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 - February 2, 2023
5 Year CD National Average: 0.81% ?
| BANK | APY? | MIN? | ||
|---|---|---|---|---|
| Sponsored | Advertiser Disclosure | |||
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4.30% | $2,500 |
Learn More
on the Discover Bank website |
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Guaranteed returns. No account fees. Member FDIC. |
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4.55% | $10,000 | Learn More | |
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Early Withdrawal Penalty is 730 days interest. |
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frithe13th | Feb 1, 2023 I would give them 0 stars if possible. I've had over 10+ CDs and bank accounts at all different institutions and never have I encountered such difficulty just accessing my account online! Just the applicat... Read More |
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4.50% | $500 | Learn More | |
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rffleck | Jan 11, 2023 Applied online for CD Jan 2023. 2 days later still no contact. Called 45 min for rep. Rep said process takes 10-14 days no interest until funded. Read More |
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4.50% | $1,500 | Learn More | |
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Early withdrawal penalty is 365 days interest. |
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chanse | Dec 21, 2022 Easy to open, took maybe 15 minutes for a joint account. Easy to access, easy to transfer $ in and out. Don't know why the negative reviewers experiences were so different, but maybe it's not the bank???... Read More |
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4.39% | $1,000 | Learn More | |
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Early Withdrawal Penalty is 360 days interest. |
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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... |
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4.36% | $500 | Learn More | |
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Richard | Jul 1, 2022 Very easy opening process and wonderful staff. |
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4.35% | $5,000 | Learn More | |
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Early Withdrawal Penalty is 6 Months' Interest. |
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jp2 | 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 |
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4.35% | $25,000 | Learn More | |
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AllyAccountOwner | Jan 7, 2023 After being a customer for 12 plus years, I attempted to open and Estate account. Ally declined my application saying they could not verify me even though I am a long time customer with six figures in a... Read More |
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Restrictions |
4.32% | $500 | Learn More | |
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member | 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... |
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4.30% | $2,500 |
Learn More
on the Discover Bank website |
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Guaranteed returns. No account fees. Member FDIC. |
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4.30% | $2,000 | Learn More | |
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jp76 | 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 |
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4.25% | $0 | Learn More | |
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LenaL | 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... |
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4.25% | $2,500 | Learn More | |
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Terri G | Nov 30, 2022 Sallie Mae managed to lose our $500,000 account and all the goodwill that had been built over 10 years plus as customers in one simple phone call. Their CSR began screaming at me when I inquired about a pr... |
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Restrictions |
4.25% | $100,000 | Learn More | |
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Early Withdrawal Penalty is the lesser of 365 days of interest or all interest earned. |
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donbilla | Jan 28, 2023 Wake up guys they now have a special that is special Check it out! |
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4.22% | $100,000 | Learn More | |
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Early withdrawal penalty is 18 months interest. |
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Fritz | 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! |
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4.10% | $0 | Learn More | |
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Capital Offense | Jan 29, 2023 As another person said, I just noticed that hundreds of thousands of our savings is stuck at .3% even though it has gone up to 3% and now 3.3% advertised everywhere. I assumed that since we had a variable ... Read More |
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4.10% | $500 | Learn More | |
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overdrawn | 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... |
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Restrictions |
4.00% | $500 |
Learn More
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Restrictions |
3.90% | $1,000 | Learn More | |
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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. |
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Michael | Nov 11, 2022 I have been with PenFed for a number of years, and have gotten good products. Employees have been helpful. However, beware of titling for accounts with trusts. You will not be able to distinguish betw... |
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3.85% | $25,000 | Learn More | |
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Warning: Early Withdrawal Penalty is 2% of the account balance. |
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Al | Apr 12, 2021 Frustrating. The initial application form is a breeze. Then the problems start. Many hoops to jump through. |
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3.80% | $500 | Learn More | |
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John WIlliamson | 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 |
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Restrictions |
3.76% | $5,000 | Learn More | |
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Josh Hinson | 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... |
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3.51% | $10,000 | Learn More | |
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Warning: Early withdrawal penalty is 2% of principal |
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carscoupons@comcast.net | Sep 6, 2019 Went to bank yesterday this is not a good rate. Needs to be updated. Read More |
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3.45% | $1,000 | Learn More | |
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TRU | Jan 9, 2023 TIAA stole money from university professors and staff and mismanaged assets so badly that a generation of people in academia were denied a comfortable retirement. Read More |
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3.45% | $5,000 | Learn More | |
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Dr. Bill N | Jan 18, 2023 The website is constantly down. I'll move all my accounts to a less recognized name with a better rate as that gives me fewer surprises like this. Read More |
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3.00% | $500 | Learn More | |
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HappyPrimeAllianceCustomer | 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... |
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3.00% | $1,000 | Learn More | |
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george | Dec 21, 2022 Warning, Dollar Savings Direct, My savings direct both play game, interest rate are good, but once you deposit its very difficult to get money out(withdraw), think twice before you put money in,you also lo... Read More |
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2.90% | $0 | Learn More | |
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Chris | 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 |
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2.84% | $1,000 | Learn More | |
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Yat 1965 | 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 |
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2.75% | $500 | Learn More | |
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John | Jan 31, 2023 Worked with Midfirst/Vio for years. Never a problem Read More |
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2.60% | $0 | Learn More | |
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BK15328 | 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 |
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2.58% | $1,000 |
Learn More
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2.50% | $25,000 | Learn More | |
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james | 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 |
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2.27% | $1,000 | Learn More | |
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Early Withdrawal Penalty is all interest earned. |
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Jeffinnh | Mar 30, 2021 These guys are the best local bank. Very responsive. |
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2.00% | $1,000 | Learn More | |
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New applicant23 | Jan 7, 2023 They said would notify me in 2 business days about my savings application which had nothing wrong. 5 business days now and no response was given, not even an email. Read More |
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2.00% | $1,000 |
Learn More
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Restrictions |
1.00% | $1,000 | Learn More | |
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tonaroof | Jan 24, 2020 This rate is not accurate as it is 2.25% |
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0.90% | $1,000 | Learn More | |
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opal@8 | Dec 13, 2019 yes good |
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Restrictions |
0.75% | $500 |
Learn More
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0.75% | $1,000 | Learn More | |
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nonsense | May 21, 2021 avoid this Read More |
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0.75% | $5,000 |
Learn More
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0.60% | $1,000 |
Learn More
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0.55% | $0 | Learn More | |
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Thomas DeMauro | Aug 28, 2022 Rates are totally uncompetitive now. |
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0.55% | $500 | Learn More | |
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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... |
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0.50% | $500 |
Learn More
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Early Withdrawal Penalty is 180 days interest. |
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0.50% | $1,000 | Learn More | |
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RTN1949 | 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 |
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Restrictions |
0.40% | $500 |
Learn More
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Restrictions |
0.30% | $25,000 |
Learn More
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0.25% | $2,500 | Learn More | |
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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... |
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0.25% | $10,000 | Learn More | |
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UtahJazz1 | 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 |
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Restrictions |
0.20% | $500 | Learn More | |
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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... |
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0.20% | $1,000 | Learn More | |
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JR48 | 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 |
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0.06% | $1,000 | Learn More | |
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RYAN S | 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 |
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| Bank Institution | Product Term | Interest Rate (APY) |
|---|---|---|
| Ivy Bank, a division of Cambridge Savings Bank | 1-Year | 4.85% APY with $1,000 minimum |
| Connexus | 1-Year | 4.76% APY with $5,000 minimum |
| Popular Direct | 1-Year | 4.75% APY with $10,000 minimum |
| Popular Direct | 3-Year | 4.60% APY with $10,000 minimum |
| Bread Savings, a division of Comenity Capital Bank | 3-Year | 4.50% APY with $1,500 minimum |
| First Internet Bank of Indiana | 3-Year | 4.44% APY with $1,000 minimum |
| Popular Direct | 5-Year | 4.55% APY with $10,000 minimum |
| Bread Savings, a division of Comenity Capital Bank | 5-Year | 4.50% APY with $1,500 minimum |
| First Internet Bank of Indiana | 5-Year | 4.39% APY with $1,000 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.
