The best 5-year CD rate is 4.80% APY from BMO Alto. To find you the highest 5-year CD rates nationwide, we review CD rates from hundreds of banks and credit unions every day. CD terms of 54-66 months are eligible for our 5-year rankings, with minimum deposit requirements of up to $25,000. For savings that are better kept in the bank than invested in the market, certificates of deposit offer a way to earn more than you might with a standard savings account. Below are the top CD rates available from our partners, followed by the best CD rates that we've found from our research that are available to U.S. customers everywhere.
IN THE NEWS
The Fed held rates steady for a seventh consecutive time at its June 12 meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. CD yields closely follow the fed funds rate. Back in October, CD rates reached peaks not seen in more than 20 years, but once the Fed starts cutting rates, CD rates will fall.
You can find our ranking of the highest CD rates with terms of 54-66 months below. In cases where more than one institution pays the same annual percentage yield, we've prioritized CDs by the shortest term, then the CD requiring a smaller minimum deposit, and if still a tie, alphabetically by institution name.
Best 5-Year CD Rates
- BMO Alto - 4.80% APY
- Grow Financial Federal Credit Union - 4.75% APY
- Credit Human - 4.65% APY
- Pima Federal Credit Union - 4.50% APY
- Dow Credit Union - 4.50% APY
- Seattle Bank - 4.50% APY
- First Internet Bank - 4.50% APY
- First National Bank of America - 4.50% APY
- Farmers Insurance Federal Credit Union - 4.50% APY
- Department of Commerce Federal Credit Union - 4.45% APY
- The Federal Savings Bank - 4.45% APY
- Crescent Bank - 4.40% APY
- Colorado Federal Savings Bank - 4.35% APY
- Lafayette Federal Credit Union - 4.32% APY
- MYSB Direct - 4.31% APY
Detailed information on these top-paying 5-year CDs is provided below, including specifics about minimum deposits and early withdrawal penalties. For credit union CDs, information is also provided on how anyone can join the credit union.
Looking for a wider selection of CDs? See our picks for the best CD rates to see terms ranging from three months to 10 years.
BMO Alto - 4.80% APY
- Term (months): 60
- Minimum deposit: Any amount
- Early withdrawal penalty: 6 months of interest
- About: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account.
Grow Financial Federal Credit Union - 4.75% APY
- Term (months): 60
- Minimum deposit: $500
- Early withdrawal penalty: 6 months of interest
- Overview: Membership is available to anyone nationwide. Grow Financial was chartered in 1955 and is headquartered in Tampa, Florida.
Credit Human - 4.65% APY
- Term (months): 36-59
- Minimum deposit: $500
- Early withdrawal penalty: 12 months of interest ($50 minimum)
- Membership: Anyone can join Credit Human by agreeing to a complimentary membership in the nonprofit American Consumer Council and keeping at least $5 in a member savings account.
Pima Federal Credit Union - 4.50% APY
- Term (months): 60
- Minimum deposit: $250
- Early withdrawal penalty: 50% of the interest left to be earned through the end of the term
- Membership: Anyone can join Pima by making a $20 donation to one of their affiliated nonprofits and keeping at least $5 in a Pima savings account.
Dow Credit Union - 4.50% APY
- Term (months): 60
- Minimum deposit: $500
- Early withdrawal penalty: 12 months of interest
- Overview: Based out of Midland, Michigan, anyone can join Dow Credit Union by making a $10 donation to the Midland Area Community Foundation scholarship fund during the membership application process. Dow Credit Union dates back to 1937 when it was founded to serve employees of Dow Chemical Company.
Seattle Bank - 4.50% APY
- Term (months): 60
- Minimum deposit: $1,000
- Early withdrawal penalty: 6 months of interest
- About: Established in 1999, Seattle Bank serves online customers across the country as well as operates a branch in downtown Seattle.
First Internet Bank - 4.50% APY
- Term (months): 60
- Minimum deposit: $1,000
- Early withdrawal penalty: 12 months of interest
- About: First Internet Bank is so-named for being the first FDIC-insured bank to operate exclusively online. Founded in 1999, it is based in the Indianapolis suburb of Fishers, Ind.
First National Bank of America - 4.50% APY
- Term (months): 60
- Minimum deposit: $1,000
- Early withdrawal penalty: 18 months of interest
- About: First National Bank of America is a Michigan-based community bank established in 1955. In addition to three branches in the state, FNBA offers online banking products to customers nationwide.
Farmers Insurance Federal Credit Union - 4.50% APY
- Term (months): 60
- Minimum deposit: $1,000
- Early withdrawal penalty: Complex formula with a minimum penalty of 6 months' interest
- Overview: Anyone is eligible to join the credit union through membership in the American Consumer Council. Farmers Insurance FCU dates back to 1936 and is headquartered in Burbank, California.
Department of Commerce Federal Credit Union - 4.45% APY*
- Term (months): 48-59
- Minimum deposit: $25,000
- Early withdrawal penalty: 6 months of interest
- Membership: Anyone can join the DCFCU by agreeing to a free membership in the nonprofit American Consumer Council.
*Rates listed in DCFCU's rate charts are 0.10% lower than what's listed here, for a minimum deposit amount of $500. But the fine print indicates that for deposits of $25,000, a 0.10% premium applies.
The Federal Savings Bank - 4.45% APY
- Term (months): 60
- Minimum deposit: $5,000
- Early withdrawal penalty: 12 months of interest
- Overview: The Federal Savings Bank is a national bank with a network of over 55,000 ATMs across the U.S. It offers checking and savings accounts, as well as mortgages and loans. Headquartered in Chicago, it was established in 2000.
Crescent Bank - 4.40% APY
- Term (months): 60
- Minimum deposit: $1,000
- Early withdrawal penalty: 6 months of interest
- Overview: Headquartered in New Orleans, Crescent Bank was founded in 1991.
Colorado Federal Savings Bank - 4.35% APY
- Term (months): 60
- Minimum deposit: $5,000
- Early withdrawal penalty: 6 months of interest
- About: Colorado Federal was founded in 1990 and is headquartered in Greenwood Village, Colorado. In addition to serving communities across the state, it serves customers nationwide with online banking.
Lafayette Federal Credit Union - 4.32% APY
- Term (months): 60
- Minimum deposit: $500
- Early withdrawal penalty: 20 months of interest
- Membership: Anyone can join Lafayette Federal with a $10 membership in the Home Ownership Financial Literacy Council and $50 or more held in a savings account.
MYSB Direct - 4.31% APY
- Term (months): 60
- Minimum deposit: $500
- Early withdrawal penalty: All interest (3 months minimum)
- About: MYSB Direct is the online banking arm of M.Y. Safra Bank, which is headquartered in New York City and operates a single branch there.
Fast Fact
When asked in late April what they would invest in if they had an extra $10,000, 12% of Googlawi readers said they would open a CD. Back in December and January, 11% and 9% of readers (respectively) said they’d invest extra funds in CDs, with that share dipping even further to 8% in March. While CDs sit below individual stocks as the top response (at 19%), CDs are always a good option for those looking for safer investments.
Pros and Cons of a 5-Year CD
- Interest rate is locked for five years
Interest rate is locked for five years
- Pays completely predictable earnings
Pays completely predictable earnings
- Extremely safe
Extremely safe
- Potentially higher APY than other options
Potentially higher APY than other options
- Discourages spending
Discourages spending
- Future interest rates are impossible to predict
Future interest rates are impossible to predict
Pros Explained
- Interest rate is locked for five years: When you open a 5-year CD, you get to keep that rate for the entire duration of the CD. Even if interest rates tanks after you lock in your certificate, the bank cannot change the rate you agreed to until the five years are concluded.
- Pays completely predictable earnings: Since you know the precise rate you'll earn for the full five years of your CD's term, you can determine exactly how much your CD balance will be when your term ends.
- Extremely safe: All CDs held at FDIC banks or NCUA credit unions are insured by the federal government for up to $250,000 per person per institution. So even if the institution fails, your CD funds are protected.
- Potentially higher APY than other options: Depending on the current interest rate environment, 5-year CDs may pay higher rates than savings and money market accounts or shorter CDs. It's not always true, but in times when rates are falling, 5-year CD rates are often the best-paying deposit account.
- Discourages spending: Because your funds are committed in a CD with threat of a penalty if you withdraw the money early, you may be deterred from the temptation to spend your savings on something unplanned.
Cons Explained
- Penalty is incurred if you withdraw early: When you open a CD, the bank or credit union will spell out in the agreement how it will calculate an early withdrawal penalty should you request to take your money out before maturity. Most typically, you'll have to forfeit a certain number of months of interest.
- Only allows a single deposit: You fund CDs with a one-time deposit when you open the certificate. Only in "add-on" CDs, an uncommon niche product, can you make additional deposits to the same certificate.
- If rates rise, you're locked at a lower rate until maturity: If interest rates go up while you are locked into a 5-year CD, you will be stuck with your rate until the end of your term, preventing you from capitalizing on the higher rates.
- Future interest rates are impossible to predict: Over a five-year timeline, it is not possible to forecast if interest rates will rise or fall, or even hold steady for years. So it's difficult to predict whether a 5-year CD rate will be competitive or not several years down the road.
Beware of early withdrawal penalties that can eat into your CD's principal. Losing earned interest when incurring a penalty is to be expected, but avoid certificates where even your principal deposit could be at stake.