Virginia

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Virginia CD Rates – 5-Year

You are viewing rates from banks across Virginia





Below are 5-year CD Rates from banks that are located in Virginia. 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.

VA - July 30, 2025

5 Year CD National Average : 0.92% ?

Banks APY MIN MILES ?

Early Withdrawal Penalty is 730 days interest.
Rate History: 4.10% → 4.20% → 4.15% → 4.05% → 4.20%

| 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

Rate History: 4.00% → 4.15%

| 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

Warning: Early Withdrawal Penalty is 2% of the account balance.
Rate History: 4.20% → 4.15% → 4.10% → 3.95% → 4.05%

| Jul 3, 2023

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

Early withdrawal penalty is 365 days interest.
Rate History: 3.90% → 3.80% → 3.50% → 3.90% → 4.00%

| Jul 4, 2025

Bread's current 6-month CD is 4.45%, not 4.35%. Read More

Rate History: 3.05% → 3.50% → 4.11% → 4.00%

| 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

Early Withdrawal Penalty is 90 days interest.
Rate History: 4.00% → 3.75% → 3.25% → 3.75% → 4.00%

| 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. Read More

Early Withdrawal Penalty is 360 days interest.
Rate History: 4.24% → 4.09% → 3.67% → 3.65% → 3.97%

| Jan 30, 2024

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

Early Withdrawal Penalty is 90 days interest.
Rate History: 3.00% → 4.11%

| Jul 1, 2022

Very easy opening process and wonderful staff. Read More

Early Withdrawal Penalty is 6 Months' Interest.
Rate History: 4.35% → 4.00% → 3.80%

| 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

Rate History: 4.00% → 3.85% → 3.75% → 3.80%

| 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. Read More

| 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

Rate History: 4.10% → 4.00% → 3.80% → 3.60% → 3.75%

| Feb 15, 2024

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

Early Withdrawal Penalty is 180 days interest.
Rate History: 4.00% → 3.75% → 3.25% → 3.81% → 3.75%

| 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 Read More

Rate History: 3.60% → 3.75% → 3.65% → 1.25% → 3.65%

| 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

Early Withdrawal Penalty is 180 days interest.
Rate History: 4.50% → 4.15% → 4.00% → 3.75% → 3.60%

| 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 ... Read More

Warning: Early withdrawal penalty is 2% of principal

| Dec 22, 2018

I know VirtualBank has monitored these comments in the past and answered here. This is important because they do not respond to questions submitted through the website. I am trying to find out the pena... Read More

Rate History: 3.90% → 3.75% → 3.50% → 3.40% → 3.50%

| 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

Early withdrawal penalty is one-fourth the amount of interest that would have been earned had CD been held to maturity.
Rate History: 4.00% → 3.90% → 3.65% → 3.45% → 3.50%

| Mar 20, 2025

A non-customer-friendly organization that just switches between two contaminated brands trying to bring back some sort of goodwill that it had before it started selling fake foreign currency CDs in 2006 an... Read More

Early Withdrawal Penalty is 6 months interest.
Rate History: 4.05% → 4.05% → 3.90% → 3.75% → 3.50%

| Mar 15, 2023

Thank you for the reviews above. I was wondering why I was only getting 0.3% when interest rates have gone up. Why CapitalOne360 is putting loyal and long time customers at a disadvantage is beyond me. ... Read More

Rate History: 3.90% → 3.60% → 3.50% → 3.40% → 3.50%

| 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

Rate History: 4.00% → 3.90% → 3.75% → 3.50%

| 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

Rate History: 4.00% → 3.75% → 3.50%

| 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 180 days interest.
Rate History: 4.00% → 4.00% → 3.40%

| 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... Read More

Rate History: 2.90% → 3.30%

| Oct 11, 2020

You probably thought - as did I - that you were looking at a site that belongs to and was the responsibility of Gateway First. After all it includes their headings, selected financial statements, many pag... Read More

Early Withdrawal Penalty is 180 days interest.
Rate History: 4.15% → 3.75% → 3.50% → 3.75% → 3.25%

| 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... Read More

Rate History: 3.00% → 4.00% → 3.50% → 3.25%

| Jul 26, 2024

Multiple roadblocks trying to set up a savings account with Forbright and my application was ultimately declined, in spite of my multiple CDs among three banks, stock investments, eleven credit cards, and ... Read More

Early Withdrawal Penalty is 30 months interest.
Rate History: 3.50% → 3.00% → 2.50% → 3.00%

Rate History: 2.85% → 3.00%

Rate History: 3.10% → 2.90%

Early Withdrawal Penalty is 180 days interest.
Rate History: 4.10% → 4.00% → 3.90% → 3.60% → 2.85%

| Jun 10, 2024

I guess customer service is in the US (not sure). I'd rather that someone in the Philippines answered though. These people are so poorly trained and ill informed that I do not trust them with my personal... Read More

Rate History: 3.00% → 2.85%

| 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

| Dec 21, 2023

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

Rate History: 3.00% → 2.75%

| Mar 20, 2016

Good solid bank. Read More

Rate History: 2.27% → 2.32%

| Nov 3, 2023

site does not update at all, totally wrong rates listed Read More

Rate History: 3.00% → 2.50% → 2.00%

| 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

Rate History: 2.00% → 3.00% → 2.00% → 3.00% → 2.00%

| Apr 30, 2019

No issues. I feel confident using them. Read More

| Feb 25, 2022

I joined Citi with a Costco-VISA card. An Accelerate followed, and then a checking account. Costco-VISA is necessary for using a credit card at Costco, otherwise cash is necessary. Accelerate Savings w... Read More

Rate History: 2.00% → 2.50% → 2.00%

| Jan 2, 2023

Terrible customer service by investment side. Fees too high , too full of themselves Read More

| Apr 12, 2019

United Bank in Front Royal does not know how to set up an inherited IRA. It took over two months to transfer it from Merrill Edge. Several mistakes were made. And then they did not title it correctly. T... Read More

| Jun 28, 2021

They bait and switch. Advertise cds at .40 but offer only .04 when in the office. Sharp business practice. Read More

Rate History: 2.50% → 1.50%

| 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

Rate History: 1.00% → 1.35% → 1.30% → 1.35%

| Nov 17, 2020

Is notarie services available today at a woodforest on wilkinson blvd Read More

Rate History: 1.51% → 1.31%

Rate History: 1.05% → 1.30%

| May 26, 2017

Before009 Read More

| Jan 27, 2023

The worst bank I have ever had Read More

1.30%

$10,000

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Rate History: 2.50% → 1.25%

| 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

| Mar 31, 2018

I have banked with Bank of Botetourt since 1960 when it was Bank of Troutville that later merged with Bank of Buchanan before becoming the Bank of Botetourt. An excellent bank with knowledgeable, helpful ... Read More

1.16%

$10,000

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1.15%

$10,000

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1.11%

$10,000

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1.10%

$500

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1.05%

$500

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1.00%

$10,000

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1.00%

$10,000

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1.00%

$10,000

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0.90%

$10,000

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0.90%

$10,000

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0.90%

$10,000

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0.85%

$10,000

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0.85%

$500

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0.85%

$10,000

-

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0.85%

$1,000

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0.85%

$10,000

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0.80%

$10,000

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0.80%

$10,000

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0.76%

$500

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0.75%

$10,000

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0.75%

$10,000

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0.75%

$10,000

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0.75%

$1,000

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0.75%

$10,000

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0.75%

$10,000

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0.75%

$10,000

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Rate History: 0.25% → 4.32% → 0.75% → 3.03% → 0.75%

| May 21, 2021

avoid this Read More

0.70%

$10,000

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| Mar 5, 2019

Pinnacle has not had a 3% CD since Oct of 2018. Read More

0.65%

$1,000

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0.65%

$10,000

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0.60%

$500

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0.60%

$10,000

-

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| Mar 25, 2015

OLIVER NORTH AIR LINES GOVERNOR BLANCO Read More

0.60%

$100,000

-

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| Aug 5, 2020

How Willian Investments Company Brought Happiness To My Home. Hello Everyone out there! My name is Tom Brandy, from USA, I am using this medium to announce to the general public on how Willian Investmen... Read More

0.60%

$10,000

-

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| Aug 28, 2022

Rates are totally uncompetitive now. Read More

0.55%

$10,000

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0.55%

$10,000

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0.55%

$10,000

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0.55%

$100,000

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0.55%

$100,000

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0.52%

$500

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| 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

| Jul 20, 2020

This bank is very bad. I am posting my story here now, hoping to make a reference for those friends who want to become their customers. I was very excited when I saw Blue Ridge Bank, N.A. on Google beca... Read More

0.50%

$10,000

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0.50%

$10,000

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0.40%

$10,000

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| Jun 12, 2023

US Bank reported me to dult Protective Services because my husband is 85 and I am63. He got sick and went into a nursing hime for 3 months. My husband always handled the financial affairs. I had to take ov... Read More

| Mar 29, 2020

have been waiting 8 weeks - yes 8 weeks for a closing date from this bank ..... they keep giving flimsy excuses requesting insignificant and unnecessary paperwork from us ( the seller ) the buyers who know... Read More

| Jan 12, 2021

We are a commercial customer that have been with Pioneer Bank since 2014 when they were privately held in Dripping Springs. Since they were sold we have been through 3 bank managers and the Manager servic... Read More

0.30%

$10,000

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0.30%

$10,000

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| 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... Read More

| 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

0.25%

$10,000

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0.25%

$10,000

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| Mar 28, 2022

Vaporware. Was approved to open an account. I logged in on several different browsers with differing rendering codes--each time got nothing but 3 circles running left to right for up to a half hour when I ... Read More

0.20%

$10,000

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0.20%

$10,000

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0.20%

$100,000

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Rate History: 0.15% → 0.01% → 0.15%

| 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

| Dec 30, 2018

Garden14 Read More

Rate History: 0.03% → 0.05%

| Mar 28, 2023

On line banking gives a confirmation number when paying bills. But it doesn’t confirm that the bill will be paid only that they have the information. Ridiculous. Read More

| Jul 28, 2022

Not at all happy with Truist compared to BB+T. New transaction policy makes them painfully slow. Paying .01 % interest on money market accounts, 13 week T Bill's are around $2.5%.I hope that they are enj... Read More

| May 18, 2019

Had checking and savings for years when living in Philly. Went into PNC 2.35 APY high yield savings. They have thus far maintained rate. Easy web site and great customer phone service. Still maintain check... Read More

| Jul 24, 2023

BOFA is a den of people thieves camouflaged as bank operatives. There’s a soon to be uncovered carrel of money laundry there. They took all my money and don’t want to release it to me for no particular... Read More

All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

Branches Info around zip 10116


Branch Street City State
EagleBank
Tysons Branch
8245 Boone Boulevard Vienna VA
Capital One, National Association
Capital One, National Association Branch
2401 Smith Boulevard, Room B2518 Arlington VA
Forbright Bank
Herndon Branch
150 Elden Street Suite 170 Herndon VA
Presidential Bank, FSB
Arlington Branch
901 N. Stuart Street Arlington VA
Benchmark Community Bank
Benchmark Community Bank Branch
Fifth Avenue And Commerce Street Kenbridge VA
The Farmers Bank of Appomattox
The Farmers Bank Of Appomattox Branch
223 Main Street Appomattox VA
Citizens
Glen Allen Colleague Branch
10561 Telegraph Road Glen Allen VA
The Farmers Bank of Appomattox
The Farmers Bank Of Appomattox Branch
223 Main Street Appomattox VA
Benchmark Community Bank
Benchmark Community Bank Branch
Fifth Avenue And Commerce Street Kenbridge VA
Citibank, National Association
Tysons Corner Branch
8516 Leesburg Pike Vienna VA
United Bank
Gainesville Branch
7905 Heritage Village Plaza Gainesville VA
Atlantic Union Bank
Court House Branch
6720 Sutton Road Gloucester VA
Woodforest National Bank
0927 Martinsville Wal-Mart Branch
976 Commonwealth Blvd Martinsville VA
Chesapeake Bank
Irvington Branch
98 King Carter Drive Irvington VA
Powell Valley National Bank
Wise Branch
540 West Main Street Wise VA
Bank of Botetourt
Natural Bridge Station Branch
9 Lloyd Tolley Road Natural Bridge Station VA
Lee Bank and Trust Company
Bristol Branch
707 Gate City Highway Bristol VA
FVCbank
Manassas Branch
7900 Sudley Road, Suite 100 Manassas VA
CornerStone Bank
College Square Branch
744 North Lee Highway Lexington VA
Miners Exchange Bank
Miners Exchange Bank Branch
483 Front Street Coeburn VA
MainStreet Bank
Mainstreet Bank Branch
10089 Fairfax Blvd Fairfax VA
Fulton Bank, National Association
Stony Point Branch
9030 Stony Point Parkway Richmond VA
Highlands Community Bank
Highlands Community Bank Branch
307 Thacker Avenue Covington VA
New Horizon Bank, National Association
New Horizon Bank, National Association Branch
2501 Anderson Highway Powhatan VA
Locus Bank, Inc.
Vcc Bank Branch
110 Peppers Ferry Road Nw Christiansburg VA
Capon Valley Bank
Western Frederick Branch
6701 Northwestern Pike Gore VA
John Marshall Bank
Leesburg Branch
842 S King St Leesburg VA
Martinsville First Savings Bank
Martinsville First Savings Bank Branch
25 W Church Street Martinsville VA
First Sentinel Bank
Bluefield Branch
801 S. College Ave., Ste. 5 Bluefield VA
First Bank
South Woodstock Branch
860 South Main Street Woodstock VA
The Freedom Bank of Virginia
The Freedom Bank Of Virginia Branch
10555 Main Street Fairfax VA
SKYLINE NATIONAL BANK
Fairlawn Branch
7349 Perpper Ferry Boulevard Radford VA
The Bank of Charlotte County
Brookneal Branch
308 Lynchburg Avenue Brookneal VA
Bank of Charles Town
Middleburg Branch
115 The Plains Road, Suite 150 Middleburg VA
Burke & Herbert Bank & Trust Company
Burke Town Plaza Branch
9516 Old Keene Mill Road Burke VA
Legacy Bank
Hurley Branch
10073 Hurley Road Hurley VA
MVB Bank, Inc
Reston Branch
1801 Old Reston Avenue, Suite 103 Reston VA
Farmers & Merchants Bank
Broadway Branch
126 North Timber Way Broadway VA
Pendleton Community Bank, Inc.
Harrisonburg Branch
41 Monte Vista Dr Harrisonburg VA
Citizens Bank and Trust Company
Blackstone Shopping Center Branch
1575 South Main Street Blackstone VA
The Bank of Southside Virginia
Colonial Heights Branch
764 East Ellerslie Avenue Colonial Heights VA
New Peoples Bank, Inc.
Castlewood Office Branch
87 Miners Drive Castlewood VA
Movement Bank
Movement Bank Branch
201 N. Union Street Danville VA
First National Bank
First National Bank Branch
622 Broad Street Altavista VA
Pinnacle Bank
Salem Branch
8 East Main Street Salem VA
TruPoint Bank
West Abingdon Branch
914 West Main Street Abingdon VA
The Blue Grass Valley Bank
Monterey Branch
East Main Street Monterey VA
Shore United Bank, National Association
Onley, Va Branch
25306 Lankford Hwy Onley VA
Oak View National Bank
Marshall Office Branch
4174 D Old Stockyard Road Marshall VA
Armed Forces Bank, National Association
Fort Myer Branch
108 Mcnair Road, Building 451 Fort Myer VA
Hanmi Bank
Annandale Branch
7140 Little River Turnpike, Suite 749 Annandale VA
Carter Bank & Trust
Memorial Drive Branch
998 Memorial Drive Pulaski VA
The Old Point National Bank of Phoebus
Fort Monroe Branch
100 Griffith Street Fort Monroe VA
The First Bank and Trust Company
East Abingdon Branch
933 East Main Street Abingdon VA
Hanmi Bank
Annandale Branch
7140 Little River Turnpike, Suite 749 Annandale VA
Citizens and Farmers Bank
Wellesley Branch
3490 Lauderdale Drive Richmond VA
The Old Point National Bank of Phoebus
Fort Monroe Branch
100 Griffith Street Fort Monroe VA
Farmers and Miners Bank
Rose Hill Branch
6489 Dr. Thomas Walker Rd Rose Hill VA
The National Bank of Blacksburg
Us Route 11 Branch
U.S.route 11 Dublin VA
Blue Ridge Bank, National Association
Stuart Branch
48 Animal Clinic Road Stuart VA
Old Dominion National Bank
Old Dominion National Bank Branch
4916 Plank Road, Suite 216 North Garden VA
Farmers and Miners Bank
Rose Hill Branch
6489 Dr. Thomas Walker Rd Rose Hill VA
Bank of the James
Main Street Branch
828 Main Street Lynchburg VA
Metro City Bank
Centreville Branch
5900 Centreville Crest Lane, Suite B Centreville VA
Pioneer Bank
Harrisonburg Branch
890 West Market Street Harrisonburg VA
The Fidelity Bank
Rocky Mount Branch
77 Powder Creek Lane Rocky Mount VA
Southern Bank and Trust Company
Lynnhaven Branch
601 Lynnhaven Parkway Virginia Beach VA
Chain Bridge Bank, National Association
Chain Bridge Bank, National Association Branch
1445-A Laughlin Avenue Mclean VA
First Community Bank
Salem Branch
1406 S. Colorado Street Salem VA
TowneBank
First Colonial Branch
984 First Colonial Road Virginia Beach VA
The Bank of Marion
Washington Avenue Branch
1026 South Main Street Marion VA
Southern Bank and Trust Company
Lynnhaven Branch
601 Lynnhaven Parkway Virginia Beach VA
First-Citizens Bank & Trust Company
First-Citizens Bank & Trust Company Branch
906 Branchway Road Richmond VA
First Horizon Bank
State Street Branch
901 West State Street Bristol VA
Truist Bank
Tazewell Branch
100 Hillsboro Drive North Tazewell VA
PNC Bank, National Association
Herndon Branch
950 Herndon Parkway Herndon VA
Bank of America, National Association
Mathews Branch
10458 Buckley Hall Road Mathews VA


BestCashCow strives to maintain the most accurate rates. If you believe a rate is not accurate, please let us know.

PRODUCT INFORMATION

Five Year CDs - Branch Banks 2025

Five-year CDs are the big kahuna of the CD world. While banks may offer six-year, seven-year, or even 10-year CDs, the five-year is the longest of the most commonly offered terms. The 5-year CD is therefore often the highest offer at your local bank. Therefore, the temptation for those looking for yield is to open one, deposit money, and forget about it for five years. This could be a mistake. In rising rate environments a five-year CD may not be a good investment.

Safety

Like every other CD term, five year CDs from FDIC insured banks are protected up to FDIC limits (generally $250,000 per account holder per bank). If your deposit is over the FDIC limit then you may not receive the uninsured money in case of a bank failure.

Inflation

The principle threat to a a five year CD is inflation. If the CD is opened in a low rate environment, and rates and inflation subsequently rise, then inflation will erode the value of the certificate of deposit over its five years. For example, if a depositor opened a five year CD in year 1 with a yield of 2.05% APY and inflation at 1.5%, then the real return is .55 percentage points. But if inflation rises the next year to 2.5% and stays there for the next four years, then the CD in real terms is losing money every year: 2.05% - 2.5% = -.45%.

While it is impossible for anyone to predict too far into the future, savers should be cognizant of the economic environment before locking up money for a five year time-period. Our rate analysis page provides some insight into where we think rates will go.

On the other hand, if rates are falling and will continue to do so for some time due to an economic recession then it makes sense to lock in a higher rate with a five year CD. Savers who opened five year CDs in 2008 immediately after the financial crisis were able to lock in rates in the 6% range, a great move considering two years later a five year CD paid below 3%.

Interest

Five-year CDs currently pay about 1.00% more in interest than a one year CD. In general, CDs of this duration are best opened as part of a laddered CD portfolio or if the depositor thinks that rates will either stagnate or drop over the next couple of years.

Opening a Five Year CD

Opening a five year CD in a branch is relatively easy and similar to every other CD term. Most banks require the customer be a resident of the United States and most branch-based banks ask that the account be opened in the bank. Funding can be performed by transferring money that is already located at that bank or by check or ACH transfer from another bank. The CD can be opened that day and the rate locked.

With longer term CDs, savers should make sure they put a record of the CD in a safe place and that if they move, they forward their new address to the bank. In cases where the bank cannot find the CD holder, the bank may hand the funds over to a state authority as a lost deposit, and it will require onerous paperwork to reclaim the money.

ADVANTAGES AND DISADVANTAGES OF FIVE YEAR CDs

Advantages of five year CDs

  • 5 year CDs provide the highest rate of the common CD terms.
  • The return is fixed for five years, which is an advantage in a flat or falling rate environment.

Disadvantages of five year CDs

  • The money is locked away for five years and cannot be withdrawn without a substantial penalty.
  • In a rising rate environment, inflation will reduce the value of the money in the CD over time.
  • Branch CDs require the saver to visit a branch and be subjected to cross-sell pitches and other marketing tactics.

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.

SAVINGS & CD CALCULATOR

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