The Best 5-Year CD Rates for 2024

See current rates for 5-year CDs and compare to 1-year CD fees. Find rates, fees, pros and cons, and early withdrawal penalties. Ideal for long-term investment.
Written by Anna Baluch
Financial Expert
Managing Editor
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A man sits outside as he looks at his CD purchase on his tablet.

If you’re saving for an expense that’s at least five years away, like a down payment on a house or a wedding, a 5-year certificate of deposit (CD) can be a good option. It can protect your savings and earn a predictable, guaranteed return. Here’s what you need to know about 5-year CDs.

How Does a 5-Year CD Work?

Offered by a bank, credit union, or online lender, a 5-year CD is a type of savings account that pays a fixed interest rate on money you keep in it for 5 years.

Once the 5-year term ends and your CD has matured, you may withdraw the funds you deposited in addition to any interest your account accrued. If you need access to your money earlier, you will likely be on the hook for an early withdrawal penalty.

Our Picks for the Top 5-year CDs

Fortunately, there are many places you can turn to for a 5-year CD. To help you with your search, we’ve listed five of our favorite options below.

BMO Alto Certificate of Deposit

You can take out a BMO Alto 5-year CD with a $0 minimum deposit. There are no minimum balance requirements, and you’ll earn interest every month.

This CD is also insured by the Federal Deposit Insurance Corporation (FDIC) for your peace of mind. You can open the account online quickly from the comfort of your home and transfer funds via an ACH transfer.

Capital One 360 CD

The Capital One 360 5-year CD offers competitive rates and lets you choose whether to earn your interest at the end of the term, monthly, or annually. You can open this CD for $0 online.

You may visit a local Capital One Café or bank branch if you prefer in-person banking. Rest assured that all your funds will be insured by the FDIC.

Marcus by Goldman Sachs High-Yield CD

To take advantage of the Marcus by Goldman Sachs High-Yield 5-year CD, you’ll need a minimum deposit of $500. Thanks to the 10-day rate guarantee, you’ll receive the highest published APY offered once your account reaches the $500 mark within 10 days from when you open your account.

If you need support with your account, you can always contact the Contact Center, available seven days a week.

Synchrony Bank CD

You can get started with the Synchrony Bank 5-year CD right away, as there’s a $0 minimum deposit requirement. After you fund your CD initially, you can make a deposit during the 10-day grace period after your account matures.

There are no minimum balance requirements, and Synchrony Bank insures all CDs for up to $250,0000. The bank makes it a breeze to monitor your account and interest earnings online.

Tab Bank CD

The Tab Bank 5-year CD requires a $1,000 minimum opening deposit. You can choose from a few payment methods, including check, transfer, or compounding interest.

In addition to competitive rates, you may renew your CD automatically if you’d like. Your funds will be FDIC insured, even during market fluctuations.

Where Can You Find the Best CD Rates?

Hundreds of banks offer CDs, and there’s fierce competition among them to offer the best rates. We’ve compiled a list of some of the best CD accounts to help you find the ones that best fit your financial goals.

Pros and Cons of a 5-Year CD

Before you open a 5-year CD, it’s a good idea to familiarize yourself with these benefits and drawbacks.


  • Many options: Almost all financial institutions offer 5-year CDs. You shouldn’t have trouble finding the right product for your unique needs and preferences.
  • High interest rates: Compared to traditional savings and money market accounts, 5-year CDs usually offer higher interest rates. This can help you meet your savings goals much faster with minimal effort.
  • Guaranteed returns: With a 5-year CD, you can immediately predict your returns. There won’t be any surprises because you’ll know exactly how much you’ll earn in interest at the end of your 5-year term.
  • Federally insured: Most 5-year CDs are federally insured by the FDIC or NCUA. In the unlikely event the bank or credit union fails, your funds will be protected.


  • Limited liquidity: Unlike traditional savings accounts, 5-year CDs usually charge a penalty for early withdrawals. This can be problematic if you need the funds before five years.
  • Generate higher returns elsewhere: You may earn more if you invest your money in the stock market. Maximizing gains when you receive a fixed interest rate when you open a 5-year CD can be complex.
  • Inflation risk: Interest rates on a 5-year CD might not be high enough to keep up with inflation. Your account may eventually lose its purchasing power if consumer prices increase.
  • Initial deposit requirements: Depending on the 5-year CD you choose, you might have to deposit a specific amount of money when you open your account. This may be $500, $1,000, or even more.

5-Year CD Early Withdrawal Penalties

When you open a 5-year CD, you commit to keeping your money in the account for five years. If things don’t go as planned and you need to access the funds to cover an emergency expense, you may have to pay an early withdrawal penalty.

Early withdrawal penalties vary by financial institution but can add up quickly and significantly eat into your earnings. That’s why having an emergency fund and a CD in a highly liquid savings account is essential. Here’s a look at early withdrawal penalties for 10 banks that offer 5-year CDs.

Why You Should Get a 5-year CD

There are a number of scenarios in which a 5-year CD is a good choice, such as:

  • Avoid risk: If you’re looking for a way to mitigate risk, a 5-year CD can help. You’ll receive guaranteed returns and be able to add some stability to your investments in a brokerage account, for example.
  • You believe rates will drop: A 5-year CD may protect you from lower interest rates based on market conditions. On the flip side, however, you might lose money if rates go up.
  • You have a clear savings goal in mind: Maybe you’d like to remodel your kitchen in five years. Or perhaps you’ll need a new vehicle then. A 5-year CD may be worthwhile if you anticipate an expense in five years.
  • You still have access to liquid funds: Since a 5-year CD does not allow for liquidity like a traditional savings account, you should only open one if you have other accounts to cover emergency or sudden expenses. Otherwise, you may face a costly early withdrawal fee.

How to Shop for the Best 5-Year CDs

As you shop around for a 5-year CD, keep the following in mind:

Interest Rates

The higher the interest rate, the more you’ll earn at the end of the 5-year term. Ideally, you’d choose a CD with a competitive interest rate.

Minimum Deposit Requirements

Each financial institution has its own requirements. You may have to deposit $0 to open the CD or $500, $1,000, or even more.

Early Withdrawal Penalties

Make sure you know the early withdrawal penalties of all accounts you consider. Some banks will charge you a certain number of days of interest, while others will require you to pay a percentage of your withdrawal amount. You don’t want to be blindsided if you have to access your funds before the five-year term is up.


Be sure the CD you choose is insured by an FDIC-insured bank or an NCUA credit union. If you choose a CD without insurance, you risk losing your hard-earned money.


Some financial institutions charge monthly maintenance fees for their CDs. These may be anywhere from $5 to $25. In some cases, you can avoid these fees if you maintain a certain minimum balance or enroll in online statements, for example.

Account Access

Many 5-year CDs are online-only, meaning you can only open them online or via mobile phone. If you feel more comfortable with in-person banking, you’ll need to find a financial institution with local branches so you can manage your CD there.

Compare 1-year and 5-year CDs

Would you be better off with a 1-year or 5-year CD? Comparing these factors can help you decide.

Interest Rates

In general, 5-year CDs pay higher interest rates than 1-year CDs, but that’s not always the case. You may earn more and enjoy higher returns if you store your money in the account for 5 years instead of only 1 year.

Early Withdrawal Penalty

Some financial institutions charge higher early withdrawal penalties for longer-term CDs. If you decide to withdraw the funds from a 5-year CD, you may face a higher fee than if your CD had a 1-year term.

Length of Time

A 5-year CD locks in your funds for a more extended period. With a 1-year CD, however, you only have to wait 365 days before you can retrieve them. It’s up to you to decide whether you’re okay with storing your money for five years or prefer to access it sooner rather than later.

Savings Goals

If you have a longer-term savings goal, like a down payment for a house or a new car, you may be better off with a 5-year CD. However, if you only need to save a couple thousand dollars for new appliances, for example, a 1-year CD might make more sense.

About Author
Anna Baluch
Anna Baluch is a personal finance writer and expert who writes about financial topics ranging from personal and student loans to mortgages, debt relief, auto financing, and budgeting. As a contributor to MoneyRates, Anna’s insights are backed by her hands-on experience, exemplified by her achievement of paying off her mortgage in just 16 months, a journey she shared on the “Burn Your Mortgage” podcast in 2019. Her knowledge and expertise have appeared on personal finance platforms such as LendingTree, Business Insider, Credit Karma, Experian, American Express, Rocket Mortgage, U.S. News & World Report, and Policygenius. Anna is dedicated to guiding consumers toward making informed financial choices.
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