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 - January 16, 2022
5 Year CD National Average: 0.78% ?
| BANK | APY? | MIN? | ||
|---|---|---|---|---|
|
Restrictions |
1.30% | $1,000 | Learn 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. |
||||
|
Gunner | Dec 21, 2021 I can positively state that poor customer service is the reason why businesses sink. Pentagon Federal online media agent is limited and most times useless. The wait time on the telephone to be asked nam... |
||||
|
Restrictions |
1.21% | $5,000 | Learn More | |
|
AlH | Oct 26, 2021 Not the easiest process and you really need to think twice before joining a credit union to make a little more on your cash. For me it was worthwhile and Cathy was super helpful. |
||||
|
|
1.10% | $1,500 | Learn More | |
|
Ulysses | Nov 9, 2021 Quirky website and lousy rate, but this is where we are what you need to do to avoid the zero-point-zero-one. Read More |
||||
|
|
1.07% | $5,000 | Learn More | |
|
DaveJ | Jun 21, 2021 Bad experiences with this bank and maturing CD's. I wanted the funds returned to my external bank and not rolled over into another CD. After several phone calls, and messages sent through their secure mess... Read More |
||||
|
|
1.05% | $1,000 | Learn More | |
|
Cheryl | 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 |
||||
|
|
1.00% | $0 | Learn More | |
|
Kevin | Jan 3, 2022 Perfect credit and I was denied opening an account with NO explanation. Is this bank legitimate or some sort of scam? Read More |
||||
|
|
1.00% | $500 | Learn More | |
|
Michelle G | Jul 15, 2021 Marcus is the very best online banking experience that I have ever had. Read More |
||||
|
|
1.00% | $500 | Learn More | |
|
Johanna | Dec 16, 2021 This is the one. I've been a customer for many years. Never a problem. Great service. Rates are always consistently among the best. No need to constantly move. Read More |
||||
|
|
1.00% | $1,000 | Learn More | |
|
Jay | May 10, 2021 Dollar Savings Direct is as close as anything gets to a scam without being labeled a scam. CDs renewing below market rates at no notice. Savings rates going above market levels and then way below (again no... Read More |
||||
|
|
1.00% | $1,000 | Learn More | |
|
Emigrant is a game | 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 |
||||
|
|
1.00% | $2,000 | Learn More | |
|
Peter C2 | Jan 23, 2021 In terms of service, you cannot do anything online. On every other bank, you can message someone online and get a quick response. You need to call Synchrony and speak with someone in the Philippines. N... Read More |
||||
|
|
1.00% | $2,500 | Learn More | |
|
Pjamas | Sep 14, 2020 two thumbs up Read More |
||||
|
|
1.00% | $10,000 | Learn More | |
Early Withdrawal Penalty is 730 days interest. |
||||
|
TulsaGirl01 | 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 |
||||
|
|
0.95% | $1,000 | Learn More | |
Early Withdrawal Penalty is 360 days interest. |
||||
|
Jim Plew | 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... |
||||
|
Restrictions |
0.95% | $100,000 | Learn More | |
Early Withdrawal Penalty is the lesser of 365 days of interest or all interest earned. |
||||
|
David | Jul 16, 2021 David |
||||
|
|
0.90% | $1,000 | Learn More | |
|
opal@8 | Dec 13, 2019 yes good |
||||
|
|
0.90% | $1,000 | Learn More | |
|
Joy | Feb 28, 2021 ACH transfers limited to $3,000, unsecured website, emailing acct numbers, hours to reach customer service. Need not say more. |
||||
|
|
0.90% | $2,500 | Learn More | |
|
Regan Dave | Nov 13, 2021 Rate is not unattractive in this environment but I will wait until January or February and see where things are then. |
||||
|
|
0.80% | $0 | Learn More | |
|
GAM | Nov 8, 2021 As of 11/03/2021 online savings rate increased to 0.50% |
||||
|
|
0.80% | $2,500 | Learn More | |
|
j975 | Nov 6, 2021 Website agonizingly SLOOOOOWWW. Only 3 linked external accounts allowed. |
||||
|
|
0.80% | $25,000 | Learn More | |
|
JC | Nov 5, 2021 I opened an interest checking account with Ally after reading all the glowing comments online. My first experience with Ally was anything but glowing. The customer rep tried to charge me $15 for a debit ca... Read More |
||||
|
|
0.75% | $500 | Learn More | |
|
JaySN | Dec 6, 2021 Works fine, but I wish interest were credited monthly and not quarterly. |
||||
|
|
0.75% | $1,000 | Learn More | |
|
nonsense | May 21, 2021 avoid this Read More |
||||
|
|
0.60% | $1,000 |
Learn More
|
|
|
|
0.55% | $0 | Learn More | |
|
Rebecca01 | Aug 3, 2020 There is a lot to like about this account. American Express is a real organization and you are not playing with a bunch of amateurs like with a lot of these banks. However, they will be sure to lower the ... Read More |
||||
|
|
0.55% | $0 | Learn More | |
|
Jazzy in Georgia | Mar 25, 2021 Completely excessive number of customer service phone calls after setting up account. Well meaning, but over the top. |
||||
|
|
0.55% | $500 | Learn More | |
|
Savvysaver | 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... |
||||
|
|
0.55% | $10,000 | Learn More | |
Warning: Early withdrawal penalty is 2% of principal |
||||
|
carscoupons@comcast.net | Sep 6, 2019 Went to bank yesterday this is not a good rate. Needs to be updated. Read More |
||||
|
|
0.50% | $500 |
Learn More
|
|
Early Withdrawal Penalty is 180 days interest. |
||||
|
|
0.50% | $500 | Learn More | |
|
fdknef | Jul 9, 2021 "Vio" application process is defective, I used to work on bank security so truthfully responded. Requires documentation which I sent in at length and then got denied because of unknown reasons. Have excell... Read More |
||||
|
|
0.50% | $1,000 | Learn More | |
|
BeccaB-88 | Jul 21, 2020 Opened account a month ago. I've already seen the rate fall a couple of times, but have no other complaints. Easy process and a clear easy to use site (unlike Ally where I was before). Read More |
||||
|
|
0.50% | $25,000 | Learn More | |
|
SandyB | Aug 25, 2020 Bank is owned by a Florida bank and yet I wasn't able to open an account because I live in Florida. Go figure! Read More |
||||
|
Restrictions |
0.40% | $500 |
Learn More
|
|
|
|
0.40% | $1,000 | Learn More | |
|
Joe | Dec 5, 2020 I know rates are variable, at their discretion*, but in the time frame of 9 months their rates have dropped to 1/3 of what they were ! is that what some call a teaser rate in the beginning ??? Read More |
||||
|
|
0.30% | $750 | Learn More | |
Warning: Early Withdrawal Penalty is the greater of all credited interest or 90 days interest. |
||||
|
Jay Riesman | Apr 9, 2021 Unprofessional in every way imaginable. |
||||
|
Restrictions |
0.30% | $25,000 |
Learn More
|
|
|
|
0.25% | $2,500 | Learn More | |
|
dbestway@gmail.com | 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... |
||||
|
|
0.25% | $5,000 | Learn More | |
|
Jeff | Oct 28, 2021 The website is easy to use. The savings rates for an online bank are terrible. Read More |
||||
|
|
0.25% | $10,000 | Learn More | |
|
GAM | Dec 8, 2021 Marcus (GS) and Barclay high yield savings both 0.50%. Read More |
||||
|
Restrictions |
0.20% | $500 | Learn More | |
|
Run Away As Fast As You Can | 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... |
||||
|
|
0.20% | $1,000 | Learn More | |
|
Puffin | Dec 28, 2021 I made a deposit and issued a check which arrived and they bounced it although they claimed the deposit cleared which left us spending Christmas pennyless. We depended on that money to buy ourselves food ... Read More |
||||
|
|
0.15% | $1,000 | Learn More | |
|
CHow1975 | Nov 18, 2017 This is a decent account until you need to withdraw something and then it is hell on wheels. Read More |
||||
|
|
0.10% | $500 | Learn More | |
|
Mike | Jan 10, 2022 Opened for the higher rate. Somewhat tricky to get the account opened, and I am disappointed to learn that albeit a Massachusetts bank it does not do DIY so cannot deposit over 1/4 mil. |
||||
|
|
0.06% | $1,000 | Learn More | |
|
Azblondie007 | Feb 24, 2020 I had been with USAA for 20 years. Had my checking, savings, auto and renters insurance and 2 credit cards with them. I work in the service industry and make a good portion of my income in cash tips. For 4... Read More |
||||
| Bank Institution | Product Term | Interest Rate (APY) |
|---|---|---|
| Pentagon | 1-Year | 0.85% APY with $1,000 minimum |
| Live Oak Banking Company | 1-Year | 0.75% APY with $2,500 minimum |
| Colorado Federal Savings Bank | 1-Year | 0.73% APY with $5,000 minimum |
| Pentagon | 3-Year | 1.00% APY with $1,000 minimum |
| Popular Direct | 3-Year | 0.95% APY with $10,000 minimum |
| Colorado Federal Savings Bank | 3-Year | 0.92% APY with $5,000 minimum |
| Pentagon | 5-Year | 1.30% APY with $1,000 minimum |
| Connexus | 5-Year | 1.21% APY with $5,000 minimum |
| Comenity Direct | 5-Year | 1.10% APY with $1,500 minimum |
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.
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.
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.
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 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.
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.
