Interest rates on certificates of deposit (CDs) are at their highest point since the Great Recession, giving savers an opportunity to finally earn decent yields on their savings for the first time in 15 years. To help you find the best 5-year CD rates among them, we evaluated over 140 CDs offered by more than 80 financial institutions, from national banks to credit unions and all sizes in between.
Our picks have some of the highest rates available as well as reasonable minimum balance requirements, good customer service and easy-to-navigate websites and apps.
Annual percentage yields (APYs) are accurate as of July 5, 2024.
Best 5-year CD rates
- Barclays Online certificates of deposit.
- Sallie Mae certificates of deposit.
- Bread Savings certificates of deposit.
- Synchrony Bank certificates of deposit.
- Discover® Certificates of Deposit.
- First National Bank of America certificates of deposit.
- Capital One 360 certificates of deposit.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
Best 5-year CD rates
Barclays Online certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Barclays’ website
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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
3.75%
Minimum deposit requirement
$0
What should you know
Barclays’ five-year CD comes with a 3.75% APY and without a minimum balance requirement. It also has a light early withdrawal penalty that’s equal to 180 days of interest. Its highly-rated mobile app makes it easy for you to monitor your building interest, which compounds daily and is credited monthly.
Sallie Mae certificates of deposit
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On Fiona’s website
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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
4.00%
Minimum deposit requirement
What should you know
Sallie Mae Bank offers a competitive 4.00% APY on five-year CDs. You’ll need a minimum deposit of $2,500 to open one, which is about middle-of-the-road. The interest rate is compounded daily and earnings are credited monthly. Meanwhile, the bank performed well on customer service and digital experience metrics.
Pros and cons
Pros
- Competitive yields.
- No monthly fees.
- Daily compounding interest.
Cons
- High minimum deposit.
- Early withdrawal penalties can affect your principal.
- No checking accounts and limited banking tools.
Bread Savings certificates of deposit
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On Fiona’s website
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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
4.15%
Minimum deposit requirement
$1,500
What should you know
Bread Savings offers a hot APY on its five-year CDs to help your savings rise. Interest is compounded daily and credited to your account monthly. However, if you withdraw funds early, you’ll forfeit 365 days’ worth of interest, which is roughly standard for CDs of this length.
Synchrony Bank certificates of deposit
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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
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On Fiona’s website
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
4.00%
Minimum deposit requirement
$0
What should you know
Synchrony Bank is a great option if you’re just starting to save. All of its CDs have a $0 minimum balance requirement and, if Synchrony raises its rates within 15 days of you opening a CD, you’ll automatically get the higher rate. Currently, its five-year CD has a respectable 4.00% APY. New savers should realize, though, that you’ll owe 365 days’ worth of interest on early withdrawals; make sure you save money you won’t need for half a decade.
Discover® Certificates of Deposit
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On Discover’s website
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
3.75%
Minimum deposit requirement
$2,500
What should you know
Discover offers strong APYs on its long-term CDs–those with five, seven and 10-year terms. The rate compounds daily and is credited to your account monthly. If something happens and you need to cut and run early, the early withdrawal penalty on the five-year CD is on the higher end of our winners: 18 months of interest. Meanwhile, the minimum requirement is higher than we’d like, though not overwhelming.
First National Bank of America certificates of deposit
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On Fiona’s website
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Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
4.50%
Minimum deposit requirement
$1,000
What should you know
The First National Bank of America five-year CD requires only a $1,000 minimum balance and comes with a strong 4.50% APY on its 60-month term. Plus, if you can be tempted with a longer-term, First National is one of the rare banks that offers 72 and 84-month CDs as well. To withdraw funds early, you’ll face the higher penalty of 540 days’ worth of interest.
Capital One 360 certificates of deposit
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
CD APY 60 month
3.90%
Minimum deposit requirement
$0
What should you know
One of the largest banks in the U.S., Capital One offers a one-stop financial shop. Its CDs have competitive rates, no minimum balance requirement and early withdrawals come with a super low penalty of only 180 days’ interest. Its five-year CD earns 3.90% APY, which compounds on a monthly basis.
Compare the best 5-year CDs
| BANK | STAR RATING | FIVE-YEAR APY | MINIMUM BALANCE |
|---|---|---|---|
Sallie Mae Bank | 4.8 | 4.00% | $2,500 |
Bread Savings | 4.7 | 4.15% | $1,500 |
Synchrony Bank | 4.5 | 4.00% | $0 |
Discover | 4.5 | 3.75% | $2,500 |
First National Bank of America | 4.4 | 4.50% | $1,000 |
Barclays | 4.3 | 3.75% | $0 |
Capital One 360 | 4.3 | 3.90% | $0 |
Methodology
We looked at more than 140 CDs offered by 84 financial institutions and evaluated them to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on. Here are the categories we analyzed and how we weighted each.
- APY: 75%.
- Customer experience: 5%.
- Minimum deposit: 5%.
- Compound interest schedule: 5%.
- Digital experience: 5%.
- Available terms: 3%.
- Availability: 2%.
We believe that potential earnings reign supreme, so a CD’s APY was the most heavily-weighed factor in our calculations. Non-APY factors still played a part, with customer experience being an important factor. To round out the score, we analyzed CD accounts further, valuing those with lower minimum deposits, daily compound interest schedules (rather than monthly) and those that are nationally available (think credit unions with an open versus limited membership).
We monitor over 80 financial institutions, including Capital One, PenFed, Discover, Chase, TD Bank, Marcus by Goldman Sachs, TIAA Bank, Colorado Federal Savings Bank and American Express Bank.
Why some banks didn’t make the cut
Not every company made our list for the best five-year CDs. We disqualified many banks and credit unions as they had poor CD rates, high minimum balance requirements and poor digital experiences for customers.
You’ll notice some of the largest banks in the country didn’t make the cut. Most institutions that offer competitive CD rates are relatively smaller—they offer the great rates to attract customers or members. The largest companies enjoy the benefits of being a household name and don’t need to offer higher rates.
The only top 10 bank to make the cut with a best five-year CD is Capital One. As it was established in the mid-1990s, it’s the new kid on the block, relatively speaking, and doesn’t yet have a brand name that generations of Americans have known.
National average interest rate for CDs
Here are the national average deposit rates as of June 17, 2024 from the Federal Deposit Insurance Corporation (FDIC):
| CD TERM | NATIONAL AVERAGE DEPOSIT RATE |
|---|---|
1 month CD | 0.23% APY |
3 month CD | 1.53% APY |
6 month CD | 1.81% APY |
12 month CD | 1.86% APY |
24 month CD | 1.57% APY |
36 month CD | 1.44% APY |
48 month CD | 1.36% APY |
60 month CD | 1.43% APY |
Are 5-year CD rates going up?
CD rates mirror the rise and fall of the federal funds rate, which is set by the Federal Reserve. In 2022, the Federal Reserve pushed short-term interest rates higher seven separate times in its bid to stymie inflation.
Because of this, “we are encouraging clients to stick with high yield savings, money market accounts until the Fed pauses rate hikes and then lock into longer-term CDs,” said Lisa Kirchenbauer, CFP, founder and president of Omega Wealth Management in Arlington.
As of June 26, 2024, the current national high rate for a 5-year CD is 4.65% APY according to Curinos data.
Exactly when CD rates will reach a peak is unknown, but it can pay to be strategic with when you lock in a long-term, five-year CD.
Who should open a 5-year CD?
A five-year CD is a useful savings tool for people who are looking to save for a specific purchase down the road.
For example, you might tuck away funds with the intention of using them as a part of a down payment on your first home purchase. Or you might plan to use the funds to cover a portion of your child’s higher education, especially if they’re close to enrollment.
Five-year CDs allow you to access the magic of compounding interest better than shorter-term CDs. They’re easy to find. Yet, due to a lack of liquidity, a five-year CD isn’t the right spot for an emergency fund or any other funds you might need to have accessible in a pinch.
When do shorter CD terms make sense?
Shorter-term CDs are great for when you have shorter-term savings goals or when you’re unsure whether locking away your cash for so long is sustainable. They’re also good for when you think rates will continue to rise and don’t want to lock in a long-term CD just yet.
They’re a vital part of starting a CD ladder as well.
In a CD ladder, you have a series of CDs with different term lengths from, say, six months or one year, up to five years. Once a shorter-term CD matures, you can reinvest it in a longer-term one (with a higher APY) without worrying about liquidity because your next CD matures soon.
The goal of a ladder is to have all your non-liquid deposits in long-term CDs earning high yields and coming to maturity in cycles so that you’re never too far away from being able to withdraw some cash without penalty.
Should I open a 5-year CD or savings account?
CDs and savings accounts aren’t mutually exclusive. You should have both.
Your savings account should have three- to six-months worth of expenses saved in case hardship strikes and you need to pay for anything from new car tires to an insurance deductible. Online and high-yield savings accounts are great options in which to store your liquid funds.
Once you have emergency savings, then look into the best CDs and other investments.
How are CDs taxed?
At the end of each year, you should receive a Form 1099-INT or Form 1099-OID from your financial institution, reporting how much interest you made.
When you do have to give Uncle Sam his due, “CDs are taxed at both the state and federal levels,” said Seth Mullikin at Lattice Financial in Charlotte.
Frequently asked questions (FAQs)
CDs aren’t the right choice for every saver. But if you aren’t planning on using the funds in the immediate future, a CD can help you tap into higher interest rates. Before committing to a CD, take the time to map out your financial goals and find the best APY on the market.
CDs are considered one of the safest investments you can make. The FDIC insures up to $250,000 of your deposits at each guaranteed bank you use while the National Credit Union Administration does the same for credit unions.
Most CDs have early withdrawal penalties. The longer the CD term, the greater the penalty. Five-year CD early withdrawal penalties can range from Ally Bank’s penalty of 150 days worth of interest (about five months) to TD Bank’s 24 months worth of interest (two years).
