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The best 5-year CDs far outpace the national average CD rate on 5-year terms, which is 1.42% APY (Annual Percentage Yield). Generally, online banks and credit unions offer the best CD rates.
The best 5-year CD rate is 4.32% APY from the Lafayette Federal Credit Union.
The top 5-year CDs pay high interest rates. They also might have low minimum opening deposits, low early withdrawal penalties, and strong mobile banking appsto put them over the top.
Featured 5-year cd
Quontic 5 Year CD
Quontic Bank, Member FDIC
Annual Percentage Yield (APY)
3.50%
Minimum Opening Deposit
$500
Pros
- Competitive APY
- $500 opening deposit
Cons
- Limited term options
- High early withdrawal penalties
Product Details
- Term lengths: 6 months, 1 year, 2 years, 3 years, 5 years
- Early withdrawal penalties: All interest earned for terms under 1 year, 1 year of interest for 1-year terms, 2 years of interest for terms of 2 years or longer
- Interest compounded daily, paid monthly
- FDIC insured
A 5-year CD may be ideal if you don't need access to some of your savings for a few years. If you're also interested in other CD term lengths, check out our overall best CD rates guide.
We check rates daily to find the best rates for 5-year terms. Here are our top picks for 5-year CDs.
Best 5-Year CD Rates
- Lafayette Federal Credit Union 5 Year Certificate: 4.32% APY
- BMO Alto 5 Year High Yield CD: 4.10% APY
- First Internet Bank of Indiana 5 Year CD: 4.09% APY
- Department of Commerce Federal Credit Union 5 Year Share CD: 4.08% APY
- Synchrony 5 Year CD: 4.00% APY
- Marcus 5 Year CD: 4.00% APY
- MYSB Direct 5 Year CD: 4.00% APY
- Northern Bank Direct 5 Year CD: 4.00% APY
Compare the Best 5-Year CDs
The best 5-year CDs pay well above average CD rates for a 5-year term. We also highlight whether a CD stands out for a low minimum opening deposit and lenient early withdrawal penalties. If the bank or credit union also has other competitive CD terms, we mention them, too.
Our top picks for CDs are protected by FDIC or NCUA insurance. Money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Lafayette Federal Credit Union 5 Year Certificate
Start saving
On Lafayette Federal Credit Union's website
Insider’s Rating
3.75/5
Annual Percentage Yield (APY)
4.32%
Minimum Opening Deposit
$500
Pros
- High APY
- $500 minimum opening deposit
- Standard CD terms
Cons
- Standard-to-high early withdrawal penalties
- Interest compounded quarterly, not daily
Product Details
- 8 Financial Service Centers in parts of Maryland, Virginia, and Washington, DC
- Access to 5,000 shared-credit union branches and 30,000 surcharge-free ATMs nationwide
- To become a member of Lafayette Federal Credit Union, you must meet one of the following requirements: live, work, or worship in Potomac, MD, or parts of Washington, DC; work at a Select Employer Group; become a member of the Home Ownership Financial Literacy Council regardless of where you live in the U.S.; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC; or have a family member with credit union membership
- Fixed-rate certificates ranged from 7 months to 5 years
- Interest compounded and paid quarterly
- Early withdrawal penalties: 90 days of interest for a 7-month term; 180 days of interest for a 1-year term; 270 days of interest for a 2-year term; 360 days of interest for a 3-year term; 480 days of interest for a 4-year term; 600 days of interest for a 5-year term
- Federally insured by the NCUA
BMO Alto 5 Year High Yield CD
BMO Bank N.A. Member FDIC
Annual Percentage Yield (APY)
4.10%
Minimum Opening Deposit
$0
Pros
- Low minimum opening deposit
- High interest rates
- Standard-to-low early withdrawal penalties
Cons
- Limited term lengths
- Cannot go to BMO branches for support
- No mobile app
Insider’s Take
BMO is a great choice if you want a free savings or checking account. It also offers impressive checking account bonuses. But you'll want to look elsewhere to earn high interest rates.
BMO Alto 5 Year High Yield CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- BMO Alto is an online-only division of BMO
- Terms range from 6 months to 60 months
- Early withdrawal penalties: For terms of 11 months or less, the penalty is 90 days of interest; For terms of 1 year or more, the penalty is 180 days of interest
- Interest is compounded daily and deposited monthly
- FDIC insured
First Internet Bank of Indiana 5 Year CD
Start saving
On First Internet Bank of Indiana's website
Insider’s Rating
4/5
Annual Percentage Yield (APY)
4.09%
Minimum Opening Deposit
$1,000
Pros
- Competitive APY
- Standard early withdrawal penalties
Cons
- $1,000 opening deposit
- Interest is compounded monthly, not daily
First Internet Bank of Indiana 5 Year Certificate of Deposit review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Terms ranging from 3 months to 5 years
- 90 days interest early withdrawal penalty for 3-month term; 180 days interest for 6-18 month term; 365 days interest for 24-60 month term
- Interest is compounded monthly and paid monthly
- Member FDIC
Synchrony 5 Year CD
On Synchrony's website
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$0
Pros
- Competitive APY
- Variety of term lengths
- No minimum deposit
Cons
- No terms over 5 years
- Standard-to-high early withdrawal penalties
Synchrony 5 Year CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- When you're ready to cash out your CD, you must call Synchrony
- Interest compounded daily, paid monthly
- FDIC insured
Marcus 5 Year CD
Start saving
Marcus, FDIC Insured Account
Insider’s Rating
4.25/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$500
Pros
- Competitive APY
- Variety of term lengths
- $500 initial deposit
- Easy-to-use mobile app
- Standard early withdrawal penalties
Cons
- No physical branch locations
Marcus by Goldman Sachs 5 Year High-Yield CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Terms ranging from 6 months to 6 years
- 90 days interest early withdrawal penalty for a CD term of under 12 months, 180 days interest penalty for a CD term of 12 months to 5 years, 270 days interest penalty for a CD term of more than 5 years
- Compounding interest to maximize your earnings
- No monthly maintenance fees
- FDIC insured
MYSB Direct 5 Year CD
Start saving
M.Y. Safra Bank, FDIC Insured
Insider’s Rating
3.25/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$500
Pros
- High interest rate
- $500 minimum opening deposit
Cons
- Interest compounded monthly, not daily
- High early withdrawal penalties
Product Details
- NY-based financial institution that serves customers nationwide
- Terms range from 6 months to 5 years
- Early withdrawal penalty for all terms is 90 days of interest or all the interest you've earned to that point, whichever is greater
- Interest compounded and deposited monthly
- FDIC insured
Northern Bank Direct 5 Year CD
Insider’s Rating
3.25/5
Annual Percentage Yield (APY)
4.00%
Minimum Opening Deposit
$500
Pros
- Competitive interest rate
- $500 minimum deposit
Cons
- High early withdrawal penalties
- Interest compounds monthly, not daily
Northern Bank Direct 5 Year CD review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Online account available nationwide; you can also visit 13 branches in Massachusetts
- Early withdrawal penalties range from 6 months to 36 months interest
- Interest compounded monthly
- Member FDIC
5-Year CD Reviews
Lafayette Federal Credit Union 5 Year Certificate
Lafayette Federal Credit Union pays a high interest rate on a 5-year term. It also offers competitive rates for its other certificate terms, including one of the best 3-year CD rates.
You only need $500 to open an account. Usually, you'll need at least $1,000 to open a CD at a financial institution.
To open a certificate you must meet membership requirements. You can join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.
APY for 5-year CD:4.32% APY
5-year CD early withdrawal penalty:600 days of interest
BMO Alto 5 Year High Yield CD
The BMO Alto High Yield CD may be a good choice if you'd like to open an online CD with a $0 minimum opening deposit. BMO Alto is the online-only division of BMO Bank, and its accounts are available nationwide.
BMO Alto doesn't have a mobile app. Also, you can't go to a BMO Bank location to get customer support for BMO Alto accounts. That said, customer service for BMO Alto is available 24/7 by phone.
APY for 5-year CD: 4.10% APY
5-year CD early withdrawal penalty: 180 days of interest
BMO Savings and CD Accounts
First Internet Bank of Indiana 5 Year CD
The 5-year First Internet Bank of Indiana CDpays a higher interest rate than most brick-and-mortar and online banks.
First Internet Bank of Indiana also might be appealing if you're looking for a money market account.
First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 5-year CD.
APY for 5-year CD: 4.09% APY
5-year CD early withdrawal penalty:360 days of interest
First Internet Bank of Indiana Review
Department of Commerce Federal Credit Union 5 Year Share CD
The Department of Commerce Federal Credit Union 5 Year CD has a $500 minimum deposit. That's low compared to other banks, which usually require at least $1,000 to open an account.
Department of Commerce FCU allows all United States citizens and residents to open an account. The easiest way to become a member regardless of where you live in the U.S. is to join the American Consumer Council.
APY for a 5-year CD: 4.08% APY
5-year CD early withdrawal penalty:180 days of interest
Synchrony 5 Year CD
Synchrony offers a good rate for its 5-year CD. Its required minimum opening deposit is $0, which is very rare for a CD. If you're hoping to put a small amount of money in a CD, this might be a good choice for you.
Synchrony's early withdrawal penalties can be high, depending on the term. If you think there's a chance you'll need to withdraw your money before the end of the term length, you might want to go with another bank.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 1 year of simple interest
Synchrony Bank Review
Marcus 5 Year CD
Marcus offers a good rate for 5-year CDs; it also requires a lower-than-average minimum opening deposit of $500. If you want to open a CD with a smaller amount of money, Marcus might be a good choice for you.
If you only want to use one bank for all of your financial needs, Marcus might not be your best choice. Marcus doesn't have a checking account, so you'll have to use another bank that does in addition to using Marcus.
APY for 5-year CD: 4.00% APY
5-year early withdrawal penalty: 180 days of interest
Marcus Bank Review
MYSB Direct 5 Year CD
MYSB Direct CDs pay a competitive interest rate and have a low minimum opening deposit. For example, you can get one of the best 2-year CD rates and 5-year CD rates at the institution.
M.Y. Safra Bank is a New York-based financial institution that serves customers nationwide and its online-only division is MYSB Direct.
The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 90 days of interest
Northern Bank Direct 5 Year CD
Northern Bank Direct has good rates on 18-month, 2-year, and 5-year CDs. If you're planning on opening multiple CDs with the same bank, Northern Bank Direct might be a good choice for you. It also has a low minimum opening deposit of $500.
Northern Bank Direct charges high early withdrawal penalties. If you think there's a chance you'll need to withdraw your money before the term length ends, you might want to go with another bank.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 3 years of interest
Northern Bank Direct Review
BankTrustworthinessandBBBRatings
We've compared each company'sBetter Business Bureauscore. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:
Institution | BBB rating |
Lafayette Federal Credit Union | A+ |
BMO Alto | A+ (rating of BMO Bank) |
First Internet Bank of Indiana | A+ |
Department of Commerce Federal Credit Union | NR |
Synchrony | NR |
Marcus | A+ |
MYSB Direct | NR (rating of parent bank, M.Y. Safra Bank) |
Northern Bank Direct | A+ |
Department of Commerce Federal Credit Union has an NR grade because the BBB says it has services that are outside the scope of what the BBB reviews.
MYSB Direct currently has an NR (No Rating) grade because the BBB doesn't have enough information to provide a rating.
Synchrony has an NR rating from the BBB because the business is currently responding to previously closed complaints.
BMO has been involved in one recent public controversy. In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO bought M&I Bank in 2011.
Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay$2.6 million in a settlementwhen accused of calling customers about bank accounts they didn't have.
In 2021, the bank also was required to pay$3.5 million in a settlementwhen accused of making unreasonable phone calls to debtors living in California.
What Influences the Best 5-Year CD Rates
Federal Reserve Policies
The Federal Open Market Committee, a branch of the Federal Reserve, is in charge of managing the federal funds rate. During at least eight meetings held per year, the FOMC assesses economic conditions and decides if the federal funds rate should be changed.
National CD rate trends are influenced by changes in the federal funds rate. CD rates often increase when the federal funds rate goes up, and CD rates will often decline when the federal funds rate drops.
Economic Conditions and Long-Term Outlook
The CD rate forecast for 2024 is that rates on all types of savings accounts are expected to decline. However, the exact time and pacing when CD rates will fall depends on economic conditions. Banks also have their own criteria for setting rates.
Furthermore, short-term CDs offer more competitive rates than long-term CDs because of the current economic environment. CD rate trends will likely shift once the Federal Reserve begins cutting rates. It's unclear when the Federal Reserve will start rate cuts, but paying attention to upcoming Fed meetings can help you stay up to date on news.
Competition and Individual Offers
Banks occasionally have promotions for specific terms, including 5-year CDs. If you're looking at a promotional CD, review the requirements needed to obtain the highest rate.
Sometimes, banks will only promotional CDs for new customers or customers who have specific bank accounts. You also might be required to deposit "new money." Each bank will define what new money means in the listed requirements, but generally, it refers to money that hasn't been deposited at their financial institution.
Should You Lock In a 5-Year CD?
While there are other terms that pay higher CD rates, the best 5-year CDs still offer good rates overall. Experts recommend keeping money in a CD term that fits your savings goals, so if you need to keep your money in a relatively low-risk place for around 5 years, these CDs are a good match.
A 5-year CD is also a great option if you're building a CD ladder. It can help balance out short-term CDs, since national CD rates trends are likely to shift.
5-Year CD FAQs
What is the best 5-year CD rate right now?
The best 5-year CD rate is 4.32% APY from the Lafayette Federal Credit Union.
What are 5-year CDs paying now?
The most competitive 5-year CDs pay between 4.00% APY to 4.32% APY.
Why are 5-year CD rates generally the highest?
Actually, short-term CD rates are higher than long-term CD rates because there's economic uncertainty. The Fed Reserve is likely to make rate cuts in the future, but it's unclear when they'll start.
Do the best 5-year CD rates stay the best over the whole term?
The most competitive term available at a bank can vary. Banks set their own criteria for changing CD rates. However, many are also influenced by the Federal Reserve's actions, economic conditions, and competition.
Are 5-year CDs too risky?
A 5-year CD is a type of savings account with a fixed interest rate. It's low-risk because insured deposits are protected by FDIC insurance (up to $250,000 per depositor, per ownership account category).
What if I need my money before a 5-year CD matures?
Before you make an early withdrawal, assess how the early withdrawal penalties will affect your total interest earnings. Then, you have to consider whether you're OK with taking the penalty or leaving money in the CD until it reaches maturity.
Why You Should Trust Us: Expert Advice on Choosing the Best 5-Year CD
To learn more about what makes a good CD and how to choose the best fit, Business Insider consulted four experts:
- Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
- Roger Ma, CFP® professional with lifelaidout®and author of"Work Your Money, Not Your Life"
- Sophia Acevedo, banking editor, Business Insider
- Mykail James, MBA, CFEI, BoujieBudgets.com
Here's what they had to say about CDs.
How do you decide how long your CD term should be?
CDs come in different terms that range from months to years, and a 5-year CD is typically one of the longest terms available. When choosing the right term for you, start with how you're going to use the money, and when. If you're buying a house in five years and know you won't need the money until then, a 5-year CD might work for your needs — however, if you're buying that house in two years, you'll need to choose a shorter term.
Once you know when you'll need the money, you can take a look at available rates. Maybe you have some flexibility around when you'll need the money, and find it worth leaving in the bank an extra six months or year to get a higher rate.
Should you put money in a high-yield savings account, money market account, or CD?
You're allowed to have multiple types of accounts, and it's OK to put money in different places for different purposes. Perhaps you want a high interest rate on money you can access at any time for an emergency, so you put that emergency fund in a high-yield savings account. Then, you want a savings account from which you can make regular withdrawals, so you use a money market account. Finally, you want to keep a nest egg out of sight and out of mind while earning a strong interest rate, so you use a CD.
Choosing which type of account to use comes down to how you plan to use that money, and when.
Our Methodology: How We Chose the Best 5-Year CDs
Business Insider's personal finance team researched over 60 banks and credit unions to find the best 5-year CD rates. We reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Banking reporter
Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years.ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Lifeseries with Business Insider.ExpertiseTheir expertise includes:
- Certificates of deposit
- Savings accounts
- Checking accounts
- CD rates
- Bank reviews
EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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