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Best 5-year CD rates – August 2022

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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 0.67 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.

What is a 5-year CD?

Think of a CD as a higher-paying savings account that’s stashed in a safe with a time lock. But unlike a savings account with a variable annual percentage yield (APY), the yield on a CD is fixed and won’t change during the term. At the end of the term, one month, you can renew the CD or shop around for another one, potentially with a higher yield, if the interest rate environment has improved. After a CD’s maturity date, it likely will renew automatically after a grace period, typically within seven to 10 days.

Bankrate’s picks for the top 5-year CD rates

Note: Annual percentage yields (APYs) shown are as of July 28, 2022. 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.

A closer look at the top 5-year CD rates

Bread Savings – 3.35% APY, $1,500 minimum deposit

Bread Financial is an online-only bank that offers high-yield savings products and five CD terms.

Bread Savings is a product of Comenity Capital Bank, which has existed for more than 30 years. Comenity is a bank behind many branded credit cards.

Synchrony Bank – 3.25% APY, $0 minimum deposit

Synchrony Bank offers competitive yields across 14 CD terms. Synchrony promises that CDs funded within 15 days of opening will pay a higher yield if rates increase during that period.

The bank also offers a money market account and a savings account. Both offer a competitive APY and have no minimum balance requirement.

First Internet Bank of Indiana – 3.25% APY, $1,000 minimum deposit

First Internet Bank of Indiana opened in 1999 and was the first FDIC-insured financial institution to operate entirely online, according to the bank’s website. Its products are 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.

Popular Direct, an online  bank, is a subsidiary of Popular Inc., a more than 120-year-old financial-services company. Popular Direct was previously known as Banco Popular North America.

Popular Direct offers CDs in eight terms, from three months to five years, and are geared for serious savers, with a $10,000 minimum deposit to open. Interest compounds daily. Popular Direct CDs doesn’t offer specialty CDs, such as bump-up or no-penalty CDs.

Popular Direct also offers a savings account with a competitive rate.

Barclays – 3.20% 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 five years. A savings account is also available.

Capital One – 3.20% 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.

Marcus by Goldman Sachs – 3.20% APY, $500 minimum deposit

Marcus by Goldman Sachs is the online consumer-banking unit of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three no-penalty CD terms and a savings account, all with competitive yields. Marcus began offering CDs in 2017.

Marcus also offers debt consolidation, home improvement and personal loans.

Discover Bank – 3.20% APY, $2,500 minimum deposit

Discover Bank may be known for its credit cards, but it also offers a wide selection of banking products, including checking, money market and savings accounts. Discover Bank CDs range in terms from three months to 10 years.

The savings account offers a competitive APY and has no minimum balance requirement.

Alliant Credit Union – 3.05% APY, $1,000 minimum deposit

Alliant Credit Union was founded in 1935 as United Airlines Employees’ Credit Union. Today, it has about 600,000 members nationwide.

Alliant offers competitive APYs with low minimum balance requirements for CDs. Alliant also has a variety of individual retirement account (IRA) CDs.

Pentagon Federal Credit Union – 3.00% 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 offers nine terms of CDs, ranging from six months to seven years.

Citizens Access – 3.00% APY, $5,000 minimum deposit

Citizens Access made its debut in 2018. It offers five terms of CDs and a savings account. Its five-year CD is its longest CD term.

You’ll need at least $5,000 to open a CD or a savings account at Citizens Access.

LendingClub Bank – 2.95% APY, $10,000 minimum deposit

LendingClub Bank is a digital financial company that offers personal and business banking products. It acquired Radius Bank in early 2021.

In addition to this CD, LendingClub Bank also offers a high-yield savings account and both a personal and business checking account.

Ally Bank – 2.90% APY, $0 minimum deposit

Ally Bank is an online-only bank that has been around since 2009. It offers several types of CDs in addition to its standard CDs, including a raise your rate CD and a no-penalty CD, all of which offer competitive yields.

Ally guarantees to raise the yield on your CD should rates rise within 10 days of the account open date, provided it has been funded.

American Express National Bank – 2.90% APY, $0 minimum deposit

American Express is best known for its credit cards, but the FDIC-insured bank also offers deposit products like savings accounts and CDs. Its CD rates are often competitive. AmEx CDs require no minimum balance and terms range from six months to five years.

American Express offers a high-yield savings account with a yield that’s well above the national average, and it doesn’t require a minimum deposit or charge a monthly fee.

Live Oak Bank – 2.70% 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.

How to find 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.)

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.

5-year CD FAQs

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.

Banks we monitor

These financial institutions are featured in our CD rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, BB&T, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E-Trade Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, Popular Direct, Purepoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.

Written by
Karen Bennett
Consumer banking reporter
Karen Bennett is a consumer banking reporter at Bankrate. She uses her finance writing background to help readers learn more about savings and checking accounts, CDs, and other financial matters.
Edited by
Senior wealth editor
Reviewed by
Head of investor relations, Gateway Partners