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Best 5-year CD rates – July 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 0.60 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 July 2022

Financial Institution APY – 5 year Minimum Deposit for APY Bank Review
Pentagon Federal Credit Union 3.50% $1,000 Read Review
Bread Savings (formerly Comenity Direct) 3.35% $1,500 Read Review
Popular Direct 3.25% $10,000 Read Review
First Internet Bank of Indiana 3.09% $1,000 Read Review
LendingClub Bank 2.95% $2,500 Read Review
Barclays 2.90% $0 Read Review
Capital One 2.90% $0 Read Review
Synchrony Bank 2.90% $0 Read Review
Marcus by Goldman Sachs 2.90% $500 Read Review
Discover Bank 2.90% $2,500 Read Review
Quontic Bank 2.86% $500 Read Review
TIAA Bank 2.85% $1,000 Read Review
Security Service Federal Credit Union 2.85% $25,000 Read Review
Alliant Credit Union 2.80% $1,000 Read Review
BMO Harris* 2.80% $1,000 Read Review
Navy Federal Credit Union 2.80% $1,000 Read Review
Sallie Mae Bank 2.80% $2,500 Read Review
TAB Bank 2.75% $1,000 Read Review
Live Oak Bank 2.75% $2,500 Read Review
Ally Bank 2.75% $0 Read Review

Note: Annual percentage yields (APYs) shown are as of June 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.

*Rate unavailable in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

**Rate unavailable in Florida and Texas.

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 July 2022

  • Best overall rate: Pentagon Federal Credit Union – 3.50% APY, $1,000 minimum deposit
  • High rate: Bread Savings – 3.35% APY, $1,500 minimum deposit
  • High rate: Popular Direct – 3.25% APY, $10,000 minimum deposit
  • High rate: First Internet Bank of Indiana – 3.09% APY, $1,000 minimum deposit
  • High rate: LendingClub Bank – 2.95% APY, $10,000 minimum deposit
  • High rate: Barclays – 2.90% APY, $0 minimum deposit
  • High rate: Capital One – 2.90% APY, $0 minimum deposit
  • High rate: Synchrony Bank – 2.90% APY, $0 minimum deposit
  • High rate: Marcus by Goldman Sachs – 2.90% APY, $500 minimum deposit
  • High rate: Discover Bank – 2.90% APY, $2,500 minimum deposit
  • High rate: Quontic Bank – 2.86% APY, $500 minimum deposit
  • High rate: TIAA Bank – 2.85% APY, $1,000 minimum deposit
  • High rate: Security Service Federal Credit Union – 2.85% APY, $25,000 minimum deposit
  • High rate: Alliant Credit Union – 2.80% APY, $1,000 minimum deposit
  • High rate: BMO Harris – 2.80%* APY, $1,000 minimum deposit
  • High rate: Navy Federal Credit Union – 2.80% APY, $1,000 minimum deposit
  • High rate: Sallie Mae Bank – 2.80% APY, $2,500 minimum deposit
  • High rate: TAB Bank  – 2.75% APY, $1,000 minimum deposit
  • High rate: Live Oak Bank – 2.75% APY, $2,500 minimum deposit
  • High rate: Ally Bank – 2.75% APY, $0 minimum deposit

Compare: Best 5-year CD rates for July 2022

Best overall rate: Pentagon Federal Credit Union – 3.50% 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.

High rate: 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.

High Rate: Popular Direct – 3.25% 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, 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.

High rate: First Internet Bank of Indiana – 3.09% 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.

High Rate: 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.

High Rate: Barclays – 2.90% 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.

High Rate: Capital One – 2.90% 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 – 2.90% APY, $0 minimum deposit

Synchrony Bank offers competitive yields across 14 regular CD terms. The bank also offers a savings account, a money market account, a no-penalty CD and bump-up CD. The latter two accounts were introduced in May 2022.

High Rate: Marcus by Goldman Sachs – 2.90% 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.

High Rate: Discover Bank – 2.90% 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.

High Rate: Quontic Bank – 2.86% APY, $500 minimum deposit

Quontic Bank was established in 2005 and has its headquarters in New York City. It offers five CD terms, ranging from one to five years that require a $500 minimum opening deposit. Quontic also offers a money market account, a High Yield Savings account and two checking accounts.

High Rate: TIAA Bank – 2.85% APY, $1,000 minimum deposit

TIAA Bank is a division of TIAA FSB and has nine branches, 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 should 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.

High Rate: Security Service Federal Credit Union – 2.85% APY, $25,000 minimum deposit for this APY

Security Service Federal Credit Union was founded in 1956 to serve the needs of members of the U.S. Air Force Security Service Command and their families.

Based in San Antonio, it offers CD terms ranging from three months to seven years. It also offers checking and savings accounts, mortgages, auto loans and credit cards.

High Rate: Alliant Credit Union – 2.80% 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 traditional individual retirement account (IRA) CDs, Roth IRA CDs and SEP IRA CDs.

High Rate: BMO Harris – 2.80% APY, $1,000 minimum deposit

Based in Chicago, BMO Harris operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

BMO offers 15 terms of CDs ranging from three months to five years, with minimum opening deposits of $1,000. The competitive rates offered on CDs with terms six months and longer are unavailable to residents of states where BMO has branches.

High Rate: Navy Federal Credit Union – 2.80% APY, $1,000 minimum deposit

Navy Federal Credit Union has more than 11.6 million members and is the world’s largest credit union. It has a global network of 350 branches. Navy Federal Credit Union has its headquarters in Vienna, Virginia.

In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.

High Rate: Sallie Mae – 2.80% 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.

High Rate: TAB Bank – 2.75% APY, $1,000 minimum deposit

TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers.

It offers a savings account, a money market account and CDs in eight terms, from six months to five years.

High Rate: Live Oak Bank – 2.75% 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.

High Rate: Ally Bank – 2.75% 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.

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.

Pros:

  • 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.

Cons:

  • 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.

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 that contains shorter-term CDs, such as one-, two-, three- and four-year terms, for example. A CD ladder 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, which 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.

To recap our selections:

Bankrate’s best 5-year CD rates for July 2022

  • Pentagon Federal Credit Union – 3.50% APY, $1,000 minimum deposit
  • Bread Savings – 3.35% APY, $1,500 minimum deposit
  • Popular Direct – 3.25% APY, $10,000 minimum deposit
  • First Internet Bank of Indiana – 3.09% APY, $1,000 minimum deposit
  • LendingClub Bank – 2.95% APY, $10,000 minimum deposit
  • Barclays – 2.90% APY, $0 minimum deposit
  • Capital One – 2.90% APY, $0 minimum deposit
  • Synchrony Bank – 2.90% APY, $0 minimum deposit
  • Marcus by Goldman Sachs – 2.90% APY, $500 minimum deposit
  • Discover Bank – 2.90% APY, $2,500 minimum deposit
  • Quontic Bank – 2.86% APY, $500 minimum deposit
  • TIAA Bank – 2.85% APY, $1,000 minimum deposit
  • Security Service Federal Credit Union – 2.85% APY, $25,000 minimum deposit
  • Alliant Credit Union – 2.80% APY, $1,000 minimum deposit
  • BMO Harris – 2.80% APY, $1,000 minimum deposit
  • Navy Federal Credit Union – 2.80% APY, $1,000 minimum deposit
  • Sallie Mae Bank – 2.80% APY, $2,500 minimum deposit
  • TAB Bank  – 2.75% APY, $1,000 minimum deposit
  • Live Oak Bank – 2.75% APY, $2,500 minimum deposit
  • Ally Bank – 2.75% APY, $0 minimum deposit

Learn more about other CD terms:

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