Best 5-year CD Rates for July 2023 (Up to 4.59%)

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The national average APY (Annual Percentage Yield) on a 5-year CD is 1.37% APY. However, the best 5-year CD rate is 4.59% APY from First Internet Bank of Indiana.

 A 5-year CD may be ideal if you don’t need access to some of your savings for a few years. If you’re also interested in other CD term lengths, check out our overall best CD rates guide.

We check rates daily to find the best rates for 5-year terms Here are our top picks for 5-year CDs.

The Best 5-year CD Rates

• First Internet Bank of Indiana 5 Year CD: 4.59% APY
• Popular Direct 5 Year CD: 4.53% APY
• First National Bank of America 5 Year CD: 4.50% APY
• Crescent Bank 5 Year CD: 4.40% APY
• CFG Bank 5 Year CD: 4.40% APY
• Alliant 5 Year Certificate: 4.35% APY
• Delta Community Credit Union 5 Year CD: 4.35% APY 
• Barclays 5 Year Online CD: 4.35% APY

These are our picks for the best 5-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. Although Silicon Valley Bank, Signature Bank, and First Republic Bank have recently been shut down, keep in mind money is safe at a federally insured financial institution.  When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Compare the Best 5-year CDs

Expert Advice on Choosing the Best 5-year CD

To learn more about what makes a good CD and how to choose the best fit, Insider consulted four experts:

• Tania Brown, CFP at SaverLife
• Roger Ma, CFP with lifelaidout® and author of “Work Your Money, Not Your Life”
• Sophia Acevedo, CEPF, banking reporter, Personal Finance Insider
• Mykail James, MBA, CFEI, BoujieBudgets.com

Here’s what they had to say about CDs.

How do you decide how long your CD term should be?

CDs come in different terms that range from months to years, and a 5-year CD is typically one of the longest terms available. When choosing the right term for you, start with how you’re going to use the money, and when. If you’re buying a house in five years and know you won’t need the money until then, a 5-year CD might work for your needs — however, if you’re buying that house in two years, you’ll need to choose a shorter term.

Once you know when you’ll need the money, you can take a look at available rates. Maybe you have some flexibility around when you’ll need the money, and find it worth leaving in the bank an extra six months or year to get a higher rate.

Should you put money in a high-yield savings account, money market account, or CD?

You’re allowed to have multiple types of accounts, and it’s OK to put money in different places for different purposes. Perhaps you want a high interest rate on money you can access at any time for an emergency, so you put that emergency fund in a high-yield savings account.  Then, you want a savings account from which you can make regular withdrawals, so you use a money market account. Finally, you want to keep a nest egg out of sight and out of mind while earning a strong interest rate, so you use a CD.

Choosing which type of account to use comes down to how you plan to use that money, and when.

Our Methodology

First, we researched to find over 20 banks and credit unions that offered 5-year CDs. Then, we reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.

5-year CD Frequently Asked Questions

First Internet Bank of Indiana 5 Year CD

Why it stands out: First Internet Bank of Indiana might be appealing if you’re searching for a bank that offers a variety of CD terms. The bank is also featured in our best money market account guide.

APY for 5-year CD: 4.59% APY

5-year CD early withdrawal penalty: 360 days of interest

What to look out for: First Internet Bank of Indiana compounds your interest monthly, not daily. Depending on how much money is in your CD, this may or may not make a significant difference. You can also find a bank that charges less for an early withdrawal from a 5-year CD.

First Internet Bank of Indiana Review

Popular Direct 5 Year CD

Why it stands out: Popular Direct pays a competitive rate, and it compounds interest daily.

APY for 5-year CD: 4.53% APY

5-year CD early withdrawal penalty: 730 days of simple interest

What to look out for: You’ll need at least $10,000 to open a Popular Direct CD. The bank also charges high early withdrawal penalties.

Popular Direct Review

First National Bank of America 5 Year CD

Why it stands out: First National Bank of America lets you open CDs online from anywhere in the US, and it offers a variety of terms.

You also might like First National Bank of America if you live in Lansing, Grand Rapids, or Traverse City, Michigan. It has branches in these cities.

APY for 5-year CD: 4.50% APY

5-year CD early withdrawal penalty: 540 days of interest

What to look out for: First National Bank of America has steep early withdrawal penalties for most terms. You might prefer one of the other options on our list if you are worried about CD early withdrawal penalties.

First National Bank of America Review

Crescent Bank 5 Year CD

Why it stands out: Crescent Bank has high interest rates on a variety of online CDs.

APY for 5-year CD: 4.40% APY

5-year CD early withdrawal penalty: 180 days interest

What to look out for: To open the Crescent Bank CD, you’ll need to deposit at least $1,000 in new money. New money means funds that haven’t already been deposited into a Crescent Bank account.

Crescent Bank CDs will automatically renew at the end of each term unless you call customer service to cash out your CD. 

Crescent Bank CD Review

CFG Bank 5 Year CD

Why it stands out: CFG Bank has a high interest rate on its 5-year CD. The early withdrawal penalties are also lower than some of our other top picks.

APY for 5-year CD: 4.40% APY

5-year CD early withdrawal penalty: 180 days of interest

What to look out for: CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 18-month, 36-month, or 60-month CDs. If you’d like more CD variety, you might prefer one of the other options on our list.

CFG Bank Review

Alliant 5 Year Certificate

Why it stands out: Alliant pays high rates on CDs and has reasonable early withdrawal penalties. 

APY for 5-year CD: 4.35% APY

5-year CD early withdrawal penalty: 180 days of interest

What to look out for: Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success, and Alliant will cover your $5 joining fee.

Alliant Credit Union Review

Delta Community Credit Union 5 Year CD

Why it stands out: You might Delta Community Credit Union if you prefer credit unions over banks. Delta Community Credit Union offers a high interest rate on a 5-year term and has standard early withdrawal penalties.

APY for 5-year CD: 4.35% APY

5-year CD early withdrawal penalty: 270 days of interest

What to look out for: You must qualify for membership to open a bank account at Delta Community Credit Union. You are eligible for membership if you live or work in an eligible county in Georgia; are an employee/former employee/retiree of dozens of businesses, or a member of several associations; you have a family member that is eligible for membership; or you are a non-US citizen working full-time for Delta Air Lines and live in one of several foreign countries. (You may only open a savings account in a foreign country, though.)

Delta Community Credit Union Review

Barclays 5 Year Online CD

Why it stands out: Typically, you need at least $1,000 to open a CD at most banks. Barclays could be a good choice if you want to get a 5-year CD with a lower amount, because there’s no minimum opening deposit.

APY for 5-year CD: 4.35% APY

5-year CD early withdrawal penalty: 180 days of interest

What to look out for: Barclays doesn’t have a checking account. If you want to do all your banking at one financial institution, you may want to choose a different bank that has both savings and checking.

Barclays Bank Review

Other 5-Year CDs We Considered

We looked at the following 5-year CDs as well. However, our top picks may have higher interest rates, lower minimum opening deposits, and lower early withdrawal penalties, which make them more compelling options. 

• Quontic CD: Quontic Bank’s 5-year certificate pays a lower interest rate than our top picks.
• Synchrony CD: Synchrony CDs have a low minimum opening deposit, but other financial institutions offer high rates on long-term CDs.
• Discover CD: Other financial institutions offer more competitive interest rates on 5-year CDs or lower minimum opening deposit requirements. 
• Ally High Yield CD: Ally CDs have low minimum opening deposits, but our top picks all pay higher interest rates.
• Bread Savings High-Yield CD: Bread Savings has short-term CDs with high interest rates, but its long-term CDs aren’t as competitive.
• Marcus High-Yield CD: Marcus has low minimum opening deposits on accounts, but our top picks pay higher interest rates right now.
• Pentagon Federal Credit Union Money Market Certificate: Pentagon Federal Credit Union has high interest rates for its 1-year and 18-month CDs. However, you’ll find a more competitive interest rate at one of the financial institutions we’ve featured as a top pick. 
• Bethpage Federal Credit Union Certificate Account: Bethpage Federal Credit Union has a variety of terms. However, its rates are low compared to our top picks. 
• Nationwide CD: Nationwide’s 1-year and 18-month CDs are its most appealing options, but its other terms aren’t as strong.
• VyStar Credit Union CD: Vystar Credit Union may be a good option in you live in Florida or Georgia.
• Golden 1 Credit Union CD: Golden 1 Credit Union may be worth considering if you live in California.
• Suncoast Credit Union CD: Suncoast Credit Union has solid interest rates, but our top picks offer more competitive rates right now. 
• CIT Bank Term CD: A 5-year CIT Bank CD offers a low interest rate compared to the banks on our list.
• Washington Savings Bank CD: Washington Savings Bank pays solid interest rates, but our top picks offer even higher interest rates.
• Citizens Access CD: Citizens has high interest rates on online CDs, but you’ll need a minimum of $5,000.
• BrioDirect: BrioDirect has a variety of CD terms, but its 5-year CD rate isn’t as strong as the institutions we’ve chosen.
• Sallie Mae CD: You’ll need at least $2,500. Our top picks have lower minimum opening deposits.
• Amerant CD: Amerant pays solid interest rates, but our top picks offer even higher interest rates.
• American Express CD®: American Express has a low minimum opening deposit, but our top picks pay higher interest rates.
• Live Oak Bank CD: You’ll need at least $2,500 for an initial deposit. Our top picks will let you open an account with less money upfront.
• America First Credit Union Certificate: America First Credit Union has a solid interest rate, but our top picks offer even higher rates.
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.
• Connexus Share Certificate: Connexus requires a minimum opening deposit of $5,000. Our top picks have much lower minimum opening deposits.
• TAB CD: TAB Bank has a solid interest rate, but our top picks offer even higher rates.

Bank Trustworthiness and BBB Ratings

We’ve compared each company’s Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company’s score:

CFG Bank does not have a rating because its profile is being updated.

A good BBB rating doesn’t necessarily mean that your relationship with the bank will be perfect. Talk to current customers or read online customer reviews to get a more well-rounded perspective about whether the bank may be ideal for you.