The best 5-year CD rates for December 2022
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As of December 2022, the national average APY (Annual Percentage Yield) on a 5-year CD is 0.98%, according to the FDIC. However, the best 5-year CD rates offer at least 4.35% APY right now.
A 5-year CD may be ideal if you don’t need access to some of your savings for a few years. Here are our top picks for 5-year CDs.
Annual Percentage Yield (APY)
Minimum deposit
Standout feature
Annual Percentage Yield (APY)
Minimum deposit
Standout feature
Annual Percentage Yield (APY)
Minimum deposit
Standout feature
Annual Percentage Yield (APY)
Minimum deposit
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Bread Savings High-Yield CD
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Bread Savings High-Yield CD
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Why it stands out: Bread Savings pays higher CD rates than what you would earn at many brick-and-mortar banks or online banks. Its 5-year CD, in particular, stands out for its competitive rate.
APY for a 5-year CD: 4.75% APY
5-year CD early withdrawal penalty: 365 days of interest
What to look out for: The minimum opening deposit for Bread Savings CDs is $1,500 which is a bit steep compared to other banks.
Bread Savings is also an online-only bank with a high-yield savings account and CDs. It doesn’t have a checking account or ATM network.
CFG Bank Certificate of Deposit
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CFG Bank Certificate of Deposit
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Read our review
APY for 5-year CD: 4.60% APY
5-year CD early withdrawal penalty: 180 days of interest
What to look out for: Limited term options. CFG Bank doesn’t have many CD terms to choose from — there are only 12-month, 13-month, 18-month, 36-month, or 60-month CDs.
First Internet Bank of Indiana Certificate of Deposit
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First Internet Bank of Indiana Certificate of Deposit
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Why it stands out: First Internet Bank of Indiana offers a high interest rate on its 5-year CD.
APY for 5-year CD: 4.39% APY
5-year CD early withdrawal penalty: 360 days of interest
What to look out for: First Internet Bank of Indiana has high early withdrawal penalties. If you find that the early withdrawal penalties are too steep, you might prefer one of our other top picks.
First National Bank of America Certificate of Deposit
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First National Bank of America Certificate of Deposit
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Why it stands out: First National Bank of America has online CDs you can open from anywhere in the US. Its 5-year CD offers a high interest rate and has a standard minimum opening deposit.
APY for 5-year CD: 4.35% APY
5-year CD early withdrawal penalty: 540 days of interest
What to look out for: The early withdrawal penalty for a 5-year CD is high compared to other financial institutions.
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.
- Crescent Bank CD: Crescent Bank has a solid interest rate for a 5-year CD, but our top picks offer higher interest rates right now.
- Synchrony CD: Synchrony is a good choice if you’d like to open an account with $0. But our top picks might be more appealing if you’re strictly searching for a high interest rate on a 5-year CD.
- Barclays Online Certificate of Deposit: Barclays might be worth considering if you’d like to open a CD with a low minimum opening deposit. But, its CD rates aren’t as competitive as institutions we’ve included in our list.
- Capital One 360 Certificate of Deposit®: Capital One 360 CDs have a $0 minimum opening deposit. Still, our top picks pay higher interest rates right now.
- Alliant Certificate: Alliant has a strong 3-year CD, but other online banks offer even higher rates for 5-year CDs.
- Marcus by Goldman Sachs 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.
- Delta Community Credit Union Certificate of Deposit: Delta Community Credit Union pays solid interest rates, but our top picks offer even higher interest rates.
- VyStar Credit Union Certificate of Deposit: Vystar Credit Union may be a good option in you live in Florida or Georgia.
- Golden 1 Credit Union Certificate of Deposit: Golden 1 Credit Union may be worth considering if you live in California.
- Ally High Yield CD: Ally CDs might be a good choice if you’d like to get a CD with a $0 minimum opening deposit or low early withdrawal penalties. But its CD rates are currently lower than any of the banks on our list.
- Suncoast Credit Union CD: Suncoast Credit Union has solid interest rates, but our top picks offer more competitive rates right now.
- Popular Direct CD: Popular Direct pays a high interest rate, but you’ll need a minimum of $10,000.
- 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 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.
- BMO Harris CD: BMO Harris requires a minimum opening deposit between $1,000 to 5,000 to open a CD.
- 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.
- Discover CD (Member FDIC): Discover pays solid interest rates, but you’ll need a minimum of $2,500.
- 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:
| Institution | BBB rating |
| First Internet Bank of Indiana | A+ |
| CFG Bank | F |
| Bread Savings | NR |
| First National Bank of America | A+ |
CFG Bank has an F rating because it has received and hasn’t responded to three customer complaints on the BBB website. Bread Savings has an NR(“No Rating) grade because its profile is currently being reviewed by the BBB.
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.
Bread Savings is the only institution on our list that has been involved in public controversy.
In July 2022, the BBB opened an investigation into Bread Financial because it received customer complaints stating they could not access Comenity credit card accounts. According to the BBB website, Bread Financial said that due to its rebranding and software system, an upgrade was preventing customers from accessing their accounts. Bread Savings posted an FAQ on their website to explain the situation.
Why trust our recommendations?
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
Frequently asked questions
A CD is a type of saving account that has a fixed interest rate for a specific period of time. With a 5-year CD, you’ll deposit your money for 60 months. You have the option to renew your CD at the end of the five-year period, or close the account and pocket the money.
How does a 5-year CD work?
Most CDs lock in your rate for the entire term. For example, if you open a 5-year CD at a 4.60% APY, you’ll earn 4.60% for the entire five years. If you renew your CD after it matures, you’ll earn the new rate available in five years.
Some institutions may offer unique CDs called step-up CDs or Raise Your Rate CDs. These CDs have a variable interest rate and allow your rate to change.
Which is CD should I choose: a 1-year, 3-year, or 5-year CD?
Choosing the right CD for you may ultimately depend on your preferences and goals.
For example, if your priority is earning a high interest rate, 3-year CDs and 5-year CDs generally offer higher rates than 1-year CDs. However, with a 3-year or 5-year CD, you could ultimately miss out on higher rates in the long run.
If you select a short-term CD, you may have the chance to snag a better interest if rates are up in a year. But on the other hand, you could avoid lower rates with a 3-year or 5-year term if rates drop later.
Many experts recommend CD laddering. With this strategy, you open multiple CDs with different term lengths so you can take advantage of higher rates with longer terms, but also access some of your money earlier. For instance, you might open 1-year, 3-year, and 5-year CDs at the same time, which means you’ll get some of your money back in one year, then more in three years, then more in five years.
Which is better, a 5-year CD or a high-yield savings account?
You may prefer a high-yield saving account over a CD if you want quick access to your money. If you need access to money from your 5-year CD before it matures, then you’ll have to pay a fee. In comparison, you should be able to access funds from your savings account regularly.
You can also continuously add money to your savings account, whereas most 5-year CDs block you from making additional deposits after opening the account.
If you’re looking for ways to make more interest on your money, you might want to explore both savings accounts before making your decision.
Generally, online banks pay higher interest rates on 5-year CDs. On the other hand, a CD also locks in your rate for the entire term. If rates are dropping, this could make the CD a better choice, because your savings account interest could decrease over the next few months. If rates are rising, the savings account might be a better fit, because your rate could go up. Either way, there’s a good chance rates will fluctuate over a five-year period.
Which is better, a 5-year CD or a money market account?
The best option for you may depend on how much money you have for an initial deposit. Many banks require higher deposits for money market accounts than CDs, which could affect your decision.
It’s also good to remember that you can add more funds to your money market account over time with a debit card or paper checks. If you open a CD, you’ll only be allowed to make a deposit when you first open the account or when it’s renewed. You’ll also have to pay an early withdrawal penalty on most CDs, if you need to take out money before the end of a term.
Is a 5-year CD a good investment?
CD are a type savings account, and aren’t generally considered investments. Your potential for losses and gains — your risk — is much more limited. Because the stock market is risky, experts generally don’t advise investing money you’ll need in the next five years. In the case of a stock market drop, you wouldn’t have time to make up your losses.
If you’re comfortable parting with your money for longer and want to take more risk with your money, then you may want to invest in the stock market. Brokerage accounts, for example, are useful tools to build long-term wealth, but can’t guarantee a given return like a CD can. Tax-advantaged retirement accounts, like a 401(k) or IRA, are other options you can consider as well.
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