Best 5 Year CD Rates

Five-year CDs can make for an excellent investment option. Today’s competition among banks and credit unions has driven interest rate offers up, making it quite lucrative to get a CD right now.

Most 5-year CDs will offer higher rates than your usual online savings account or even a high-yield savings account, so it’s definitely worth checking out what’s available.

Which Bank has the Highest 5-Year CD Rates?

CD rates vary depending on several factors, including:

  • Term
  • Current interest rates
  • Deposit amount
  • Your financial institution

Typically, credit unions and online banks are a great start if you are looking for the highest paying CD rates. Below is an up-to-date list of today’s best 5 year CDs, plus our current recommendations.

Best 5-Year CD Rates

Here are the best 5 Year CD rates on offer today.

Bank APY Min Deposit
GTE Financial Credit Union4.54% APY$500
Fidelity Investments4.50% APY$1,000
Barclays Bank4.50% APY$0
CFG Community Bank4.50% APY$500
Crescent Bank & Trust4.50% APY$1,000
First Internet Bank4.49% APY$1,000
Alliant Credit Union4.35% APY$1,000
Delta Community Credit Union4.35% APY$1,000
Quontic Bank4.30% APY$500
Bread Financial4.25% APY$1,500

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Top Banks & Credit Unions for 5 Year CDs

If you are shopping for a 5-year CD, these financial institutions frequently have some of the highest CD rates on offer.


With a $500 minimum deposit requirement, Quontic’s 5-year CD has one of the highest annual percentage yields on offer.

Quontic CDs are also available in 6-month, 1-year, 2-year, or 3-year terms, but the longer 5-year CD  term earns the highest APY.

Remember that since there’s an early withdrawal penalty if you take money out early, a CD account is only a good option if you have money on hand that you won’t need for the duration of the term.

Connexus Credit Union

Connexus Credit Union is located in several different states across the US. They share branches and ATMs with CO-OP and Money Pass, so you’ll have access to more than 6,000 branches and over 54,000 fee-free ATMs. You can sign up online through their website within minutes.

There is a minimum deposit of $5,000 to open a CD with Connexus. The shortest term available is one full year and the longest CD term available is 5 years.


While Discover Bank, member FDIC, is best-known for credit cards, they’re also an online bank with a range of financial products including CDs.

Discover Bank CDs start at 3 months. The longest term available is for 10 years or 120 months, but it typically won’t net you more than their 5 year option.

There is a minimum opening deposit requirement of $2,500. The account has no fees, but if you need to withdraw your money before the term expires, you will have to pay a penalty.

The bank also gives you the option to set up a CD ladder where you open multiple CDs with different term lengths. This can help you better manage liquidity and interest rate risks.

Ally Bank

Ally Bank is an online bank that offers a range of products and services, including CDs. They’ve been operating since 1919 and have over 8.5 million customers and some 9,500 employees.

Ally Bank compounds the interest daily so that you make the highest return possible on what you deposit. If you renew your CD, you also get a bonus APY, which is a ‘bonus’ percentage on top of their advertised rates.

High Yield Certificate of Deposit terms range from 3 months to 5 years, with no minimum deposit requirement.

  • APY: 4.80% APY
  • Term: 18 Month
  • Minimum Deposit: $0
  • Learn More: Ally Bank Review

Bread Financial (formerly Comenity Direct)

Bread Financial offers CD accounts that can be opened easily online. There is a $1,500 minimum opening balance with terms ranging from 1 year to 5 years.

While interest is compounded daily, it gets paid out once a month. There are no monthly fees, but there is an early withdrawal penalty.

Once the CD reaches maturity, it will auto-renew. This means you can withdraw without incurring fees once the term is up, but you’ll need to act fast. The grace period is only 10 days.

How Do 5-Year CD Rates Work?

Interest rates vary by bank or credit union, by term length, and by type of CD. The longer the term length, the higher the interest you will earn.

While some banks offer a flat rate that’s the same across all terms, most have a tiered system. This means that a long-term CD will enjoy a higher interest rate than a short-term CD.

A 5 year CD will also earn you more money compared to shorter terms, due to the compounding effect of APY.

Keep in mind that many CDs also have a minimum deposit requirement to get the highest rates.

Pros & Cons of 5 Year CDs

Five year CDs are a great savings vehicle that can help you safely reach your financial goals. There are tons of financial products out there, but it would be difficult to find the same risk to reward ratio as a long-term CD.

For example, a 10,000 5-year CD would earn over 1,500 at a rate of 3%. And as you can see above, there are currently even higher rates available.

Of course, there are some downsides too.

CDs are not very liquid – a depositor can’t simply cash out whenever they need the money without taking a hit. This means that you need to plan well in advance and consider that money as out of the equation for the CD term’s duration.

If you’re a little worried about accessing your funds, go for options like a six-month or a one-year CD.

Frequently Asked Questions

Who has the highest paying 5 year CD right now?

CD rates vary depending on several factors, but usually, credit unions and online banks are a great start if you are looking for the highest rates. Our list of 5 year CD rates stays up to date to give an idea of what’s currently available.

What are some alternatives to a 5 year CD?

If 5 years sounds like a long time, shorter-term CD options like a six-month or a one-year CD may be a better alternative for those who want access to their money sooner. High-yield savings accounts also offer you the ability to grow your savings at higher interest rates.