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Online CD Rates 2022 – 5-Year CDs

Five-Year Certificates of Deposit (CD) are generally the longest term CD that most banks will offer. They tend to offer the highest rates but require the longest commitment. Five-year CDs are especially popular in a declining interest rate environment as depositors can lock money in at the highest rate possible for the longest period of time. They are also popular with depositors who are willing to lock up money for five years in return for extra yield. Online banks often offer Five-Year CDs that are above the average national rate.

Highest Five-Year Online CD Rates - October 1, 2022

5 Year CD National Average: 0.80% ?

Advertiser Disclosure
BANK APY? MIN?

Early withdrawal penalty is 365 days interest.

| Sep 30, 2022

They locked my account for no reason. I spend more than 2 hours, trying 4 times to call their customer service (Sept. 26). The representative promised me to submit request to unlock my account right away b... Read More

| Jul 1, 2022

Very easy opening process and wonderful staff.

Warning: Early Withdrawal Penalty is 2% of the account balance.

| Apr 12, 2021

Frustrating. The initial application form is a breeze. Then the problems start. Many hoops to jump through.

| Oct 19, 2018

Terrible Bank. Terrible Service. I tried to put a ton of money into a cd there. They rejected my application. Took them 6 days to tell me my money was no good. WTF? WORST Service EVER!

| Sep 24, 2022

Was going to open a savings acct ----- after reading the reviews, NO WAY. Don't make it difficult for customers, (or potential customers), to do business with you. Read More

Early Withdrawal Penalty is 730 days interest.

| Apr 10, 2021

I opened an account a couple of years ago and had a dreadful experience. I saw two weeks ago that the rate was better than at Citizens so I closed that account for this one. I cannot access my money now or... Read More

| May 2, 2022

Barclays is the worst. Transfer speeds even worse than Synchrony now. Service is worse than anything. Save yourself the trouble of getting sucked into rates that are sometimes competitive and choose anythi...

| Jun 13, 2022

3 days for an ach is not market when most banks on this list do it instantly. even frigging rising bank. customer service is beyond dreadful. Read More

Department Of Commerce Federal Credit Union
Restrictions
3.46% $500 Learn More

| Sep 11, 2022

If I could leave a -10 star review I would do it in a. This is a classic example of a ridiculously unmanaged government program with zero oversight and zero sensibility. In April 2022 I applied for a st...

Early Withdrawal Penalty is 6 Months' Interest.

| Jul 1, 2022

not really an onllne bank. compare this interface that gives you no information with that of any other bank (I cannot even confirm the rate). cannot switch in and out of cds or np cds. just not an online b... Read More

| Aug 6, 2022

The idea that they aren't competing is wrong. They'll give you 1% more on your savings if you run around promoting their brand and get a friend to sign up. Great marketing scheme actually, since those so i... Read More

| Sep 14, 2020

two thumbs up Read More

| Jun 23, 2022

ING was better. They were bought by CapitalOne and ever since, my rates have steadily dropped. Now that rates in general have been rising for months, mine has been flat at 0.30%. No sign of them going up, ... Read More

| Sep 20, 2022

Prime Alliance Bank has a single branch (outside Salt Lake City) and does an excellent job with distance banking (we are based in Washington state). It stands out in several ways: (1) Interfacing with the...

| Jul 15, 2021

I finally closed my account. Was great back in the day as everbank but now it is a joke in every way. Read More

Early Withdrawal Penalty is the greater of: everything earned in the first 12 months or 30% of total dividends that would have been earned if held to maturity, but not to exceed total dividends paid.

| Aug 10, 2022

While they offered good rates, I got nothing but the runaround on membership. Twice submitted required forms in which they said were not clear enough, but only after I called them to see what the holdup w...

Early Withdrawal Penalty is 360 days interest.

| Apr 22, 2015

Hello, I am interested in a line of credit against my home. I have a high interest credit card that I want to move to this credit. I have a wells fargo mortgage which is only a few years old which I do no...

| Sep 1, 2022

updated review - The bank managed to finally provide the requested document listing the beneficiary after a number of calls. So will add a few stars. The website still needs some work to be more descript... Read More

| Sep 22, 2022

Super easy to join. Happy to receive 3.51% on a 12 month CD!

| Aug 16, 2022

ally is still the gold standard in online banking, but the rate needs to get more competitive and the wait to speak to someone on the phone is just ridiculous. Read More

| Sep 23, 2022

I know that the bank is supposedly FDIC insured but the entire soft money lending thing upon which this business is predicated is about to go go under so look out below!

| Aug 31, 2022

never had a problem moving money in/out. After trying a couple banks with higher rates but less service will be moving my money back here. Read More

Early Withdrawal Penalty is the lesser of 365 days of interest or all interest earned.

| Sep 30, 2022

I have been a customer for 34 years. But I have been dismayed by NFCUs slow responsiveness to be competitive in the market place with savings rates and to offer the best rates in the market. All I see is...

| Mar 19, 2022

Problem with ties to puppy mills. I closed a cct. https://www.americanbanker.com/news/tab-bank-dragged-into-seedy-world-of-puppy-mill-loans-by-fintech-partner

| Sep 27, 2022

has strange old rules for link external bank , takes more time and difficult for no check writing today, just want advised for their name and dont want you deposit money to their bank for 3% interest. Read More

| Aug 20, 2022

Great experience with Ivy Bank! They are constantly updating their rate to stay competitive. Since I've opened my account they've increased my rate 4 or 5 times. It's easy to apply and open and have had no... Read More

Seattle Bank
2.58% $1,000 Learn More

| Aug 26, 2022

Too slow to raise rates. Read More

| Sep 1, 2022

awful POS. Sucks. Bad. crappy. Read More

| Aug 31, 2022

you can view but you wont get in. application can't go through, they can't help even you called, Bank just make show they exit. Read More

Early Withdrawal Penalty is all interest earned.

| Mar 30, 2021

These guys are the best local bank. Very responsive.

| Sep 17, 2020

It is a complete game between MySavings, DollarSavings and Emigrant. Some days one has a competitive rate, the next day the rate on that one has dropped to zero and it is one of the other brands that has... Read More

Hingham Institution for Savings
2.00% $1,000 Learn More

| Jan 24, 2020

This rate is not accurate as it is 2.25%

| Dec 13, 2019

yes good

| May 21, 2021

avoid this Read More

Home Savings Bank
0.75% $5,000 Learn More
OneWest Bank, a division of First-Citizens Bank and Trust
0.60% $1,000 Learn More

Warning: Early withdrawal penalty is 2% of principal

| Sep 6, 2019

Went to bank yesterday this is not a good rate. Needs to be updated. Read More

| Aug 28, 2022

Rates are totally uncompetitive now.

| Jun 17, 2020

Confirmed - NOT an online bank! Emailed CFSB, response: Thanks for your email. Unfortunately, we do not open accounts online and we currently offer only account opening at our branches in New York. Thank Y...

Early Withdrawal Penalty is 180 days interest.

| Jun 2, 2022

I've been a customer since CIT emerged from the financial crisis as a real competitor in this space (14 years or so). Zero complaints about anything over this time ... until today. Now they are offering a... Read More

Edu Federal Credit Union
Restrictions
0.40% $500 Learn More
Ohio Catholic Fcu Federal Credit Union
Restrictions
0.30% $25,000 Learn More

| Aug 13, 2019

I filled out the application 10 days ago answering all questions and sent a file with a copy of my drivers license to Western Bank. I received an email saying that a banker would call me within one busines...

| Jun 10, 2022

This bank hasn't raised their rates! Maybe I was sleeping but I need to get out of here fast. Read More

| Aug 15, 2019

I applied for a jumbo CD account over two weeks ago. They asked me for more documentation than my mortgage company did and then they did a hard credit pull. They advertise fast and simple they are simply n...

| Sep 14, 2022

you need open new account once interest going up, keep in mind your savings account only go down never go up unless you open new account. Read More

| Aug 8, 2022

Left USAA after 30 years and never looked back. The rates were high and the claims problems were horrible once a major claim hit (my first and only one). Much happier since leaving USAA (and there rigid, u... Read More

All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

Summary: Today's Highest Online CD Rates - October 2022

Bank Institution Product Term Interest Rate (APY)
Rising Bank, a division of Midwest BankCentre 1-Year 3.70% APY with $1,000 minimum
Merrick Bank 1-Year 3.60% APY with $25,000 minimum
Connexus 1-Year 3.51% APY with $5,000 minimum
Rising Bank, a division of Midwest BankCentre 3-Year 3.85% APY with $1,000 minimum
Merrick Bank 3-Year 3.65% APY with $25,000 minimum
Connexus 3-Year 3.61% APY with $5,000 minimum
Bread Savings, a division of Comenity Capital Bank 5-Year 4.25% APY with $1,500 minimum
M.Y. Safra Bank 5-Year 3.75% APY with $500 minimum
KS StateBank 5-Year 3.70% APY with $100,000 minimum

PRODUCT INFORMATION

Five Year CDs - Online Banks 2022

Online banks offer many different CD terms of which the five year CD is generally the longest. Five year CDs provide the highest yield of the common CD terms but in return, savers must keep the money locked in the bank for an extended period of time. While individuals can withdraw the money (termed "breaking the CD") high penalties usually make this undesirable. At times, some five year CDs offer rates that are high enough to make up for the break penalty, and in these cases savers can earn a positive return even if they break the CD in the third or fourth year. These cases are rare though and savers are advised to plan to keep their money in the CD for the full term.

Safety

Five year CDs shown from banks on BestCashCow are all insured up to $250,000 per individual per institution by the FDIC. Deposits over that amount may be lost should there be a bank failure and savers are advised to keep their money within FDIC limits. The FDIC provides a tool to help you determine if your deposits are covered.

When to Invest in a Five Year CD

The biggest risk of a five year FDIC insured CD is that soon after depositing the money, interest rates and inflation will begin to rise. This can often happen in a rising rate environment and savers are advised to be way of investing in a five year CD if interest rates and inflation seem poised to go up. Unlike with bonds, the face value of a CD does not change with increases in interest rates, but no one wants to deposit money into a CD at 2.00% for five year only to have rates rise to 4.00% a year later.

In general, avoid investing in long-term CD at the start of economic recoveries following a recession.

The time to invest in five year CDs is when the economy is doing well and interest rates are high or if the economy seems to be entering a period of slower growth, or a recession. The post 2008 financial crisis period would have been a perfect time to lock in a five year CD rate.

Because it is very difficult to predict the start of a recession or the beginning of a recovery, some individuals prefer to create a CD ladder and five year CDs are an important part of a laddering strategy.

Interest

Five year CDs from online banks pay rates that are well above one year CDs and are comparable to five year CDs from branch banks. Five year CDs are the one term where the online banks do not pay much above online banks.

Opening a CD from an Online Bank

Opening a CD from an online bank has become easier over the past five years. Today, most online banks have an end-to-end online process that takes all depositor information. Savers opening an account should be comfortable providing their social security information online. Once the account has been opened, the rate is locked. Most online banks have an electronic funding mechanism in which an individual can transfer funds using an ACH transaction from their main checking account. Banks also allow funding to be done via check, wire, or credit card.

ADVANTAGES AND DISADVANTAGES

Advantages

  • 5 year CDs provide a fixed rate for the term of the CD.
  • The rate is higher than a savings account or a 1 year CD to compensate for the longer term.
  • CDs opened online can be done from the comfort of a saver's living room.

Disadvantages

  • The money is locked away for five years unless the CD is broken (for which significant penalties may apply).
  • In a rising rate environment, inflation will reduce the value of the money in the CD over time.
  • The funding process for an online CD can sometimes take 1- 5 business days and often requires some type of validation process.

All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, please visit the FDIC website.

To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.