The Best 5-Year CDs — Earn Up to 4.35%

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Having an effortless option to store your money and a guaranteed rate of return can give you peace of mind with rising everyday costs. With the best 5-year CD rates, you can earn a healthy rate.

The good news is that many rates are still high, allowing you to earn much more than you would with a savings account at a traditional bank. And with inflation rising again, having a long-term option with returns outpacing inflation is imperative.

That's why I am going to show you where to find the best five-year CD rates and how much you can earn with one.

Top 5-year CD rates

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Account	APY	Min. Deposit
Sallie Mae	4.35%	$2,500
Bread Savings	4.25%	$1,500
America First Credit Union	4.10%	$500
SchoolsFirst Federal Credit Union	3.90%	$500
Marcus by Goldman Sachs	3.80%	$500

Why open a 5-year CD?

A CD offers a significant advantage over a savings account: It comes with a fixed interest rate. That means when you sign up for an account, the rate you have remains through the term.

When the Fed cuts rates, it impacts savers with lower returns. The only way to maintain higher returns is by locking in a CD when the rates are higher, as they are now.

Pros and cons of a 5-year CD

Pros:

CDs offer guaranteed returns on deposits
Fixed rates on CDs mean that even if rates fall, the APY on your account will remain the same, as it's fixed
Most CD accounts from banks and credit unions are federally insured for up to $250,000
Since you can only withdraw funds when your CD account matures, you won't be tempted to spend your money elsewhere

Use the tool below — powered by Bankrate — to compare CD rates:

Cons:

If you want to access your money before your term expires, the penalty fee might negate the interest you earn.
Upon maturity, the purchasing power of the money earned from your CD might be less due to inflation.
You could earn more money with other investment opportunities.

Use the tool below, powered by Bankrate, to compare financial services and find an option that fits your goals:

How much can I earn with a 5-year CD?

I'll use our top pick, Sallie Mae, for this example. It currently offers an APY of 4.35%. Here's how much you can earn with the following deposits over five years:

$10,000: $2,2372.64 in earned interest
$25,000: $5,931.59 in earned interest
$50,000: $11,863.18 in earned interest
$100,000: $23,726.37 in earned interest

A tip: If you have $50,000 or more you're looking to save, consider a jumbo CD instead. They offer APYs as high as 4.35% with shorter maturity periods, so if you're on the fence about locking up your money for five years, this is a smart alternative.

A five-year CD can give you peace of mind that you're earning a guaranteed rate of return. You won't have to contend with market volatility, and if you choose one of these top accounts, your returns will outpace the current inflation rate.

Sean is a veteran personal finance writer, with over 10 years of experience. He's written finance guides on insurance, savings, travel and more for CNET, Bankrate and GOBankingRates.