30, 2021. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated. The rates for some products may vary by region.
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) credit union, 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 September 2021
- Best Overall Rate: Delta Community Credit Union – 1.15% APY, $1,000 minimum deposit
- High Rate: Quontic Bank – 1.11% APY, $500 minimum deposit
- High Rate: Pentagon Federal Credit Union – 1.10% APY, $1,000 minimum deposit
- High Rate: SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
- High Rate: VyStar Credit Union – 1.00% APY, $500 minimum deposit
- High Rate: Suncoast Credit Union – 0.95% APY, $500 minimum deposit
- High Rate: First Internet Bank of Indiana – 0.95% APY, $1,000 minimum deposit
- High Rate: Security Service Federal Credit Union – 0.95% APY, $25,000 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: Comenity Direct – 0.90% APY, $1,500 minimum deposit
- High Rate: Synchrony Bank – 0.85% APY, $0.01 minimum deposit
- High Rate: TIAA Bank – 0.85% APY, $1,000 minimum deposit
- High Rate: Popular Direct – 0.85% APY, $10,000 minimum deposit
Compare: Best 5-year CD rates for September 2021
Best Overall Rate: Delta Community Credit Union – 1.15% 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: 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: Pentagon Federal Credit Union – 1.10% APY, $1,000 minimum deposit
Pentagon Federal Credit Union (PenFed) 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. They range from a six-month CD to a seven-year CD.
High Rate: SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. The credit union, created by school employees, has 50 branches.
SchoolsFirst serves the education community in California. Certain school employees, certain 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 a sizable $20,000 deposit. CDs at SchoolsFirst have four balance tiers: $500, $20,000, $50,000 or $100,000.
High Rate: VyStar Credit Union – 1.00% APY, $500 minimum deposit
VyStar Credit Union was founded in 1952. It was originally called Jax Navy Federal Credit Union and it was chartered at Naval Air Station in Jacksonville, Florida.
Membership at VyStar Credit Union is open to anyone who works or lives in the 49 Florida counties or the four Georgia counties listed on its website.
VyStar Credit Union offers 10 CDs with terms ranging from three months to five years.
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: 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: Security Service Federal Credit Union – 0.95% APY, $25,000 minimum deposit for APY
Security Service Federal Credit Union was founded in 1956 to serve the needs of members and families of the U.S. Air Force Security Service Command.
People who live, work, worship, attend school, volunteer or have a business in Colorado, Texas or Utah are eligible to join, as are members of select military branches or units and Department of Defense employees at specific military bases within the credit union’s service area. Members’ families and household members also can join.
Based in San Antonio, it offers a full slate of consumer banking products, including CDs in seven terms ranging from three months to seven years.
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: Comenity Direct – 0.90% 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: Synchrony Bank – 0.85% APY, $0.01 minimum deposit
Synchrony Bank has many CD terms to choose from. Synchrony Bank’s 12 terms of CDs range from a three-month CD to a five-year CD. The CDs don’t require a minimum balance. The bank also offers a high-yield savings account and a money market account.
High Rate: TIAA Bank – 0.85% APY, $1,000 minimum deposit
TIAA Bank is a division of TIAA, FSB. TIAA Bank has 10 financial centers, all located 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. TIAA Bank has a service called CDARS (Certificate of Deposit Account Registry Service) for customers with high deposits who need expanded FDIC insurance coverage.
High Rate: Popular Direct – 0.85% 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 5-year CD, it will cost you 730 days of simple interest.
Popular Direct also offers a savings account with a competitive rate.
5-year CD yields offered by popular banks – September 2021
- Ally Bank – 0.80% APY, $0 minimum deposit
- Capital One – 0.80% APY, $0 minimum deposit
- Marcus by Goldman Sachs – 0.80% APY, $500 minimum deposit
- Live Oak Bank – 0.70% APY, $2,500 minimum deposit
- Discover Bank – 0.60% 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.
The bank offers several different types of CDs. In addition to its standard CDs, it has a raise your rate CD and a no-penalty CD.
Ally Bank also offers a savings account and a checking account.
Capital One – 0.80% APY, $0 minimum deposit
Capital One is an online bank that also has a brick-and-mortar presence. 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.
Marcus by Goldman Sachs – 0.80% 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.
Live Oak Bank – 0.70% APY, $2,500 minimum deposit
Live Oak Bank was founded in 2008 and has its headquarters in Wilmington, North Carolina. An online bank, Live Oak offers seven terms of CDs.
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.
Discover Bank – 0.60% APY, $2,500 minimum deposit
Discover Bank may be known for 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 with terms ranging from three months to 10 years.
Besides CDs, Discover offers a savings account, a checking account and a money market account.
What to consider when choosing a CD
Consider the following things to help you choose the right CD for you:
- Early withdrawal penalties: Know what the penalty will be if you were to withdraw your money before the CD matures.
- Minimum required deposit: Many CDs require a certain amount of money to open the account.
- Annual percentage yield (APY): This will tell you the amount of annual interest you’re going to earn if you keep your money in the CD for the full term. Compare APYs, instead of rates, to make an apples-to-apples comparison of CDs.
- Term: How long your money is locked up for. Choose a CD with a shorter term than when you expect to need access to the money you will deposit in the CD.
- 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 5-year CD, consider the pros and cons to see if it’s the right fit for you.
- Limited liquidity. This can be a benefit to those with extra cash who might be tempted to spend that savings. Using a CD can help keep your savings intact. Just make sure the deposit amount is money that you won’t need for at least five years (or the term you choose for your CD). It’s also important to understand the early withdrawal penalty that you’d incur if you did need to withdraw that money 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 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. Although a pro for some savers, this is a drawback for those who need to access their funds 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, look at 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 that inflation has been low over the last 10-plus years, but has been rising recently as businesses reopen post COVID-19 and start raising prices.)
- Low relative returns. There are other investment options to consider which could offer a higher return on your investment. But these investments generally involve higher risk (including the chance of losing the principal). As long as you leave your money in the CD for the full term (in this case, five years) — and you’re within FDIC guidelines if it’s at an FDIC-insured bank — then a CD with a fixed APY will earn that yield.
- Reinvestment risk. When you park your money in a 5-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: These allow you to earn interest and potentially take advantage of rising rates once the CDs mature. Check out 1-year and 18-month CDs if you don’t want to lock away your money for five years.
- Savings accounts: These offer total liquidity, so you can get your hands on your money as soon as you need it and pay no penalties. These usually have lower APYs and these APYs are usually variable.
- Money market accounts: These accounts allow you to access your money (with no penalties) while still providing a higher return than most savings accounts. To open a money market account, many institutions require a relatively high minimum balance, but that can also mean getting a higher interest rate. Some of these accounts may have an early closeout fee if you close the account within 90 to 180 days.
- Bonds: If you’re interested in taking a bigger 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 September 2021
- Delta Community Credit Union – 1.15% APY, $1,000 minimum deposit
- Quontic Bank – 1.11% APY, $500 minimum deposit
- Pentagon Federal Credit Union – 1.10% APY, $1,000 minimum deposit
- SchoolsFirst Federal Credit Union – 1.01% APY, $20,000 minimum deposit for APY
- VyStar Credit Union – 1.00% APY, $500 minimum deposit
- Suncoast Credit Union – 0.95% APY, $500 minimum deposit
- First Internet Bank of Indiana – 0.95% APY, $1,000 minimum deposit
- Security Service Federal Credit Union – 0.95% APY, $25,000 minimum deposit
- Golden 1 Credit Union – 0.90% APY, $500 minimum deposit
- Navy Federal Credit Union – 0.90% APY, $1,000 minimum deposit
- Comenity Direct – 0.90% APY, $1,500 minimum deposit
- Synchrony Bank – 0.85% APY, $0.01 minimum deposit
- TIAA Bank – 0.85% APY, $1,000 minimum deposit
- Popular Direct – 0.85% APY, $10,000 minimum deposit
5-year CD FAQs
Who should open a 5-year CD?
Long-term investment vehicles like 5-year CDs technically offer a higher yield than their shorter-term counterparts. But due to the flat yield curve, you won’t be earning much extra interest by opting for a long-term CD over a mid-term CD.
A 5-year CD is best for retirees and savers who don’t need access to a portion of their funds for half a decade. It all depends on your time horizon and financial goals. A 5-year CD could also be a good addition to a CD ladder for savers who want to take advantage of the opportunity to earn a higher yield but still want liquidity and access to cash at set intervals.
Why should I get a 5-year CD?
You should get a 5-year CD if you want some of the best CD yields available. Usually, the longer the time horizon, the higher the CD’s APY. If you’re satisfied with the APY on the 5-year CD and like to know that you have a certain amount of money at a fixed rate for the next five years, a 5-year CD may be a good option for you.
A 5-year CD could also be a part of a CD ladder, which contains shorter-term CDs. For instance, a 1-year, 2-year, 3-year, 4-year and a 5-year CD could be a part of a ladder that staggers maturities and APYs.
Is a 5-year CD versatile?
With a 5-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 try to withdraw your money.
But assuming you can find a CD with a low penalty of just a few months’ interest, higher interest rates offered on 5-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 5-year CD makes sense for you: your time horizon for this money and whether you’re getting a competitive annual percentage yield (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 try to have a CD that is earning a yield that can keep up.
Can a 5-year CD lose value?
A 5-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 5-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 by the FDIC. The standard share insurance amount is $250,000 per share owner, per insured credit union, for each ownership category (account type) at NCUA institutions.