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Online CD Rates 2024 – 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 - March 2, 2024

5 Year CD National Average: 0.91% ?

Advertiser Disclosure
BANK APY? MIN?

Early Withdrawal Penalty is 360 days interest.

| Jan 30, 2024

Have an IRA rollover, they don't take IRAs any longer.

Early Withdrawal Penalty is 180 days interest.

| Mar 2, 2024

I opened a CD here. They withdrew the money and the account didn't show up for days. In the meantime, they lowered the rate. I called to be sure that I got the higher rate and the CSR said "you'll have ... Read More

| Nov 21, 2023

A real pain in the *** process to try and get approved! They were unable to match my drivers license photo with my live image after several times trying! Went to limelight bank instead and got approved in ...

Early Withdrawal Penalty is 730 days interest.

| Dec 18, 2023

I submitted a CD application 18 months 5.50 APY over a week ago and my application was declined no reason was given, I have the funds in another bank for transfer, credit score over 800. I think the reason... Read More

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

| Dec 14, 2022

Agree with Jaben to stay away from docfcu. They don't appreciate loyal members and easily turn down any requests after a delayed response. I have closed my accounts and moved my funds to better institutio...

| May 21, 2021

avoid this Read More

| Jul 1, 2022

Very easy opening process and wonderful staff.

| Mar 17, 2023

STAY AWAY ! They closed my accounts with no warning. After multiple successful direct deposits and mobile checks deposits, they claimed one of the three checks I deposited a few days ago was fake. No...

| Jan 2, 2024

Like others, I've been with Capital One and its predecessor ING Direct since 2007. I've also been getting cheap bank rates on my savings account and didn't realize that there was something better, although... Read More

Early withdrawal penalty is 365 days interest.

| Aug 13, 2023

Yup Bread has 5k daily and 30k monthly limit on ach transfers. It's low but there are other banks who have similar ach limits if not lower like Valley Direct Bank and BMO Alto. The part that bothers me i... Read More

| Feb 15, 2024

best bank on the list but no longer the most competitive Read More

| Sep 30, 2023

CFG overs very competitive Interest rates on their High Yield Savings account. I did everything ONLINE and have not had any issues with their service. Read More

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

| Jul 3, 2023

A 2% early withdrawal fee on a 1-year CD is almost equally insane as a 270 day one.

| Oct 23, 2023

Synchrony Bank recently closed 3 of my accounts with them and this decision was completely unwarranted. I had two Guitar Center cards and one Levin Furniture card. I found out about this through a push not... Read More

Early Withdrawal Penalty is 90 days interest.

| May 6, 2023

Fully functional bank account that would be great for my needs, but the quarterly interest payment thing is a real nuisance. I wish they would change it. It isn't market.

Signature Federal Credit Union
Restrictions
4.00% $500 Learn More

Early Withdrawal Penalty is 6 months interest.

| Jun 8, 2016

When is your next shred date @Ramtown?

| Jul 6, 2023

This is an example of a bad bank. Their online process for purchasing a CD is horrible. You fill it out and it rejects it after all of your private information is disclosed. They there customer service is ... Read More

Early withdrawal penalty is one-fourth the amount of interest that would have been earned had CD been held to maturity.

| Nov 12, 2023

This was terrible as Everbank. Then it was terrible as TIAA. Now it is terrible as Everbank again. Not sure where they are going with the branding, but still terrible. (Bestcashcow's system is forcing ... Read More

| 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

| Dec 25, 2023

I joined in PENFED in Spring Of 2023 after 15 yrs of belonging to one of the banking giants. I found my accounts dwindling fast unexplained decreases. I decided to close the account but had to return a mer...

| Aug 2, 2023

Sallie mae is just a horrible institution. We've done business with them before and swore on the holy bible not to go near there again, but a 18 mos cd at 5.55% brought us back.

| Nov 12, 2022

I was shopping for deposit rates in August, and NerdWallet, a site I had previously trusted, had it on their list. I was unaware they took deposits. They are the only bank that ever duplicated a transactio...

Home Savings Bank
4.00% $5,000 Learn More
Umbrella Bank
3.95% $10,000 Learn More

| Aug 13, 2023

Been a customer for a couple of years now with interesting checking, been a happy customer. They give you a $10 reimbursement on atm fees per statement cycle. They pay you to leave your money there curre... Read More

Early Withdrawal Penalty is 180 days interest.

| 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...

| Jan 10, 2024

AVOID at all costs. We read the addendum to the final page of the LENGTHY account agreement mailed to us after completing the online portion. Guess what? It gives this sweet seeming Discover Bank access to... Read More

| Feb 3, 2023

So I financed a camper through this group. The plumbing water sewer black and gray tank fell to the ground 30 days after purchase. It was being “ fixed “ for almost 5 months the dealer assured me I wou...

Warning: Early withdrawal penalty is 2% of principal

| Dec 30, 2018

Garden14 Read More

| Nov 18, 2023

bad bank hold your deposit over months without credit in your account, no interest, they don’t want pay you interest , they want your money with 0% interest. Read More

| Mar 21, 2023

Parent seems to be owned by a large Chilean bank. Not saying this is good or bad, but it is complication, especially in the current environment. Read More

| Nov 8, 2023

I see nothing exciting about AmEx Bank. Sign on is a hassle and the rates are adequate. Multiple accounts are not summarized. To cancel maturing CDs require phoning in or snail mail. Above average serv... Read More

| Apr 30, 2019

No issues. I feel confident using them. Read More

| Apr 25, 2023

with all of these online bank, including the well known ones, delaying transfers forever in order to fund these high rates, this one still executes inbound and outbound transfers immediately. Read More

| Jun 13, 2023

I'll steer clear of Dollar Savings Direct and My Savings Direct until they guarantee users at both online divisions their best rates. Banks have the right to segment their customers yes, but these games w... Read More

Forbright Bank
3.00% $1,000 Learn More

| Dec 21, 2023

Very easy to setup 6 month 5.35% CD from cornerstone account Read More

Ohio Catholic Fcu Federal Credit Union
Restrictions
2.65% $500 Learn More

| Jul 9, 2023

Looks like indexed savings is now at 5.31%. Down, but it still beats anything else here. Why aren't you highlighting this for your readers? Read More

| Jan 24, 2020

This rate is not accurate as it is 2.25%

Early Withdrawal Penalty is all interest earned.

| Mar 30, 2021

These guys are the best local bank. Very responsive.

| Nov 28, 2022

While USAA was at one point a great option for all your banking needs, the service has deteriorated so much that I'm currently in the process of changing banks after more than 2 decades. The final straw w... Read More

Norwood Bank
1.75% $1,000 Learn More
Idaho Central Credit Union
Restrictions
1.10% $500 Learn More

| Jan 27, 2023

The worst bank I have ever had Read More

| Aug 28, 2022

Rates are totally uncompetitive now.

Early Withdrawal Penalty is 180 days interest.

| Feb 25, 2023

I have been working for this company more than 5 years. I would not recommend any investment with First Citizens Bank. They are the worst performer on the market based on the customer and employee reviews... Read More

| Feb 25, 2023

HORRIBLE SERVICE. My son's campus checking account was hacked and over $9000 was stolen. Fraud department was impossible to reach and we waited on phone several days for over 2 hours at a time. They too...

Edu Federal Credit Union
Restrictions
0.40% $500 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

| Dec 21, 2022

Stay away from this bait and switch bank that uses teaser rates. They lowered my interest rate twice in the first 2 months of opening my account. They said they had the right to change their rate at any ti... Read More

OneWest Bank, a division of First-Citizens Bank and Trust
0.15% $500 Learn 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 - March 2024

Bank Institution Product Term Interest Rate (APY)
TotalDirect, a division of City National Bank of Florida 1-Year 5.50% APY with $25,000 minimum
Bask Bank 1-Year 5.40% APY with $1,000 minimum
Modern Bank, National Association 1-Year 5.38% APY with $10,000 minimum
Banesco USA 3-Year 5.10% APY with $1,000 minimum
Dollar Savings Direct, a division of Emigrant Bank 3-Year 5.00% APY with $1,000 minimum
First Internet Bank of Indiana 3-Year 4.76% APY with $1,000 minimum
First Internet Bank of Indiana 5-Year 4.61% APY with $1,000 minimum
BMO Alto, a division of Bank of Montreal Harris 5-Year 4.60% APY with no minimum
Seattle Bank 5-Year 4.50% APY with $1,000 minimum

PRODUCT INFORMATION

Five Year CDs - Online Banks 2024

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.