Today’s interest rates are at historic highs, but there’s no guarantee how long these rates will last, especially as inflation slows. You can keep the interest flowing for (quite literally) years to come with a five-year certificate of deposit (CD).
While five years might seem like a long time, these longer-term CDs could be a terrific fit for anyone wanting to build a CD ladder or saving for a goal like a housing down payment. This week, rates on 5-year CDs top out at 4.75%, and we rated almost 50 CDs to find you the best.
Current 5-year CD rates for our top picks*
*APYs last updated on January 3, 2024, and are subject to change. Read our complete methodology here.
The 10 best 5-year CD rates
1. BMO Alto—4.75%
| Key numbers | |
| Minimum deposit | $0 |
| 5-year APY | 4.75% |
| Early withdrawal penalty | 180 days’ interest |
Why we picked it
BMO Alto is an online banking division of BMO Financial, one of the largest banks in the U.S. Currently, BMO Alto offers just two products: a high-yield savings account, and CDs ranging from six months to five years.
It was one of two banks on our list with no minimum opening deposit, making it a solid choice for savers who want to dip their toes into CDs for the first time. There’s also a modest early withdrawal penalty compared to other banks on this list.
BMO Alto has limited customer service options—you can only contact them via phone.
2. First National Bank of America—4.75%
| Key numbers | |
| Minimum deposit | $1,000 |
| 5-year APY | 4.75% |
| Early withdrawal penalty | 540 days’ of interest |
Why we picked it
Though FNBA’s minimum opening deposit requirement may be steep for some, FNBA provides one of the most generous APYs on our list, coming in at 4.75%.
The early withdrawal penalties on these CDs are pretty hefty, though, so if you opt for this CD, make sure you’re comfortable locking up your funds. Customers can also opt for a partial withdrawal of their funds—though this could mean missing out on some compound interest.
Customer service is available via phone or email.
3. First Internet Bank—4.59%
| Key numbers | |
| Minimum deposit | $1,000 |
| 5-year APY | 4.59% |
| Early withdrawal penalty | 360 days’ interest |
Why we picked it
First Internet Bank was established in 1999, operating online with headquarters in Indiana. The bank provides savings accounts, money market accounts, and CDs, among other products.
First Internet has a decent APY of 4.59%, and savers can access customer service in various ways, from phone to email to chat.
4. MYSB Direct—4.51%
| Key numbers | |
| Minimum deposit | $500 |
| 5-year APY | 4.51% |
| Early withdrawal penalty | the greater of 90 days’ interest or all accrued interest |
Why we picked it
MYSB Direct, or M.Y. Safra Bank, is headquartered in New York City and operates a single branch there. Its products include checking and savings accounts, mortgages, and more.
This bank offers a five-year CD with an impressive 4.51% APY. With a reasonable $500 minimum deposit, it provides an attractive investment opportunity.
6. Bread Savings—4.25%
| Key numbers | |
| Minimum deposit | $1,500 |
| 5-year APY | 4.25% |
| Early withdrawal penalty | 365 days simple interest |
Why we picked it
Bread Savings, formerly Comenity Direct Bank, is an online bank—part of Bread Financial—that offers CDs ranging from one to five years and a high-yield savings account. While you can’t visit a physical branch location, you can contact customer service via phone or messaging through the online banking portal.
Bread’s 5-year CD earned a spot on our list for boasting one of the highest APYs. However, investing can be a hurdle for some—it has the steepest minimum opening deposit requirement at $1,500.
5. Quontic Bank—4.30%
| Key numbers | |
| Minimum deposit | $500 |
| 5-year APY | 4.30% |
| Early withdrawal penalty | Two years’ interest |
Why we picked it
Quontic began as a community bank in New York City in 2009 and is now a digital bank with product offerings nationwide, including checking and savings accounts as well as mortgages.
Quontic’s five-year CD took a spot on our list for its 4.30% APY and modest minimum required deposit compared to other accounts on our list.
Even though you won’t be able to visit a physical location, you can get in touch with customer service in a variety of ways, through phone as well as audio and text chat.
6. Alliant Credit Union—4.35%
| Key numbers | |
| Minimum deposit | $1,000 |
| 5-year APY | 4.35% |
| Early withdrawal penalty | Number of days the certificate is open, up to 180 days’ interest |
Why we picked
Founded in 1935, Alliant Credit Union is a not-for-profit credit union offering accounts—such as savings accounts and share certificates—and lending products like auto loans and mortgages.
Even though Alliant offered one of the lower APYs on our list, it compensates with a range of customer service options, including email, chat, and phone. Additionally, the relatively low early withdrawal penalty means customers won’t have to sacrifice all their interest if they need access to their funds before the term ends.
7. Ally Bank—4.10%
| Key numbers | |
| Minimum deposit | $0 |
| 5-year APY | 4.10% |
| Early withdrawal penalty | Number of days the certificate is open, up to 180 days’ interest |
Why we picked
Ally Bank is an online-only bank that offers a wide range of products and services like checking and savings accounts, credit cards, personal loans, and robo-advisors.
Ally’s five-year CD rate currently sits at 4.10%, which is competitive but still the lowest on our list. So why did it make it on our list? Well, it has a $0 minimum deposit, which allows new savers to lock in a great rate for the long haul.
Bonus: Ally Bank offers customers 24/7 phone, chat, and email support.
8. Department of Commerce Federal Credit Union—4.34%
| Key numbers | |
| Minimum deposit | $500 |
| 5-year APY | 4.34% |
| Early withdrawal penalty | 180 days’ interest |
Why we picked it
Founded in 1932, The Department of Commerce Federal Credit Union (DOCFCU) is a not-for-profit financial institution with locations in D.C. and Maryland. Membership is available to anyone who lives, works, worships, or attends school in Washington, D.C., is affiliated with the Department of Commerce and its sub-agencies, or is a member of other groups like the American Credit Council (ACC).
Even though you’ll have to be a member to reap the benefits of DOCFCU’s CDs, membership could be worth it given the 4.34% APY on its 5-year CD.
If you need help opening an account, customer service is available via phone or email.
9. Crescent Bank—4.50%
| Key numbers | |
| Minimum deposit | $1,000 |
| 5-year APY | 4.50% |
| Early withdrawal penalty | 180 days’ interest |
Why we picked it
Founded in 1991 in New Orleans, Crescent Bank has a variety of products such as CDs, mortgages, and check and savings accounts. Not all of its banking products are available nationwide, but its CDs are.
Even though Crescent Bank has a higher minimum opening deposit, the return is substantial with a generous 4.50% APY.
While they have a few locations in Louisiana, assistance is available nationwide via phone call.
10. CFG Bank—4.25%
| Key numbers | |
| Minimum deposit | $500 |
| 5-year APY | 4.25% |
| Early withdrawal penalty | 180 days’ simple interest |
Why we picked it
CFG Bank is a Maryland-based bank that offers products to customers across the U.S., including checking accounts, money market accounts, and CDs. CFG’s five-year CD boasts an APY of 4.25%, but the downside of it is the $500 minimum deposit, which could make it a no-go for some savers.
What is a 5-year CD?
A five-year CD is essentially a savings account that ties up your money for five years (or 60 months) in exchange for a competitive APY. The catch: You agree not to withdraw your money until it reaches maturity. Otherwise, you’ll be forced to pay a penalty. CDs come with a wide range of term lengths, and five-year CDs tend to be the longest term length offered by financial institutions, although some banks and credit unions offer longer terms.
When your CD matures, you can choose whether to spend it or roll your funds over into a new CD or possibly a high-yield savings account.
Are CD rates going up?
The short answer is: It depends. The Fed raised the federal funds rate several times in 2022 and 2023, but it doesn’t expect to increase rates again and even anticipates reducing rates later in 2024. When the federal funds rate declines, borrowing becomes cheaper, and consumers are less likely to save as banks and credit unions raise reduce interest rateson their deposit accounts.
Best CD rates for other terms
Depending on your financial goals, a shorter or longer-term CD might better suit your needs. There are CDs that have durations that range from a month to a decade. With Curinos data, we curated a list of the highest APYs based on term length.
More CDs to consider:
Our methodology
The Fortune RecommendsTM team compared five-year certificates of deposit (CDs) from almost 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account regardless of where you live. We ranked the best five-year CDs in the following categories:
- Five-year term APY (65%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Minimum deposit requirement (30%): To open a CD at any financial institution, you may be required to deposit a minimum dollar amount.
- Customer service (5%): We ranked banks and credit unions with various customer service options—phone, email, and chat support—higher on our list. Phone support was ranked the most important by our team. : chat support, by phone, or even email; our team most highly rated phone support.
The best CDs offer APYs more than double the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages.
The APYs are subject to fluctuation, which could impact how much interest you earn. All the banks and credit unions on this list are insured by the FDIC and NCUA, respectively. If you terminate your CD before it matures, you’ll have to pay an early withdrawal penalty, which varies by bank.
