Use this free CD calculator to find out how much interest is earned on a CD.
A certificate of deposit, or CD, is an account that allows you to stash away some cash and earn fixed interest on it for a set period of time.
A 5-year CD can get you one of the highest savings rates while offering safety and a guaranteed return. In exchange for handing over your money for a longer term, banks are usually willing to offer you a higher interest rate. However, with the uncertainty over the future direction of interest rates, it makes figuring out where to park your cash a hard decision. The Federal Reserve isn't planning to cut rates again in the near future, but that could change.
Although average 5-year CD rates are hovering around 0.61 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.
|Financial Institution||APY - 5 year||Minimum Deposit for APY||Bank Review|
|Delta Community Credit Union||1.75%||$1,000|
|Golden 1 Credit Union||1.50%||$500|
|VyStar Credit Union||1.40%||$500|
|First Internet Bank of Indiana||1.36%||$1,000|
|Randolph-Brooks Federal Credit Union||1.26%||$1,000|
|America First Credit Union||1.25%||$500|
|Suncoast Credit Union||1.25%||$500|
|Navy Federal Credit Union||1.25%||$1,000|
Note: The APYs (Annual Percentage Yield) shown are as of June 30, 2020. 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. (*Review links for some online banks may point to the parent bank's most recent review by Bankrate.)
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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 Federal Deposit Insurance Corp. (FDIC) banks or by the National Credit Union Share Insurance Fund (NCUA) at National Credit Union Administration (NCUA) credit unions.
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.
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 Corp. (FDIC), you can rest easy knowing each depositor is protected up to at least $250,000 per insured bank. At a National Credit Union Administration (NCUA) credit union, the standard share insurance amount is up to $250,000 per share owner, per insured credit union, for each ownership category.
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 it outweighs the benefit of a few extra basis points of interest on your savings.
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 has 26 branches in metro Atlanta and 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.
Golden 1 Credit Union has one million members with its main office being located in Sacramento, California. Golden 1 Credit Union has 72 branches in California, and has been around since 1933. Membership to Golden 1 Credit Union is open to all Californians.
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.
TIAA Bank is a division of TIAA, FSB. TIAA Bank has 10 financial centers, all located in Florida.
TIAA Bank offers a Yield Pledge Checking account, a Yield Pledge Money Market, Yield Pledge CDs and other products. TIAA Bank’s CDs require a $5,000 minimum to open one. TIAA Bank does offer IRA-eligible CDs.
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 terms ranging from three months to five years. It also offers a one-year CD for Kid’s, VyTeen, Bravo and Achieve members only.
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 offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.
Quontic Bank was established in 2005 and has its headquarters in New York. Quontic Bank calls itself the Adaptive Digital Bank.
You only need $500 to open a Quontic Bank CD. Quontic Bank offers five terms of CDs, ranging from one year to five years.
In addition to its CDs, Quontic Bank also has a money market account, a High Yield Savings account and two checking accounts.
Randolph-Brooks Federal Credit Union has more than 55 branches. It has at least one location in Austin, Corpus Christi and San Antonio.
Randolph-Brooks Federal Credit Union was established in 1952 and has its headquarters in Live Oak, Texas.
Besides its CDs, it offers a Really Free Checking account that doesn’t require a minimum balance and it doesn’t have a monthly fee.
America First Credit Union was founded in 1939 in Salt Lake City, Utah. It has 131 locations and is the ninth largest credit union, based on assets, in the U.S. It’s also the sixth largest based on membership with more than a million members.
America First Credit Union offers a Regular Checking account, Money Market Checking, Share Savings, a Money Market, CDs and other products.
Suncoast Credit Union was started in 1934 as Hillsborough County Teachers Credit Union. Suncoast Credit Union now has 69 branches and has more than 866,000 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.
Navy Federal Credit Union has more than 8.8 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.
BMO Harris has both a regional presence and offers online accounts. The bank operates more than 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. Its headquarters is located in Chicago.
There is only a $1,000 minimum balance required to open a BMO Harris one-year CD. However, you’ll want to put at least $5,000 into the CD to get a much more competitive yield.
Synchrony Bank offers competitive yields across 12 terms. All standard CD terms typically offered by banks and credit unions are available.
If Synchrony Bank receives your CD deposit within the 15-day period -- and the CD rate increased, you’ll receive this higher rate.
The bank also offers a savings account and a money market account. The savings account has a competitive APY and has no minimum balance requirement.
Ally Bank started in 2004 and is headquartered in Sandy, Utah. In 2009, GMAC Bank was transformed into Ally Bank. Ally Bank exceeded 1 million Ally Bank customer accounts in 2012 and currently has 1.5 million customers.
Its 11-month no-penalty CD offers three tiers of interest. Those tiers are less than $5,000, between $5,000 and $24,999.99 or at least $25,000.
Besides its no-penalty CD, Ally Bank also offers a checking account, a money market account, term CDs, two terms of a Raise Your Rate CD.
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 made its debut in October 2016 with just unsecured personal loans before it began offering a savings account and CDs under the Marcus by Goldman Sachs brand in November 2017.
Discover Bank may be known for its 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 ranging in terms as short as three months to 10 years.
Besides a savings account, it also offers a checking account and a money market account.
Citizens Access launched in July 2018. It made its debut with a savings account and CDs. And then in November 2019 it added an 11-month liquid CD and stopped offering the six and 18-month CDs.
The bank offers a competitive yield on its CDs and savings account. All of its products require a $5,000 minimum deposit.
The COVID-19 pandemic is deepening financial hardships for millions of Americans.
While CD rates are not likely to rise in this environment, their stability can offer some comfort to those who still have extra cash on hand. The rate on a CD stays the same during the deposit term and the account holder knows exactly when that term will end. With their locked-in interest rates, CDs are also a great choice to avoid the stock market’s ups and downs.
Looking at the following things will help you choose the right CD for you:
Before getting a 5-year CD, consider the pros and cons to see if it's the right fit for you.
To recap our selections...
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 account.
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.
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 APY is on a CD. 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.
With a 5-year CD, savers earn a premium in addition to the normal risk-free rate they get 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.
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.
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 at NCUA institutions.
Use this free CD calculator to find out how much interest is earned on a CD.
Find out how to maximize returns on your CD with CD laddering.
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