Best 5-Year CD Rates for April 2024 (Up to 4.55%) (2024)

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The national average CD rate on a 5-year term is 1.38% APY (Annual Percentage Yield). However, the best 5-year CD rate is 4.55% APY. There are two banks that offer this rate right now — First Internet Bank of Indiana and First National Bank of America.

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.

Best 5-Year CD Rates

• First Internet Bank of Indiana 5 Year CD: 4.55% APY
• First National Bank of America 5 Year CD: 4.55% APY
• Dow Credit Union 5 Year Simple CD: 4.50% APY
• BMO Alto 5 Year High Yield CD: 4.50% APY
• Pelican State Credit Union 5 Year Share Certificate: 4.49% APY
• Department of Commerce Federal Credit Union 5 Year Share CD: 4.34% APY
• Lafayette Federal Credit Union 5 Year Certificate: 4.32% APY
• MYSB Direct 5 Year CD: 4.31% APY
• Quontic 5 Year CD: 4.30% APY
• Popular Direct 5 Year CD: 4.30% APY

These are our picks for the best 5-year CD rates. Our top picks for CDs are protected by FDIC or NCUA insurance. 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

5-Year CD FAQs

5-Year CD Reviews

First Internet Bank of Indiana 5 Year CD

The 5-year First Internet Bank of Indiana CDpays a higher interest rate than most brick-and-mortar and online banks.

First Internet Bank of Indiana also might be appealing if you're looking for a money market account.

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.

APY for 5-year CD: 4.55% APY

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

First Internet Bank of Indiana Review

First National Bank of America 5 Year CD

First National Bank of America CDs are available online from anywhere in the US, and come in 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.

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.

APY for 5-year CD: 4.55% APY

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

First National Bank of America Review

Dow Credit Union 5 Year Simple CD

Dow Credit Union has great rates on several of its CDs, and it recently added 4-year and 5-year CDs that also offer great rates.

Dow Credit Union has limits on who can become a member. However, it makes it easier for new people to join than most credit unions do. The easiest way to become a member of Dow Credit Union is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current credit union member.

APY for 5-year CD:4.50% APY

5-year CD early withdrawal penalty: 365days of interest

BMO Alto 5 Year High Yield CD

The BMO Alto High Yield CD may be a good choice if you'd like to open an online CD with a $0 minimum opening deposit. BMO Alto is the online-only division of BMO Bank, and its accounts are available nationwide.

BMO Alto doesn't have a mobile app. Also, you can't go to a BMO Bank location to get customer support for BMO Alto accounts. That said, customer service for BMO Alto is available 24/7 by phone.

APY for 5-year CD: 4.50% APY

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

BMO Savings and CD Accounts

Pelican State Credit Union 5 Year Share Certificate

Pelican State Credit Union is a great option if you're looking for high CD rates. In addition to paying a competitive 5-year CD rate, it has one of the best 2-year CD rates.

You'll need at least $500 to open an account, which is less than other financial institutions require. Usually, you need at least $1,000 to open a CD.

Only credit union members may open a Pelican State Credit Union share certificate. The easiest way to join is to become a member of Arc Baton Rouge ($5 membership fee), the Parents Association of Northwest Support and Services ($5 membership fee), or the Pinecrest Parents Association ($20 membership fee).

You can also join if you live in Rapides Parish, St. Landry Parish, or St. Tammany Parish in Louisiana or work for a participating employer.

If you prefer low CD early withdrawal penalties, one of our other top picks may be more suitable.

APY for 5-year CD:4.49% APY

5-year CD early withdrawal penalty: 365 days of interest

Department of Commerce Federal Credit Union 5 Year Share CD

The Department of Commerce Federal Credit Union 5 Year CD has a $500 minimum deposit. That's low compared to other banks, which usually require at least $1,000 to open an account.

Department of Commerce FCU allows all United States citizens and residents to open an account. The easiest way to become a member regardless of where you live in the U.S. is to join the American Consumer Council.

APY for a 5-year CD: 4.34% APY

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

Lafayette Federal Credit Union 5 Year Certificate

Lafayette Federal Credit Union pays a high interest rate on a 5-year term. It also offers competitive rates for its other certificate terms.

You only need $500 to open an account. Usually, you'll need at least $1,000 to open a CD at a financial institution.

To open a certificate you must meet membership requirements. You can join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership.

APY for 5-year CD:4.32% APY

5-year CD early withdrawal penalty:600 days of interest

MYSB Direct 5 Year CD

MYSB Direct CDs pay a competitive interest rate and have a low minimum opening deposit.

M.Y. Safra Bank is a New York-based financial institution that serves customers nationwide and its online-only division is MYSB Direct.

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference.

APY for 5-year CD: 4.31% APY

5-year CD early withdrawal penalty: 90 days of interest

Quontic 5 Year CD

Quontic Bank has a 5-year CD paying 4.30% APY and you'll only need a minimum of $500 to get started.

Quontic also offer a high-yield savings account, rewards checking account, money market account, and 6-month, 1-year, 2-year, and 3-year CDs.

You might prefer another online bank if you're concerned about early withdrawal penalties, though. If you take out money from a 5-year term before it reaches maturity, there's a steep penalty.

APY for a 5-year CD:4.30% APY

5-year CD early withdrawal penalty: 2 years of interest

Quontic Bank Review

Popular Direct 5 Year CD

Popular Direct CDs pay a competitive rate, and compound interest daily.

You'll need at least $10,000 to open a Popular Direct CD. The bank also charges high early withdrawal penalties.

APY for 5-year CD: 4.30% APY

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

Popular Direct Review

Other5-YearCDsWeConsidered

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.

• Bread Savings High-Yield CD: Bread Savings has a 5-year CD paying 4.15% APY. Our top picks have more competitive 5-year CD rates. You'll also need at least $1,500 to open a CD at Bread Savings, which is steep.
• Barclays Online CD: Barclays has low minimum opening deposits on accounts, but our top picks pay higher interest rates right now.
• Crescent Bank CD: Other banks offer higher 5-year CD rates right now.
• United States Senate Federal Credit Union 5 Year Smart Share Certificate: The 5-year CD rate from this credit union recently dropped. Our top picks have even more competitive options right now.
• Alliant Credit Union CD: Our top picks offer the potential to earn a higher interest rate for a 5-year term than Alliant does.
• Latino Community Credit Union Share Certificate: Latino Community Credit Union has high CD rates on short-term share certificates, but its long-term rates aren't as competitive as our top picks.
• Edward Jones CD: Edward Jones has brokered CDs with interest rates much higher than the national average. However, you must have a brokerage account or bank account to open a CD. We also didn't include it on our list because brokered CDs work differently than traditional CDs — for example, you'll have to sell on a secondary market if you no longer want the CD for the full term.
• Delta Community Credit Union CD: Delta Community Credit Union has a 5-year CD paying 4.00% APY, which is just short of the rates on our list.
• CFG Bank CD: CFG pays solid interest rates on CDs, but you'll earn higher rates with our top picks.
• Synchrony Bank 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.
• PenFed 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 High-Yield CD: 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 National Bank (Member FDIC) 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.
• NBKC CD: NBKC offers competitive interest rates on long-term CDs, but our top picks offer even higher rates.
• Connexus Credit Union Share Certificate: Connexus requires a minimum opening deposit of $5,000. Our top picks have much lower minimum opening deposits.
• TAB Bank CD: TAB Bank has a solid interest rate, but our top picks offer even higher rates.
• Marcus High-Yield CD: Marcus offers solid rates on 5-year CDs, but its rates aren't quite high enough to match our top picks.
• America First Credit Union 5 Year Certificate: America First Credit Union offers great rates on several of its CDs, but its 5-year CD rates weren't quite strong enough to match our top picks.

BankTrustworthinessandBBBRatings

We've compared each company'sBetter Business Bureauscore. 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:

Department of Commerce Federal Credit Union has an NR grade because the BBB says it has services that are outside the scope of what the BBB reviews.

MYSB Direct currently has an NR (No Rating) grade because the BBB doesn't have enough information to provide a rating.

BMO has been involved in one recent public controversy. In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO bought M&I Bank in 2011.

Popular Bank has been involved in two recent public controversies. In 2023, the Federal Reserve Board required Popular Bank to pay a $2.3 million fine, claiming it processed Payment Protection Program loans even though potential instances of fraud were detected and not reporting the potential fraud in a timely manner.

In 2022, the US Department of Treasury's Office of Foreign Assets Control requiredBanco Popular de Puerto Rico— the bank's Puerto Rico locations — to payover $255,000 in a settlementthat accused the bank of violating Venezuela Sanctions Regulations when processing transactions with two Venezuelan government employees.

Why You Should Trust Us: 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, Business Insider consulted four experts:

• Tania Brown, CFP, vice president of coaching strategy at OfColor
• Roger Ma, CFP with lifelaidout®and author of"Work Your Money, Not Your Life"
• Sophia Acevedo, banking editor, Business 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.