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Best 5-year CD rates - November 2023

Best available rates across different account types for Thursday, November 30, 2023

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

Bread Savings

Bread Savings_logo
Rating: 4.3 stars out of 5


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.
Invest Rate
4.75% APY
$1,500 minimum deposit

Popular Direct

Popular Direct_logo
Rating: 4 stars out of 5


Popular Direct is an online bank and 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 ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.
Invest Rate
4.70% APY
$10,000 minimum deposit

SchoolsFirst Federal Credit Union

SchoolsFirst Federal Credit Union_logo
Rating: 4 stars out of 5


SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934.

SchoolsFirst Federal Credit Union (SchoolsFirst FCU) has CD terms from as short as 30 days to as long as five years. The more money you put in your CD, the higher the APY. CDs at this credit union have four balance tiers: $500, $20,000, $50,000 or $100,000.
Invest Rate
4.60% APY
$500 minimum deposit

First Internet Bank of Indiana

First Internet Bank of Indiana_logo
Rating: 4.6 stars out of 5


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.
Invest Rate
4.59% APY
$1,000 minimum deposit

Barclays Bank

Barclays Bank_logo
Rating: 4.8 stars out of 5


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.
Invest Rate
4.50% APY
$0 minimum deposit

Alliant Credit Union

Alliant Credit Union_logo
Rating: 4.7 stars out of 5


Alliant Credit Union was founded in 1935 as the United Airlines Employees’ Credit Union. It is one of the largest credit unions in Illinois and has 600,000 members nationwide. Alliant is an online credit union and doesn’t have branches.

Alliant offers six terms of CDs with competitive APYs and a reasonable minimum deposit requirement. It also offers IRA CDs, a high-yield savings account and a high-yield checking account.
Invest Rate
4.35% APY
$1,000 minimum deposit

Quontic Bank

Quontic Bank_logo
Rating: 3.8 stars out of 5


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.
Invest Rate
4.30% APY
$500 minimum deposit

America First Credit Union

America First Credit Union_logo
Rating: 4.2 stars out of 5


America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500.

It also offers a variety of checking and savings accounts.
Invest Rate
4.20% APY
$500 minimum deposit

Ally Bank

Ally Bank_logo
Rating: 5 stars out of 5


Ally Bank is an online-only bank formerly known as GMAC Bank. Ally offers seven terms of CDs, a no-penalty CD and two terms of a Raise Your Rate CD.

The Sandy, Utah-based bank also offers a savings account, an interest-bearing checking account and a money market account. Ally has 2.5 million customers with deposit accounts.
Invest Rate
4.10% APY
$0 minimum deposit

Capital One

Capital One_logo
Rating: 4.9 stars out of 5


Capital One has both a brick-and-mortar presence and is an online bank. It has 333 branches and around 50 Capital One cafes. It offers nine competitive terms of regular CDs.

Capital One’s 360 Performance Savings account and its CDs don’t have minimum balance requirements. Capital One is based in McLean, Virginia.
Invest Rate
4.10% APY
$0 minimum deposit

In the news

After 11 consecutive rate hikes, the Federal Reserve didn’t raise rates for the second time in a row during its November 2023 meeting. While another rate increase this year is uncertain, 94 percent of economists polled by Bankrate believe the Fed may start cutting rates in 2024.

With uncertainties about further rate increases and the possibility of rate cuts in the coming year, it might be an opportune time to think about a long-term investment strategy. Some shorter-term CDs are currently offering higher rates, but a five-year CD can guarantee a high rate for a longer amount of time, and it may be worth considering as part of a CD ladder. 

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 Federal Deposit Insurance Corporation (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.)

When should you get a 5-year CD?

For those with a longer financial horizon and no need to access funds at a moment’s notice, a five-year CD can be a great choice. Because they earn a guaranteed rate for the whole term, five-year CDs are suitable for those who want to grow some of their savings over a half-decade, without the volatility associated with stocks or mutual funds

CDs typically come with penalties for early withdrawal, so they’re best for those who are confident they won’t need to access their funds in the interim. If there’s a chance you’ll need the money for unexpected expenses or opportunities, it might be wise to explore more liquid savings accounts

Alternatively, you could invest some money in a five-year CD and some in shorter-term CDs to build a CD ladder, ensuring that a portion of your savings will be accessible in the shorter term. 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.

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 a 5-year CD


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    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 for such things as emergencies or living expenses. It’s also important to understand the early withdrawal penalty that you’d incur if you needed to withdraw your funds sooner.

  • Checkmark

    Safety — CDs from FDIC-insured banks and NCUSIF-backed credit unions are backed by the full faith and credit of the U.S. government up to $250,000.

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    High returns — Banks generally sometimes 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.

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    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 fits your needs.

  • Checkmark

    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.

  • 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 could miss out on investing in a higher-rate CD.

What an inverted yield curve means for CDs

Traditionally, longer-term CD rates have been higher than shorter-term ones. This isn’t always the case, however. A yield-curve inversion is what happens when short-term rates are actually higher than long-term ones. Whether it applies to Treasurys or CDs, when yield curves invert, it’s an indicator that investors are expecting a downturn in the economy.

Currently, a yield-curve inversion is in place when it comes to average CD yields, which are as follows, based on Bankrate data for Nov. 30, 2023:

  • 1-year CD average: 1.74 percent APY
  • 2-year CD average: 1.47 percent APY
  • 5-year CD average: 1.43 percent APY

When you’re in the market for a new CD and a yield curve inversion is in place, it’s important to look at all CD terms instead of assuming longer terms will earn more favorable APYs than shorter ones.

5-year CD FAQs

Research methodology

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: annual percentage yield (APY), the minimum 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 the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.