The Best 5-Year CD Rates Now
The top 5-year CD rates offer up to 4.15%, helping investors reach long-term savings goals.
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. The more challenging news is that inflation is at 4.20%, meaning none of the CDs making this list will keep pace with inflation.
That said, a five-year CD can still be an integral part of your financial strategy, especially if you have longer-term savings goals. Here's a breakdown of the top rates and how much you can earn from one.
Top 5-year CD rates
Account | APY | Min. Deposit |
4.15% | $2,500 | |
4.10% | $500 | |
3.90% | $500 | |
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
You can use the tool below — powered by Bankrate — to compare CD rates below.
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. See a few options below:
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 4.15%. Here's how much you can earn with the following deposits over five years:
- $10,000: $2,254.52 in earned interest
- $25,000: $5,636.30 in earned interest
- $50,000: $11,272.61 in earned interest
- $100,000: $22,545.22 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 4.15% with shorter maturity windows, so if you're on the fence about locking your money up for five years, this is a smart alternative.
Bottom line on the best 5-year CD rates
Now is the time to lock in a great return, while rates are still high. The Fed won't be cutting rates any time soon, giving savers more time to secure a higher APY.
Locking in a rate now ensures you're taking steps to reach your savings goals, risk-free.
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