Best 5-Year CD Rates for November 2024: Lock In Returns for the Longer Term

Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

The best 5-year CD rate is 4.30% APY from Dow Credit Union.

The best 5-year CDs far outpace the national average CD rate on 5-year terms, which is 1.37% APY (Annual Percentage Yield). Generally, online banks and credit unions offer the best CD rates.

The top 5-year CDs pay high interest rates. They also might have low minimum opening deposits, low early withdrawal penalties, and strong mobile banking apps to put them over the top.

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

• Dow Credit Union 5 Year Simple CD: 4.30% APY
• America First Credit Union 5 Year Certificate: 4.25% APY
• Synchrony 5 Year CD: 4.00% APY
• Signature Federal Credit Union 5 Year Certificate: 4.00% APY
• Securityplus Federal Credit Union 5 Year Share Certificate: 4.00% APY
• BMO Alto 5 Year High Yield CD: 4.00% APY
• USALLIANCE Financial 5 Year Certificate: 4.00% APY
• MYSB Direct 5 Year CD: 3.90% APY

Compare the Best 5-Year CDs

The best 5-year CDs pay well above average CD rates for a 5-year term. We also highlight whether a CD stands out for a low minimum opening deposit and lenient early withdrawal penalties. If the bank or credit union also has other competitive CD terms, we mention them, too.

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.

5-Year CD Reviews

Dow Credit Union 5 Year Simple CD

Dow Credit Union has great rates on its 3-month simple CD and its 5-year simple CD. You might like Dow Credit Union if you're interested in building a CD ladder with various terms.

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: 4.30% APY

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

America First Credit Union 5 Year Certificate

America First Credit Union's 5-year CD offers a strong rate and a low minimum opening deposit of $500. It also offers several different CD options, such as flexible and bump-rate CDs.

Since America First is a credit union, not everyone qualifies to become a member. Membership is limited to people who work for specific companies or fields, people who have immediate family who are members, and people who live, work, worship, volunteer, or study in select parts of Oregon, Idaho, Nevada, Arizona, New Mexico, and Utah.

APY for a 5-year CD: 4.25% APY

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

America First Credit Union Review

Synchrony 5 Year CD

Synchrony offers the best rate for its 5-year CD along with several other financial institutions. Its minimum opening deposit is $0, which is very rare for a CD. If you're hoping to put a small amount of money in a CD, this might be a good choice for you.

Synchrony's early withdrawal penalties can be high, depending on the term. If you think there's a chance you'll need to withdraw your money before the end of the term length, you might want to go with another bank.

APY for 5-year CD: 4.00% APY

5-year CD early withdrawal penalty: 1 year of simple interest

Synchrony Bank Review

Signature Federal Credit Union 5 Year Certificate

You might like Signature Federal Credit Union if you're interested in banking with a credit union. It's one of the best credit unions for 5-year certificates. It also offers one of the top 3-year certificate rates.

Credit unions require membership to open an account. The easiest way to become a member is to enroll in the American Consumer Council. Then, you'll just need to open a savings account.

APY for 5-year CD: 4.00% APY

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

Signature Federal Credit Union Review

Securityplus Federal Credit Union 5 Year Share Certificate

Securityplus Federal Credit Union has a good rate on its 1-year and 5-year certificates. If you're hoping to open multiple CDs with the same financial institution, Securityplus might be a good choice for you. Securityplus is also a Black-owned credit union. If you want to support a minority depository institution, Securityplus might be a good choice for you.

As a credit union, Securityplus has membership eligibility requirements you have to meet to open an account. The easiest way to qualify to join Securityplus is to join the American Consumer Council. You can also meet the eligibility requirements by working for certain groups, living, working worshipping, or attending school in the City of Baltimore, or being a family member of another Securityplus member.

APY for 5-year CD: 4.00% APY

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

BMO Alto 5 Year High Yield CD

The BMO Alto 5 Year 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: 4.00% APY

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

BMO Savings and CD Accounts

USALLIANCE Financial 5 Year Certificate

USALLIANCE Financial offers a strong rate on its 5-year CD with a low minimum opening deposit. It also offers good no-penalty CD.

To open a bank account at the credit union, you must become a member. You may join USALLIANCE Financial if you live in a select area in Massachusetts, Connecticut, New Jersey, or New York; work for a select employment group; or become a member of the American Consumer Council, Arco of Westchester, Tread Lightly!, or Council of Community Services. 

APY for a 5-year CD: 4.00% APY

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

MYSB Direct 5 Year CD

MYSB Direct CDs pay a competitive interest rate and have a low minimum opening deposit.  For example, you can get one of the best 2-year CD rates and 5-year CD rates at the institution. 

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: 3.90% APY

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

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:

Signature Federal Credit Union has a B- rating from the BBB because it has failed to respond to two customer complaints. 

Synchrony has an NR rating from the BBB because the business is currently responding to previously closed complaints.

USALLIANCE Financial has a D- rating from the BBB because it has not responded to several complaints filed against the business.

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. 

Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have.

In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

Types of 5-Year CDs

Traditional 5-Year CDs

Traditional 5-year CDs are the most common type of CDs. All the CDs we've chosen as our top picks are traditional CDs. They generally offer higher interest rates than specialty CDs, but they're more limited. You can't add money into traditional CDs after its opened, and you can't withdraw money without having to pay early withdrawal penalties. You also can't change your interest rate after the CD opens; if your bank raises its CD rates, you'll be locked into the lower rate.

5-Year No-Penalty CDs

With traditional CDs, you'll face steep CD early withdrawal penalties if you withdraw your money before the CD's term length is up. Early withdrawal penalties are especially steep for 5-year CDs, and their longer term lengths mean there's a greater chance you'll need to withdraw your money before it matures.

With no-penalty CDs, you won't have to pay early withdrawal penalties if you withdraw funds before the end of the term length. That being said, no-penalty CDs generally offer lower interest rates than their traditional peers, and the majority of no-penalty CDs are short-term. You might not be able to find a 5-year no-penalty CD with an interest rate that fits your needs.

N0-penalty CDs sometimes put limits on how many times you can withdraw money — and how much money you can withdraw — before the end of the term. Make sure you're OK with your no-penalty CD's withdrawal terms before you commit.

5-Year Bump-Up CDs

Bump-up CDs, also known as bump-rate CDs, are CDs that let you raise your interest rate a certain number of times if your bank raises its rates during the term length. If you think rates are likely to go up during your CD term, a bump-up CD might be a good choice. But keep in mind that bump-up CDs generally offer lower interest rates than traditional CDs with the same term length. Since it's likely the Fed will lower its rates again soon, the market currently isn't great for bump-up CDs. That being said, a 5-year CD has a long enough term length that rates might still rise before it matures.

Bump-up CDs differ in how many times you can raise your rate before the CD matures. If you're interested in a bump-up CD, check to see how many times your CD lets you up your rate so you can make informed decisions on when to raise your CD rate.

What Influences the Best 5-Year CD Rates

Federal Reserve Policies

The Federal Open Market Committee, a branch of the Federal Reserve, is in charge of managing the federal funds rate. During at least eight meetings held per year, the FOMC assesses economic conditions and decides if the federal funds rate should be changed.

National CD rate trends are influenced by changes in the federal funds rate. CD rates often increase when the federal funds rate goes up, and CD rates will often decline when the federal funds rate drops.

Economic Conditions and Long-Term Outlook

The CD rate forecast for 2024 is that rates on all types of savings accounts are expected to decline. The Federal Reserve cuts interest rates for the first time in four years at the September Fed meeting. More rate cuts are anticipated toward the end of the year. However, it'll take time for CD rates to significantly decline.

Competition and Individual Offers

Banks occasionally have promotions for specific terms, including 5-year CDs. If you're looking at a promotional CD, review the requirements needed to obtain the highest rate.

Sometimes, banks will only promotional CDs for new customers or customers who have specific bank accounts. You also might be required to deposit "new money." Each bank will define what new money means in the listed requirements, but generally, it refers to money that hasn't been deposited at their financial institution. 

Should You Lock In a 5-Year CD?

While there are other terms that pay higher CD rates, the best 5-year CDs still offer good rates overall. Experts recommend keeping money in a CD term that fits your savings goals, so if you need to keep your money in a relatively low-risk place for around 5 years, these CDs are a good match. 

A 5-year CD is also a great option if you're building a CD ladder. It can help balance out short-term CDs, since national CD rates trends are likely to shift. 

When you're choosing where to open a 5-year CD, make sure to compare various financial institutions in order to seek the best CD rates. You should also think about your overall banking experience before settling on your top choice.

Even if you are currently unbanked, know that you still have options that suit your needs. Some banks let you open CDs with low minimum opening deposit requirements. You can also find banks that let you open bank accounts without a U.S. ID. The top banks for immigrants and non-U.S. citizens allow you to provide a foreign passport or Matricula Consular to open a bank account.

CD Laddering with 5-Year CDs

You can lock in a great rate for a long time with a 5-year CD, but their longer term lengths mean you won't be able to access your money for a significant amount of time. If you want to mitigate the risk that you'll have to withdraw early and incur early withdrawal penalties, you can choose to open a CD ladder instead of one 5-year CD.

CD ladders require opening multiple CDs of different term lengths with your funds instead of opening just one CD. If you were originally thinking of opening a 5-year CD with $90,000, you could instead open a 3-year CD, 4-year CD, and 5-year CD, each with $30,000. This way, you're able to access some of your money much sooner, but you're still able to lock in a great rate for a long time.

You don't need to open every CD in a CD ladder at the same bank or credit union, so you can still shop around for the best interest rates no matter where they are. That being said, opening multiple CDs at the same financial institution might be easier for you to keep track of.

5-Year CD FAQs

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:

BI

• Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
• Roger Ma, CFP® professional 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: How We Chose the Best 5-Year CDs

Business Insider's personal finance team researched over 60 banks and credit unions to find the best 5-year CD rates.

We are editorially independent, meaning that the business team does not dictate what we cover or write about. To understand how we cover and rate products, you can learn more about our editorial standards.

For all of our banking products, we follow our bank rating methodology when assigning a score. For CDs, we start by rating a CD's minimum opening deposit, customer support, mobile app ratings, ethics, interest rate, early withdrawal penalties, and available terms from zero to five. Once each category has been rated, we average all of the scores together to get the CD's final rating.

CD ratings can be anywhere from one star to five stars.  A one-star rating is the lowest score and lets you know the product needs significant improvement. A five-star rating is the highest rating possible. It shows that a product is a top-tier option for most people.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
• Savings and CD rate trends
• Budgeting
• Saving
• How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

Read more Read less

Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

Read more Read less

Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

Read more Read less