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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 1.06 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, 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
- Bread Savings – 4.75% APY, $1,500 minimum deposit
- Sallie Mae Bank – 4.55% APY, $2,500 minimum deposit
- BMO Harris – 4.50% APY, $1,000 minimum deposit
- Popular Direct – 4.50% APY, $10,000 minimum deposit
- Quontic Bank – 4.45% APY, $500 minimum deposit
- First Internet Bank of Indiana: 4.39% APY, $1,000 minimum deposit
- Synchrony Bank – 4.30% APY, $0 minimum deposit
- American Express Bank: 4.25% APY; $0 minimum deposit
- Barclays – 4.25% APY, $0 minimum deposit
- Capital One – 4.25% APY, $0 minimum deposit
- Alliant Credit Union – 4.25% APY, $1,000 minimum deposit
- Discover Bank: 4.25% APY; $2,500 minimum deposit
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 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: 4.75% 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.
Sallie Mae Bank: 4.55% APY, $2,500 minimum deposit
Sallie Mae Bank offers 11 terms of CDs, savings accounts, a money market account, credit cards and private student loans.
Sallie Mae Bank offers a competitive yield on all deposit products.
Sallie Mae Bank was established in 2005 and has its headquarters in Salt Lake City, Utah. In 2014, Sallie Mae became a standalone consumer banking business.
BMO Harris: 4.50%* APY, $1,000 minimum deposit
BMO Harris is a regional bank that also offers online accounts. It’s based in Chicago and has more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
BMO Harris offers CDs with terms ranging from one month to five years, each requiring a minimum $1,000 opening deposit.
*APY is unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.
Popular Direct: 4.50% APY, $10,000 minimum deposit
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, that are geared toward serious savers, with a $10,000 minimum deposit to open. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs.
Popular Direct also offers a savings account with a competitive rate.
Quontic Bank: 4.45% APY, $500 minimum deposit
Quontic Bank is an online bank that offers CDs as well as savings, money market and checking accounts.
A $500 minimum deposit is required to open a Quontic Bank CD and five terms are offered, ranging from six months to five years.
First Internet Bank of Indiana: 4.39% APY, $1,000 minimum deposit
First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states.
First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
Synchrony Bank: 4.30% 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.
American Express Bank: 4.25% APY, $0 minimum deposit
While American Express is perhaps most known for its credit cards, the company also provides savings accounts and CD options. American Express National Bank offers seven terms of CDs. The online bank’s CD terms range from six months all the way to five years.
Barclays: 4.25% 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: 4.25% 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.
Alliant Credit Union: 4.25% 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.
Discover Bank: 4.25% APY; $2,500 minimum deposit to open
Few well-known banks offer 10-year CDs. One exception is Discover Bank, which offers CDs across all standard terms. The bank’s yields for its five-, seven- and 10-year CDs are the same, and they’re higher than the rates tied to the rest of its accounts.
Discover is an online bank headquartered in Greenwood, Delaware. Until August 2000, it was known as the Greenwood Trust Co., which was incorporated in 1911.
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, Bank5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, 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, Citizens Bank (Rhode Island), Comerica Bank, Customers Bank, Delta Community Credit Union, Discover 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, Morgan Stanley Private Bank, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, 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.