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Best 5-Year CD Rates

Are your savings making as much as a five-year CD?

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Five-year certificates of deposit (CDs) are among the most popular CDs because they’re often a bank or credit union’s highest-yielding deposit account. In a falling interest-rate environment, locking in a decent return for five years can be very appealing. Then again, five years is a long time to stash your money away, so you should consider your options carefully.

Every week we comb through the five-year CD rates from over 150 banks and credit unions nationwide to find the highest ones. We track APYs daily but re-evaluate and re-order our list weekly. All accounts that make our cut are insured by either the FDIC or the NCUA and are available to customers nationwide, even if there are a few hoops to jump through to get them. 

We also include a few four-year CDs because if you’re building a CD ladder, you’ll need these building blocks as well. (For both lists, we consider CDs with terms close to four and five years, if not exact: 42 to 53 months for four-year CDs and 54 to 66 months for five-year CDs.) In the case of a tie on the APY, we look at the CD with the shortest term and then with the lowest minimum deposit required to earn the APY.

Here are the top four-year and five-year CD rates as of Dec. 8, 2022.

Below are the top certificate of deposit rates available from our partners, followed by a ranking of some of the best CD rates nationwide.

Best 5-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
Bread Savings 4.75% $1,500 12 months of interest
CFG Bank 4.60% $500 6 months of interest
Interior Federal Credit Union 4.59% $500 12 months of interest
Department of Commerce Federal Credit Union (60-Month to 84-Month) 4.59% $25,000 180 days of dividends
Sallie Mae Bank 4.55% $2,500 6 months of interest
MYSB Direct 4.51% $500 All interest earned with a 3 month minimum
BMO Harris Bank (59-Month) 4.50% $5,000 545 days of interest

Best 4-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
Bread Savings 4.65% $1,500 12 months of interest
NASA Federal Credit Union (49-Month) 4.60% $10,000 All interest earned up to 12 months
Merrick Bank 4.55% $25,000 9 months of interest

Bread Savings (4-Year and 5-Year)

Formerly known as Alliance Data Systems, Bread Financial is an FDIC-insured institution that offers savings accounts and CDs under the name Bread Savings. It also offers lending options under the name Bread Loans in addition to multiple credit cards.

Bread has no brick-and-mortar locations, but customers can manage their accounts online or via a mobile app for Android and Apple devices.

CFG Bank

CFG Bank is a privately owned and operated bank that dates back more than 90 years and is headquartered in Baltimore. As the 12th largest bank in Maryland, it serves mainly the mid-Atlantic region, but any U.S. citizen or legal resident who is 18 years or older can apply for a CD account. You’ll also need a valid Social Security number and a physical address in the U.S. CFG Bank offers CDs with multiple terms ranging from 12 months to 60 months. In addition, the bank has checking accounts, money market accounts, and more.

Interior Federal Credit Union

Based out of the U.S. Department of the Interior Building in Washington, D.C., Interior Federal Credit Union was established in 1935. Members can do their banking online, at over 5,500 shared branches nationwide, or more than 55,000 shared ATM locations nationwide.

Membership is available to individuals or the family of individuals employed by the DOI, one of its bureaus, or one of its contractors. Bureaus of the DOI include the National Park Service, Bureau of Reclamation, U.S. Geological Survey, Bureau of Indian Affairs, Bureau of Ocean Energy Management Regulation and Enforcement (BOEMRE), Bureau of Land Management, Office of Surface Mining, and U.S. Fish and Wildlife Service. Employees, volunteers, or partners of numerous other groups also are eligible for membership. A full list is available on Interior FCU’s website.

Department of Commerce Federal Credit Union (48-Month to 84-Month)

​​The Department of Commerce Federal Credit Union was chartered in 1964 and has two branches in Washington, D.C.—one at the U.S. Department of Commerce and another at the White House. It also has a branch in Silver Springs, Maryland. Those who do not live in the D.C. area can manage their accounts online or via a mobile app available for Android and Apple devices.

DOCFCU membership is available to anyone who lives, works, worships, or attends school in Washington, D.C., is a family member of a current member, or is a current or former employee of the U.S. Department of Commerce or its contractors, the National Oceanic and Atmospheric Administration, the White House Management and Administration Office, or the Executive Office of the President. Those who do not meet these eligibility requirements can gain eligibility by joining the American Consumer Council.

Sallie Mae Bank

Sallie Mae made its name in the student loan business, but it also operates an online bank as well. It’s quite impressive in size, actually, with more than $31 billion in assets as of August 2020. Its online bank offers only savings and CD accounts, however, so you’ll still need to get your everyday checking account elsewhere.

MYSB Direct

MYSB Direct is the online-only division of M.Y. Safra Bank, and it is marketed as an option with higher rates. Accounts for MYSB Direct are opened and managed through M.Y. Safra’s online and mobile banking services. Its mobile banking app is available for Android and Apple devices.

The history of the Safra family in banking dates back to Jacob E. Safra, who established his own bank in Beirut in 1920. Two generations later, Moise Y. Safra established M.Y. Safra Bank, a full-service bank in New York City. It offers private, personal, and business banking, as well as fintech services.

CD terms are available from three months to five years.

BMO Harris Bank (59-Month)

BMO Harris Bank is the eighth largest bank in North America and has been around for over 200 years. It offers a full line of personal and business banking products and services, including checking, savings, retirement accounts, mortgages, credit cards, lines of credit, and more. The bank’s certificate of deposit terms range from three months to five years, and rates may vary by location.

NASA Federal Credit Union (49-Month)

Started in 1949 by members of the scientific community, NASA Federal Credit Union serves over 177,000 members nationwide. Anyone can join the credit union by becoming a member of the National Space Society. You can join via the NASA Federal Credit Union application page, and your first year of membership is complimentary. Members are also required to sign up for a primary savings account with a minimum deposit of $5.

Merrick Bank (4-Year)

Merrick Bank has been around since 1997 and specializes primarily as a major issuer of Visa credit cards. The bank also provides personal loans and loans for boats and other recreational vehicles.

As far as CDs go, terms range from six months to five years. 

Frequently Asked Questions

What Is a 5-Year CD?

A certificate of deposit is a special type of savings account that locks in your money and your interest rate. Also known as a time deposit, a CD requires you to leave your money alone for a specified length of time without adding to or withdrawing from the account.

With a five-year CD, you agree to keep your money with the bank or credit union for a length of five years and in turn, the financial institution will pay you the same APY for that entire five years. Each month or quarter, you’ll earn interest payments that are deposited into the CD and earn even more interest. That continues until the CD matures (reaches the end of its term), or until you withdraw early, which comes with a penalty.

Most 5-year CDs automatically renew for another term length when they mature. If they do, you can still withdraw or add money to the account during a short grace period at the start of the term. Most grace periods are around seven to 10 days in length. After that, the account is locked down again for another five years, and you would have to pay an early withdrawal fee to access your funds any sooner.

Who Is a 5-year CD Best For?

If you have extra money that you won’t need on short notice (i.e., not the money you keep in your emergency fund), a 5-year CD can definitely earn more interest for you than a typical savings account.

Five-year CDs are often the highest-earning and longest-term accounts offered by a bank and credit union. As long as the institution is insured by the FDIC (for banks) or the NCUA (for credit unions), you’re guaranteed not to lose your money (up to $250,000) even if the bank goes under.

Five-year CDs are also a popular choice for CD ladder strategies. One common CD ladder method is to divide your money among five separate CDs with staggered terms (one-year, two-year, three-year, four-year, and five-year) so that one CD matures every year.

Once the one-year CD matures, you reinvest that money into a five-year CD, and you do that every year. That way, all of your money will be stored in high-yield CDs, but you’ll still get access to part of your money once a year if you should need it. You can also include CDs with terms shorter than a year if you want to access your money sooner.

What Are the Alternatives to a Five-Year CD?

Some banks offer CDs with even longer terms, all the way up to 10 years. That’s a big commitment, but you may be able to earn an even higher rate yet with these CDs.

Alternatively, if you won’t need the money you’ve set aside for a really long time (such as before you retire), many people advise investing in the stock market instead. Over the long term, the stock market has vastly outperformed CDs. There are no guarantees though, and unlike with a CD, you could lose money in the stock market.

Many banks offer five-year IRA CDs for you to earn a guaranteed rate on your retirement savings. They have a hidden opportunity cost, though: Your money might not grow as fast as if you’d placed it in a higher-earning (but more volatile) investment like stocks or bonds.

One other option is a high-interest savings account. You’ll have easier access to your money than you would with a CD, and many savings accounts these days pay rates that are competitive with CDs. The downside? The APYs are variable, so you won’t be guaranteed a rate of return. 

If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.

Article Sources
  1. Consumer Financial Protection Bureau. "What Is a Certificate of Deposit (CD)?"

  2. Office of the Comptroller of the Currency. "My Time Certificate of Deposit (CD) Matured, But I Didn't Redeem It. What Happened to My Funds?"

  3. "Is My Credit Union Federally Insured and How Do I Know?"

  4. U.S. Securities and Exchange Commission. "Risk and Return."

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