The best 5-year CDs are paying depositors over 4% APYs, but you better grab this superior rate while you can. Interest rates may be near two-decade highs, but they will likely start to decline now that inflation has cooled off. You can preserve a great CD rate for years to come by opting for a five-year certificate of deposit.
While five years might seem like a long time, these certificates could be a terrific fit for someone wanting to build a CD ladder or saving for a goal like a home down payment. This week, the Fortune RecommendsTM team examined almost 50 certificates of deposit to find you the best rates available on the market today.
Best 5-year CD rates of June 12, 2024
*APYs are current as of June 12, 2024 and are subject to change. Read our complete methodology here.
The best 5-year CD rates: Our editor’s top picks
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The 10 best 5-year CD rates
First Internet Bank
| 5-year APY | 4.50% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 360 days’ interest |
Why we picked it
First Internet netted the top spot on our list because it had the highest APY, clocking in at a stellar 4.50%. You’ll need to invest at least $1,000 to score this rate, but a higher initial investment means you’ll earn more interest in the long run.
If you ever need help with your account, you can contact customer service via phone, email, or chat.
Quontic Bank
| 5-year APY | 4.30% |
| Minimum Deposit | $500 |
| Early withdrawal penalty | Two years’ interest |
Why we picked it
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, including phone, audio and text chat.
First National Bank of America
| 5-year APY | 4.50% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | 540 days’ interest |
Why we picked it
Though First National Bank of America’s minimum opening deposit requirement may be steep for some, it provides one of the most generous APYs on our list, coming in at 4.50%.
The early withdrawal penalties on FNBA’s CDs are pretty hefty, though, so if you opt for this CD, make sure you’re comfortable locking up your funds. Customers can opt for a partial withdrawal of their funds. This, however, could mean incurring an early withdrawal penalty and missing out on some compound interest.
Customer service is available via phone or online form.
Ally Bank
| 5-year APY | 3.90% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | Number of days the certificate is open, up to 180 days’ interest |
Why we picked it
Ally’s five-year CD rate currently sits at 3.90%, which is competitive but is still the lowest APY on our list. So why is it still in our top 10? It has a $0minimum 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.
MYSB Direct
| 5-year APY | 4.31 |
| Minimum Deposit | $500 |
| Early withdrawal penalty | The greater of 90 days’ interest or all accrued interest |
Why we picked
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 4.31% APY. With a reasonable $500 minimum deposit, there’s not a high barrier to entry to score a solid return.
BMO Alto
| 5-year APY | 4.80% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | 180 days’ interest |
Why we picked it
BMO Alto was one of three 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.
However, if customer service is a priority for you, it’s like not the best choice—you can only contact them via phone.
Alliant Credit Union
| 5-year APY | 4.00% |
| Minimum Deposit | $1,000 |
| Early withdrawal penalty | Number of days the certificate is open, up to 180 days’ interest |
Why we picked it
Even though Alliant offers a more modest APY, 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.
Capital One 360
| 5-year APY | 3.90% |
| Minimum Deposit | $0 |
| Early withdrawal penalty | 6 months of interest |
Why we picked it
With Capital One 360 CDs, there’s no minimum opening deposit, so you can score a solid APY regardless of how much you have to save. The 5-year CD offers a decent APY of 3.90%. Plus, if you choose to tap your money early, you’ll only give up six months of interest, which is a modest penalty compared to some other banks on our list.
Why we picked it
Though Marcus’ longer term CDs currently offer lower rates than their short-term ones, you can earn an APY of 4% or higher on CDs with term lengths of 3 years or more. Plus, you’ll only have to hand over 180 days’ worth of interest for accessing your cash early.
Prime Alliance Bank
| Key numbers | |
|---|---|
| 5-year APY | 4.00% |
| Minimum opening deposit | $500 |
| Early withdrawal penalty | 90 days’ interest |
Why we picked it
With a Prime Alliance CD, you only have to invest $500 to receive a stellar rate. Their 5-year CD boasts a 4.00% APY, and if you think you might tap your money before the CD’s term is up, you’ll only have to pay back 90 days’ worth of interest.
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 rates on 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 Recommends™ team uses third-party data from industry leader Curinos, updated daily, to determine the best possible CD rates available for consumers right now. This is the most significant determining factor when deciding which financial corporation to feature in our best CD rates articles.
We ranked the best five-year CDs in the following categories:
- Five-year term APY (60%): 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 (10%): 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.
Learn more about our banking methodology.
