Best 5-Year CD Rates April 2024

Here are some of the best 5-year CD rates on the market today.

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Since March 2022, the Federal Reserve has raised the federal funds rate 11 times in an attempt to ease inflation. These interest rate hikes caused mortgage rates, credit card APRs and interest rates on other types of loans to go up, putting a strain on borrowers' budgets. But as interest rates rose, so did savings rates. Rates for CDs went up with the Fed hikes, and some of the highest-earning 1-year CD accounts offer APYs of over 5%, while some of the best 5-year CD rates are above 4%. 

However, as the Fed ends its rate hiking campaign, the growth of CD and high yield savings accounts rates has also come to end. Rates have been dropping ever since the Federal Reserve began holding interest rates steady. And at its March meeting, the Federal Reserve decided to hold the federal funds rate steady for the fifth consecutive time. This means that the federal funds rate, a key bank lending rate, will remain at a target range of 5.25% to 5.5%, the highest it’s been in 23 years.

Erin Bendig
Personal Finance Writer

Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.