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 - April 24, 2024
5 Year CD National Average: 0.91% ?
| BANK | APY? | MIN? | |
|---|---|---|---|
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4.55% | $1,000 | Learn More |
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Early Withdrawal Penalty is 360 days interest.
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Beenthere | Jan 30, 2024 Have an IRA rollover, they don't take IRAs any longer. |
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4.50% | $0 | Learn More |
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Early Withdrawal Penalty is 180 days interest.
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smithy1968 | Apr 20, 2024 You really cannot prepare for how bad the customer service is on this one until you try to try to open and account and then need to call to find out why it wasn't funded promptly with your ACh bank instruc... Read More |
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4.50% | $1,000 | Learn More |
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Early Withdrawal Penalty is 180 days interest.
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Rob H. | 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 ... |
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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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Restrictions |
4.34% | $500 | Learn More |
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Rate History: 4.67% → 4.61% → 4.50% → 4.34% |
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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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4.32% | $1,000 | Learn More |
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Rate History: 0.75% → 0.25% → 4.32% |
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nonsense | May 21, 2021 avoid this Read More |
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4.31% | $500 | Learn More |
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Richard | Jul 1, 2022 Very easy opening process and wonderful staff. |
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4.30% | $500 | Learn More |
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JuanVelasco | 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... |
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4.30% | $10,000 | Learn More |
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Early Withdrawal Penalty is 730 days interest.
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Neil | 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 |
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4.15% | $1,500 | Learn More |
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Early withdrawal penalty is 365 days interest.
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Rad | 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 |
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4.05% | $0 | Learn More |
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Rate History: 4.10% → 4.20% → 4.05% → 4.05% |
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highstream | 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 |
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4.05% | $500 | Learn More |
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Rate History: 4.40% → 4.40% → 4.25% → 4.05% |
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TJK | 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 |
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4.05% | $25,000 | Learn More |
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Warning: Early Withdrawal Penalty is 2% of the account balance.
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Frank M | Jul 3, 2023 A 2% early withdrawal fee on a 1-year CD is almost equally insane as a 270 day one. |
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4.00% | $0 | Learn More |
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mcriss | 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 |
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4.00% | $500 | Learn More |
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Rate History: 3.80% → 4.10% → 4.00% |
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A Terkowitz | Feb 15, 2024 best bank on the list but no longer the most competitive Read More |
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4.00% | $500 | Learn More |
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Early Withdrawal Penalty is 90 days interest.
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JBaker65 | 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. |
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4.00% | $500 | Learn More |
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Mike Brown | 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 |
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4.00% | $1,000 | Learn More |
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Early withdrawal penalty is one-fourth the amount of interest that would have been earned had CD been held to maturity.
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Trey D | 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 |
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4.00% | $1,000 | Learn More |
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Early Withdrawal Penalty is 180 days interest. |
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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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4.00% | $2,500 | Learn More |
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HAL1975 | 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. |
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4.00% | $2,500 | 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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3.95% | $10,000 |
Learn More
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3.90% | $0 | Learn More |
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Rad | 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 |
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Restrictions |
3.85%
3.80% |
$100,000
$1,000 |
Learn More |
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Rate History: 4.05% → 0.50% → 3.85% |
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Amanda Frank | 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... |
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Restrictions |
3.80% | $1,000 | Learn More |
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Rob | 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... |
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3.75% | $0 | Learn More |
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Early Withdrawal Penalty is 180 days interest.
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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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3.75% | $2,500 | Learn More |
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Rate History: 3.90% → 3.75% |
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AVOID_ READ_CAREFULLY | 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 |
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Restrictions |
3.56% | $100,000 | Learn More |
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Rate History: 4.16% → 4.26% → 3.96% → 3.56% |
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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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D R Lineberger | Dec 30, 2018 Garden14 Read More |
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3.45% | $5,000 | Learn More |
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james | 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 |
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3.20% | $500 |
Learn More
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Rate History: 2.95% → 3.20% |
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3.05% | $25,000 | Learn More |
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79Thru | 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 |
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3.00% | $0 | Learn More |
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Dev1ldog | 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 |
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3.00% | $0 | Learn More |
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Rate History: 2.00% → 3.00% → 2.00% → 3.00% |
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Stella | Apr 30, 2019 No issues. I feel confident using them. Read More |
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3.00% | $500 | Learn More |
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Early Withdrawal Penalty is 6 months interest.
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George Adams | Jun 8, 2016 When is your next shred date @Ramtown? |
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3.00% | $1,000 | Learn More |
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not perfect but | 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 |
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3.00% | $1,000 | Learn More |
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J Dally | 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 |
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3.00% | $1,000 |
Learn More
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3.00% | $5,000 |
Learn More
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Early Withdrawal Penalty is 12 months interest.
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2.75% | $500 | Learn More |
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Jim S | Dec 21, 2023 Very easy to setup 6 month 5.35% CD from cornerstone account Read More |
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Restrictions |
2.65% | $500 |
Learn More
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Rate History: 2.75% → 2.65% |
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2.60% | $0 | Learn More |
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TerryGord1973 | 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 |
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Restrictions |
2.40% | $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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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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2.02% | $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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2.00% | $2,500 |
Learn More
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Rate History: 1.00% → 2.00% |
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1.75% | $1,000 |
Learn More
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Restrictions |
1.10% | $500 |
Learn More
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Rate History: 0.75% → 1.10% |
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1.05% | $1,000 | Learn More |
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Gripp13 | Jan 27, 2023 The worst bank I have ever had Read 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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0.50% | $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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MrBond | 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 |
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Restrictions |
0.40% | $500 |
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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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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0.15% | $500 |
Learn More
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| Bank Institution | Product Term | Interest Rate (APY) |
|---|---|---|
| Northern Bank Direct | 1-Year | 5.60% APY with $500 minimum |
| Finworth, a division of InsBank | 1-Year | 5.38% APY with $50,000 minimum |
| TotalDirect, a division of City National Bank of Florida | 1-Year | 5.35% APY with $25,000 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 | 4.66% APY with $1,000 minimum |
| IncredibleBank | 3-Year | 4.58% APY with $1,000 minimum |
| First Internet Bank of Indiana | 5-Year | 4.55% APY with $1,000 minimum |
| BMO Alto, a division of Bank of Montreal Harris | 5-Year | 4.50% APY with no minimum |
| Department of Commerce | 5-Year | 4.34% 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.
