Find a Qualified Financial Advisor
Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Start your search now.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
Also Read– The 2025 Social Security COLA Will Be Announced in October. Here’s What That Means for Retirees.
Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.
The best 5-year CD rate is 4.00% APY from Synchrony and several other places.
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 top 5-year CDs pay high interest rates. They also might have low minimum opening deposits, low early withdrawal penalties, and strong mobile banking apps to put them over the top.
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
- Synchrony 5 Year CD: 4.00% APY
- Marcus 5 Year CD: 4.00% APY
- EFCU Financial 5 Year Certificate: 4.00% APY
- Securityplus Federal Credit Union 5 Year Share Certificate: 4.00% APY
- BMO Alto 5 Year High Yield CD: 4.00% APY
- USALLIANCE Financial 5 Year Certificate: 4.00% APY
- Connexus Credit Union 5 Year Share Certificate: 3.91% APY
- MYSB Direct 5 Year CD: 3.90% 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.
5-Year CD Reviews
Synchrony 5 Year CD
Synchrony offers the best rate for its 5-year CD along with several other financial institutions. Its 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
Also Read- Social Security COLA raise: How much will recipients get in 2025?
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
EFCU Financial 5 Year Certificate
EFCU Financial has good rates on several CDs, including its 5-year CD. If you’re hoping to open multiple CDs at the same financial institution, it might be a good choice for you.
EFCU Financial has to limit who can join since it’s a credit union. That being said, EFCU Financial is easier to join than most. You can join by donating to either the Louisiana Wildlife Federation or The Arc of Baton Rouge. You can also join by living, working, worshipping, or going to school in certain parts of Louisiana or by having a relative who’s a member of the credit union.
APY for a 5-year term: 4.00% APY
5-year early withdrawal penalty: 180 days of interest
Also Read– My husband’s pension was $8,000 a month. As his survivor, I only get $1,800. Can I fight this?
Securityplus Federal Credit Union 5 Year Share Certificate
Securityplus Federal Credit Union has a good rate on its 1-year and 5-year certificates. If you’re hoping to open multiple CDs with the same financial institution, Securityplus might be a good choice for you. Securityplus is also a Black-owned credit union. If you want to support a minority depository institution, Securityplus might be a good choice for you.
As a credit union, Securityplus has membership eligibility requirements you have to meet to open an account. The easiest way to qualify to join Securityplus is to join the American Consumer Council. You can also meet the eligibility requirements by working for certain groups, living, working worshipping, or attending school in the City of Baltimore, or being a family member of another Securityplus member.
APY for 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 90 days of interest
BMO Alto 5 Year High Yield CD
The BMO Alto 5 Year 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: 4.00% APY
5-year CD early withdrawal penalty: 180 days of interest
Also Read– How to Structure Retirement Income to Tamp Down Taxes
USALLIANCE Financial 5 Year Certificate
USALLIANCE Financial offers a strong rate on its 5-year CD with a low minimum opening deposit. It also offers good no-penalty CD.
To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services.
APY for a 5-year CD: 4.00% APY
5-year CD early withdrawal penalty: 360 days of interest
Connexus Credit Union 5 Year Share Certificate
Connexus Credit Union offers a good rate for its 5-year term. And while credit unions limit who can join, Connexus makes it easier than most. Anyone in the U.S. can become eligible for membership by joining the Connexus Association, which requires a one-time $5 donation.
Connexus requires a steep minimum opening deposit of $5,000. If you’re not looking to put that much money into a CD, one of our other picks might be a better choice.
APY for a 5-year CD: 3.91% APY
5-year CD early withdrawal penalty: 365 days of interest
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: 3.90% APY
5-year CD early withdrawal penalty: 90 days of interest
Also Read– How to Structure Retirement Income to Tamp Down Taxes
Bank Trustworthiness and BBB Ratings
We’ve compared each company’s Better Business Bureau score. 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 |
| Synchrony | NR |
| Marcus | A+ |
| EFCU Financial | A+ |
| Securityplus Federal Credit Union | A+ |
| BMO Alto | A+ (rating of BMO Bank) |
| USALLIANCE Financial | D- |
| Connexus Credit Union | A+ |
| MYSB Direct | NR (rating of parent bank, M.Y. Safra Bank) |
Synchrony has an NR rating from the BBB because the business is currently responding to previously closed complaints.
USALLIANCE Financial has a D- rating from the BBB because it has not responded to several complaints filed against the business.
MYSB Direct currently has an NR (No Rating) grade because the BBB doesn’t have enough information to provide a rating.
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 settlement when 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 settlement when accused of making unreasonable phone calls to debtors living in California.
Also Read– 5 Devices To Get Rid of This Winter That Add Hundreds to Your Electricity Bill
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. The Federal Reserve cuts interest rates for the first time in four years at the September Fed meeting. More rate cuts are anticipated toward the end of the year. However, it’ll take time for CD rates to significantly decline.
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.
Also Read– Americans souring on Secret Service after Trump shooting, poll finds
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.
When you’re choosing where to open a 5-year CD, make sure to compare various financial institutions in order to seek the best CD rates. You should also think about your overall banking experience before settling on your top choice.
Even if you are currently unbanked, know that you still have options that suit your needs. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. Citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.
5-Year CD FAQs
What is the highest interest rate on a 5-year CD?
The highest interest rate on a 5-year CD is 4.00% APY from Synchrony and several other financial institutions.
What are 5-year CDs paying now?
The most competitive 5-year CDs pay between 3.90% APY to 4.00% 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 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.
ALos Read- Janet Jackson Claims Kamala Harris Is ‘Not Black,’ Predicts ‘Mayhem’ for 2024 Election
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.
