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 21, 2021
5 Year CD National Average: 0.80% ?
| BANK | APY? | Vs. Nat'l Av. |
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1.15% | 1.44x | $1,000 | Learn More |
Minimum deposit to open is $1,000.
Terms from 6 months to 5 years
Free online banking to view balances
Available interest payment options
Penalty for early withdrawal may apply |
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Kindr468 | Jan 20, 2021 Was rejected for acct from NYC. |
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1.11% | 1.39x | $175,000 | Learn More |
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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 |
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1.10% | 1.38x | $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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Restrictions |
1.05% | 1.32x | $100,000 | Learn More |
Early Withdrawal Penalty is the lesser of 365 days of interest or all interest earned. |
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Savvysaver | Jun 25, 2020 Sorry, not 1.30% APY. 1.05%, 1.10% for balances above $100k |
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Restrictions |
1.01% | 1.27x | $5,000 | Learn More |
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THOMAS STEPHENS | May 02, 2019 VERY CONFUSING WEB SITE AND DIRECTIONS |
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0.96% | 1.20x | $1,000 | Learn More |
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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0.95% | 1.19x | $25,000 | Learn More |
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Savvysaver | Jun 25, 2020 Ok, GFB's site a bit more compliant today. Unfortunately the rate posted here is not current. 1.05% and look at that minimum! Read More |
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Restrictions |
0.90% | 1.13x | $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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0.90% | 1.13x | $1,500 | Learn More |
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EJ24 | Jan 14, 2021 Easiest account set-up process ever. Read More |
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0.85% | 1.07x | $1,000 | Learn More |
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VP Michael Penis | Oct 24, 2020 Avoid any bank that lowers its savings rate from 0.90% to 0.65% without any notice to customers. just avoid it. |
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0.85% | 1.07x | $25,000 | Learn More |
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EduardoC | Dec 12, 2020 "keeping their savings rate competitive" - they aren't. Read More |
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0.82% | 1.03x | $500 | Learn More |
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Jenn | Jan 13, 2021 Little rate drops suck! Read More |
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0.80% | 1.00x | $2,000 | Learn More |
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Del | Oct 03, 2020 I cannot overstate how incompetent Synchrony is. Even though I called multiple times before my CD was coming due to indicate that I didn't want it to autorenew, they autorenewed it. This could only have b... Read More |
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0.80% | 1.00x | $5,000 | Learn More |
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CD Matured | Dec 10, 2019 My CD matured and they sent the money back. I am not getting a new CD now since rates are too low. I just wanted to say that the people were absolutely wonderful to deal with. Read More |
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0.80% | 1.00x | $10,000 | Learn More |
Early Withdrawal Penalty is 730 days interest. |
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wabuf | Dec 03, 2019 Awful bank, offer you a high savings rate, then drop Ong the rate so rapidly. Read More |
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0.75% | 0.94x | $500 | Learn More |
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Stu | Apr 17, 2020 I have had a CD and passbook for a year or so and have had decent enough service and return. Can't complain. |
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Restrictions |
0.75% | 0.94x | $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. |
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LizaBBBB | Sep 06, 2020 Yes, Pentagon had good rate initially, but it disappeared at renewal. We have top credit score (835). |
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0.75% | 0.94x | $2,500 | Learn More |
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opal@8 | Dec 13, 2019 yes good |
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0.70% | 0.88x | $1,000 | Learn More |
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TrentR | Sep 30, 2020 Website hasn't been working for over a week now. Just great how they manage to go down as rates start to fall. :) I am so very done with this nonsense. Read More |
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0.70% | 0.88x | $1,000 | Learn More |
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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 |
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0.70% | 0.88x | $2,500 | Learn More |
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Summit Girl | Sep 03, 2020 This is the best bank on the list. Great service, competitive rates, no problems. |
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0.65% | 0.82x | $1,000 | Learn More |
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John t. | Jul 24, 2020 Went to renew a cd at branch in Jacksonville Fl , on main street, they said I would have to keep driving around building , if any cars came in behind me. They have 2 drive throughs and wouldn't open other... Read More |
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0.60% | 0.75x | $500 | Learn More |
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Deadwood | Jan 15, 2021 Marcus really doesn't disappoint. Great customer service. I could be angry about the rate but look at this other brands. Read More |
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0.60% | 0.75x | $1,000 |
Learn More
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0.60% | 0.75x | $2,500 | Learn More |
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Pjamas | Sep 14, 2020 two thumbs up Read More |
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0.60% | 0.75x | $2,500 | Learn More |
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EBHYT | Aug 04, 2020 Sallie Mae is going to absolutely be the right bank for you if you enjoy calling during normal business hours and speaking with a automated voice response system that gives you no information and refuses t... |
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0.60% | 0.75x | $10,000 | Learn More |
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Jeff | Dec 26, 2018 I think it is 1% on 1-year CDs and 2% on anything between 1 and 4 years. Not great, but not the worst I have seen. Read More |
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Restrictions |
0.60% | 0.75x | $100,000 |
Learn More
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0.55% | 0.69x | $0 | Learn More |
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Rebecca01 | Aug 03, 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 |
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Restrictions |
0.55% | 0.69x | $25,000 |
Learn More
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0.50% | 0.63x | $500 |
Learn More
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Early Withdrawal Penalty is 180 days interest. |
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0.50% | 0.63x | $500 | Learn More |
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new name for a dreadful bank | Dec 13, 2016 This was formerly First Trade Union bank. Use Ally, Barclays, Synchrony or some bank that provides a certain level of service. |
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0.50% | 0.63x | $500 | Learn More |
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Chenkin1 | Jan 05, 2021 AVOID! Sneakers play games and take your money in fees and you'll end up earning much much less than Marcus or Ally. Read More |
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Restrictions |
0.50% | 0.63x | $500 |
Learn More
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0.50% | 0.63x | $1,000 | Learn More |
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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 |
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0.50% | 0.63x | $25,000 | Learn More |
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Julia N | Jan 03, 2021 This is the worst online banking I have seen. Without any warning they restricted access to withdrawals to $1000. Representative said they implemented on ALL accounts for ALL customers due to “fraud”... Read More |
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0.50% | 0.63x | $25,000 | Learn More |
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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 |
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0.40% | 0.50x | $0 | Learn More |
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WallyC | Dec 11, 2020 All the good reviews on this site are planted by the bank. This is the worst. It used to be good and the transfer speed is good. Still they lower their rates below anyone else and do it without the notice ... |
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Restrictions |
0.40% | 0.50x | $500 |
Learn More
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0.40% | 0.50x | $1,000 | Learn More |
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Joe | Dec 05, 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 |
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0.30% | 0.38x | $750 | Learn More |
Warning: Early Withdrawal Penalty is the greater of all credited interest or 90 days interest. |
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Eddie | Dec 05, 2019 No |
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0.25% | 0.31x | $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% | 0.31x | $5,000 | Learn More |
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Jeremy | Aug 25, 2020 I cannot say that I am too happy about the rate, but the service on this one is excellent. Read More |
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0.25% | 0.31x | $10,000 | Learn More |
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Gustavo L 18 | Feb 28, 2020 Purepoint is great. Only Citizens Access is better and I've had all of these. I have nothing to gain by saying this, but I would opt for Purepoint when the rates are comparable. Read More |
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0.20% | 0.25x | $1,000 | Learn More |
$1,000 minimum amount to open an account
No setup or maintenance fees
Additional deposits are permitted during the term of the CD.
•Interest is earned daily, credited and compounded monthly.
•Interest begins to accrue on the business day you deposit cash and non-cash items.
•The interest rate will be paid until the maturity date of your certificate.
•The account will automatically renew at maturity. You will have 10 calendar days (grace period) after the maturity date to withdraw your funds without being charged a penalty.
•No withdrawals from this account may be made without penalty until the maturity date.
•A penalty may be imposed for withdrawals before maturity:
--For CD’s with terms of less than twelve months, we may impose a penalty equal to three months’ interest on the entire CD amount, rather than the amount withdrawn subject to penalty.
--For CD’s with terms equal to or greater than twelve months, we may impose a penalty equal to six months’ interest on the entire CD amount, rather than the amount withdrawn subject to penalty. |
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Yella | Jan 04, 2021 I am very upset. This was advertised on this site or some other site. It was impossible to get the account opened. When I reached people on the phone, they were nasty. Now the rate is lower and I cannot ge... Read More |
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0.15% | 0.19x | $1,000 | Learn More |
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CHow1975 | Nov 18, 2017 This is a decent account until you need to withdraw something and then it is hell on wheels. Read More |
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| Bank Institution | Product Term | Interest Rate (APY) |
|---|---|---|
| Connexus | 1-Year | 0.71% APY with $5,000 minimum |
| Banesco USA | 1-Year | 0.70% APY with $1,500 minimum |
| CFG Bank | 1-Year | 0.67% APY with $500 minimum |
| USAA Federal Savings Bank | 3-Year | 0.91% APY with $175,000 minimum |
| Connexus | 3-Year | 0.90% APY with $5,000 minimum |
| Comenity Direct | 3-Year | 0.85% APY with $1,500 minimum |
| Primary Bank | 5-Year | 1.15% APY with $1,000 minimum |
| USAA Federal Savings Bank | 5-Year | 1.11% APY with $175,000 minimum |
| Community Federal Savings Bank | 5-Year | 1.10% APY with $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.
