How to lock in a high CD yield without overlooking the risks
If you have cash you won’t need for a few years, locking in the highest yield you can find is a smart move. Of course, a 5% return sounds even better when you secure it for several years and know exactly what you’re earning.
The catch? Yields above 5% aren’t easy to find, and the options that offer them usually come with tradeoffs. You may have to leave your money untouched for years, deal with restrictions on withdrawals or choose an investment that works differently from a traditional CD.
In other words, don’t chase the biggest number on the screen just yet. Before you lock in a rate, it’s worth knowing where to look and what you’re getting in return. Here are four ways to target yields above 5%, the risks that come with each, and how to decide whether it makes more sense to lock, ladder or wait.
Can you still lock in a yield above 5%?
You may be able to, but 5%+ yields are limited. As of September 2026, long-term U.S. Treasury securities are one of the few options with a current yield above 5%. Meanwhile, the best direct CDs, credit union certificates and brokered CDs we found were below 5%.
That doesn’t mean you should automatically chase a 5% yield. The numbers aren’t always apples to apples, either.
Banks and credit unions typically advertise certificates of deposit using APY, while brokered CDs may show a coupon or yield to maturity. Treasury securities are quoted using market yields. A yield above 5% may also require a very long maturity, a call provision, a large minimum deposit, membership in a particular credit union or the possibility that your investment could lose value if you sell before maturity.
The other factor to consider is whether you can actually get the advertised rate. A special offer may be limited to certain states, deposit amounts, new customers or members of a particular institution. For these reasons and others, you’ll want to check the fine print before you move your money.
Four places to look for a multi-year yield above 5%
If you’re determined to target a yield above 5%, you may have to look beyond the usual five-year CD. Banks, credit unions, brokerages and the U.S. Treasury all offer ways to earn a return on your savings, but they don’t work the same way.
Here’s another important piece of advice — don’t compare these options by the rate alone. Available terms, access to your funds, insurance coverage and risk of losing money can all look very different from one product to the next.
1. Direct CDs from banks
A direct certificate of deposit (CD) is one of the simplest ways to earn interest on your savings. You open the account with the bank that issues the CD, deposit your money and earn a fixed APY for a set term.
Online banks, community banks and smaller institutions can sometimes offer higher rates than the biggest national banks. Promotional CDs can also be worth a look. But if you’re trying to lock in a rate above 5% for several years, pay close attention to the term. A 5% promotional CD that lasts a few months isn’t the same as locking in 5% for three or five years.
As you compare the best CD rates, make sure to look at the current APY, terms, minimum deposit requirements and any early withdrawal penalties that apply. It’s also worth checking how often interest compounds and what happens when the CD matures. Some CDs automatically renew, potentially putting you into a different rate without much effort on your part.
Finally, make sure the bank is FDIC insured and keep the $250,000 FDIC insurance limit in mind. The limit generally applies per depositor, per insured bank and per ownership category, so large balances may need to be spread across banks or ownership categories to stay fully insured.
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Rates Updated on September 2, 2026
2. Share certificates from credit unions
Credit unions have their own version of CDs, which are often referred to as share certificates. They can be worth checking if you’re hunting for a higher fixed rate, particularly if a credit union is offering a special rate to new or existing members.
That said, you may have to qualify for membership, and the highest rate may only be available if you meet certain requirements. Check the membership rules, minimum deposit requirement and exact term before assuming the advertised rate applies to you.
Also look at the APY rather than focusing only on the dividend rate. APY accounts for the effect of compounding and gives you a better number for comparing certificates with bank CDs.
If you choose a federally insured credit union, your share accounts are generally insured by the National Credit Union Share Insurance Fund for up to $250,000, subject to the applicable ownership rules.
3. Brokered CDs through an investment account
Brokered CDs are still CDs issued by banks, but you buy them through a brokerage account instead of directly from the bank. That can make it easier to shop rates from multiple banks in one place.
This is where things can get a little more complicated. You may see new-issue CDs, secondary-market CDs, callable CDs and noncallable CDs. The number you’re looking at could also be a coupon, APY or yield to maturity, depending on the offering.
If you’re considering a brokered CD, check the yield to maturity and, if the CD is callable, the yield to call. A callable CD can be redeemed by the issuer before its scheduled maturity, which could leave you looking for somewhere else to put your money if rates have fallen.
You can also sell a brokered CD before maturity, but that’s not the same as making an early withdrawal from a traditional bank CD. Its market value can rise or fall, and you could lose money if you need to sell at the wrong time.
Brokered CDs can qualify for FDIC insurance because they are deposits at the issuing bank, but the usual insurance limits still apply. You’ll want to consider any other deposits you hold at that same bank when figuring out how much coverage you have.
4. Long-dated U.S. Treasury securities
If you’re willing to lock up your money for a very long time, Treasury securities are another place to look. Treasury bonds can provide a fixed coupon and return your principal at maturity, but they’re securities rather than bank deposits.
Also note that Treasury yields can move up or down over time, and that securing the best yield typically requires you to lock in your funds over a period of ten years or more.
Even when Treasury yields do move above 5%, a 20- or 30-year Treasury is a very different proposition from a five-year CD. If you hold it until maturity, you can receive the scheduled payments and principal. But if you need to sell earlier, the market price can be higher or lower than what you paid. Long-term bonds can be especially sensitive to changes in interest rates.
Also be aware that Treasuries are not covered by FDIC insurance. Instead, they’re backed by the U.S. government. And their interest generally is subject to federal income tax but exempt from state and local income taxes.
So if you’re considering a long-term Treasury, don’t just ask whether the yield crosses 5%. Ask whether you really want to make a decades-long commitment to get it.
When locking a multi-year yield may make sense
A high rate can look great on paper, but that doesn’t automatically mean you should lock it in. The right choice for how long to lock in a yield depends on when you’ll need the money, how much flexibility you want and what happens to rates after you invest.
Locking in a multi-year yield may make sense if:
- You won’t need the money soon. Money earmarked for emergencies, upcoming bills or other near-term expenses generally shouldn’t be tied up for years just to earn a higher rate.
- The maturity date matches your goal. If you’re saving for a known expense several years away, a CD or other fixed-rate investment that matures around that time can give you a predictable source of cash.
- You value predictability over flexibility. A fixed rate can make sense if you’d rather know what you’re earning than worry about where rates go next.
- The longer-term rate is worth the commitment. Compare the rate with shorter-term options, but remember that shorter CDs come with reinvestment risk. If you choose a one-year CD, for example, you’ll have to find somewhere else to put the money when it matures.
- You’re comfortable if rates rise later. Locking in a rate means giving up the chance to earn more if better rates become available later.
- The after-tax return still works for you. Your actual return can depend on your federal and state tax situation. Treasury interest, for example, is generally subject to federal income tax but exempt from state and local income taxes.
- Your deposits fit within insurance limits. If you’re using CDs or credit union certificates, check how much you already have at the same institution and make sure your total balance fits within the applicable insurance limits.
When to consider a CD ladder instead
You also don’t have to make this an all-or-nothing decision. A CD ladder can spread your money across several maturity dates, giving you regular opportunities to access your cash or reinvest it at whatever rates are available at the time.
For example, instead of putting $25,000 into one five-year CD, you could split the money among CDs with different maturity dates. That gives you less exposure to the risk of locking everything in at the wrong time.
Nobody knows exactly where rates will go next, so it can help to consider three simple scenarios:
- If rates fall: Locking in a competitive fixed rate could look good in hindsight because you won’t have to reinvest at lower rates when your CD or other investment matures.
- If rates stay about the same: The benefit of locking may be smaller. You could earn a similar return with shorter-term options while keeping more flexibility.
- If rates rise: A long-term lock could leave you earning less than you could with a new investment. That’s the tradeoff for getting a guaranteed fixed rate today.
What you may give up to secure a yield above 5%
A yield above 5% can be tempting, but the rate is only part of the story. Before moving your money, look at what you’re giving up to get it.
The bottom line? A higher yield isn’t automatically a better deal. The best option is the one that gives you a competitive return without creating a problem when you need your money.
Before you lock anything in, make sure you understand the maturity date, access rules, insurance coverage, tax treatment and what could happen if you need to sell or withdraw early.
Frequently asked questions
Top CD rates are currently around 4.5% or less, depending on the term and institution. However, that doesn’t mean a special promotional CD or limited offer won’t offer a yield above 5%. If you find one, check the actual APY, term, minimum deposit and eligibility requirements before moving forward.
Because Treasury securities and CDs quote returns differently, a 5% Treasury yield isn’t necessarily the same as a 5% CD APY.
Taxes can also affect the comparison. Treasury interest is generally exempt from state and local income taxes, while CD interest is generally taxable at both the federal and state levels. Before choosing between them, consider the investment’s term, what happens if you need to sell or withdraw early and whether the CD is FDIC-insured.
Yes, if it’s a callable brokered CD. The issuing bank can redeem a callable CD before its stated maturity date under the terms of the offering. That can leave you with your money back at a time when comparable rates may be lower, creating reinvestment risk.
Not necessarily. If you don’t need the money for several years and value a predictable return, locking some or all of it into a fixed-rate investment can make sense. But putting everything into one long-term product can leave you with less flexibility if you need cash or if better rates become available later.
