Best 5-Year CD Rates of February 2025

The 5-year certificate of deposit (CD) is the longest-term CD that’s widely available at banks and credit unions. By opening a 5-year CD, you are guaranteed to receive a fixed interest rate for a period of five years. It’s a long commitment, but the guaranteed interest payments can be appealing, especially if interest rates fall.

The rate table below ranks CDs by the highest 5-year CD rates. Most of the CDs have terms of 60 months (five years), but the table also includes CDs with terms close to 60 months (54 months to 65 months). The filter box above the table can help you customize your results.

Why you can trust DepositAccounts
Why you can trust DepositAccounts

DepositAccounts strives to produce high-quality content that meets your needs and exceeds your expectations. Content is fact-checked to ensure accuracy and objectivity. DepositAccounts gathers hundreds of 5-year CD rates from banks and credit unions across the country to identify the best daily rates.

Trusted by

nyt logo
cnbc logo
hm logo
fox logo
consumer reports logo
and people like you
 

Best 5-year CD rates of February 2025

Compare top 5-year CD rates nationwide

Search our robust database of banks and credit unions to find your perfect account.

Location
Deposit Amount
Filters
Institution
APY
Early Withdrawal Penalty (Days)
Min. to Earn
Min. Deposit
Extra Credit Union
NCUA Insured
60 Month Fixed-Rate Certificate
5.0 Our Rating
4.83%
$500
View
Extra Credit Union
60 Month Fixed-Rate Certificate
View
5.0 Our Rating NCUA Insured
APY 4.83%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Lone Star Credit Union
NCUA Insured
60 Month CD
4.0 Our Rating
4.55%
365 Days
$500
$500
View
Lone Star Credit Union
60 Month CD
View
4.0 Our Rating NCUA Insured
APY 4.55%
Early Withdrawal Penalty (Days) 365 Days
Minimum to Earn $500
Minimum Deposit $500
Keys Federal Credit Union
NCUA Insured
60 Month Share Certificate
4.0 Our Rating
4.50%
182 Days
$500
$500
View
Keys Federal Credit Union
60 Month Share Certificate
View
4.0 Our Rating NCUA Insured
APY 4.50%
Early Withdrawal Penalty (Days) 182 Days
Minimum to Earn $500
Minimum Deposit $500
Numerica Credit Union
NCUA Insured
48 - 59 Month CD
4.3 Our Rating
4.44%
$1k
View
Numerica Credit Union
48 - 59 Month CD
View
4.3 Our Rating NCUA Insured
APY 4.44%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
L.C.E. Federal Credit Union
NCUA Insured
60 Month Share Certificate
5.0 Our Rating
4.37%
$500
View
L.C.E. Federal Credit Union
60 Month Share Certificate
View
5.0 Our Rating NCUA Insured
APY 4.37%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Copper Basin Federal Credit Union
NCUA Insured
60 Month CD
4.3 Our Rating
4.34%
$1k
View
Copper Basin Federal Credit Union
60 Month CD
View
4.3 Our Rating NCUA Insured
APY 4.34%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
First Federal Savings Bank of Mascoutah (IL)
Member FDIC
60 Month CD
4.3 Our Rating
4.32%
$1k
View
First Federal Savings Bank of Mascoutah (IL)
60 Month CD
View
4.3 Our Rating Member FDIC
APY 4.32%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Toyota Financial Savings Bank
Member FDIC
60 Month CD
4.4 Our Rating
4.32%
180 Days
$1
$1
View
Toyota Financial Savings Bank
60 Month CD
View
4.4 Our Rating Member FDIC
APY 4.32%
Early Withdrawal Penalty (Days) 180 Days
Minimum to Earn $1
Minimum Deposit $1
Credit Human
NCUA Insured
36-59 Month CD
3.8 Our Rating
4.31%
365 Days
$500
$500
View
Credit Human
36-59 Month CD
View
3.8 Our Rating NCUA Insured
APY 4.31%
Early Withdrawal Penalty (Days) 365 Days
Minimum to Earn $500
Minimum Deposit $500
Apple Federal Credit Union
NCUA Insured
59 Month Certificate Special
5.0 Our Rating
4.30%
$500
View
Apple Federal Credit Union
59 Month Certificate Special
View
5.0 Our Rating NCUA Insured
APY 4.30%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Dakota Community Bank & Trust
Member FDIC
54 Month CD Special
3.6 Our Rating
4.30%
$2.5k
View
Dakota Community Bank & Trust
54 Month CD Special
View
3.6 Our Rating Member FDIC
APY 4.30%
Early Withdrawal Penalty (Days)
Minimum to Earn $2.5k
Minimum Deposit
KS StateBank
Member FDIC
5 Year CD
3.7 Our Rating
4.30%
540 Days
$500
$500
View
KS StateBank
5 Year CD
View
3.7 Our Rating Member FDIC
APY 4.30%
Early Withdrawal Penalty (Days) 540 Days
Minimum to Earn $500
Minimum Deposit $500
Lafayette Federal Credit Union
NCUA Insured
5 Year Fixed CD
3.7 Our Rating
4.28%
600 Days
$500
$500
View
Lafayette Federal Credit Union
5 Year Fixed CD
View
3.7 Our Rating NCUA Insured
APY 4.28%
Early Withdrawal Penalty (Days) 600 Days
Minimum to Earn $500
Minimum Deposit $500
Citizens Bank & Trust Company (KY)
Member FDIC
5 Year CD
5.0 Our Rating
4.25%
$500
View
Citizens Bank & Trust Company (KY)
5 Year CD
View
5.0 Our Rating Member FDIC
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Credit Union of Atlanta
NCUA Insured
60 Months Share Certificate
5.0 Our Rating
4.25%
$500
View
Credit Union of Atlanta
60 Months Share Certificate
View
5.0 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Next
On This Page

What’s a good 5-year CD rate now?

A good CD rate is one that’s well above the average CD rate. When looking at CDs, two types of averages should be considered: the national average and the online average.

The national average includes CD rates from banks and credit unions that primarily operate through their physical branch offices. This is the vast majority of banks and credit unions.

Meanwhile, the online average only includes CD rates from banks that operate without physical branches. All transactions at these banks occur online, through mobile apps or by phone. Because online banks don’t have the cost of maintaining a branch network, they can offer much higher deposit rates.

National average 5-year CD rates

The average national 5-year CD rate is 2.08% for banks and 2.95% for credit unions as of June 2024.

Average online 5-year CD rate

The average online 5-year CD rate is 3.82% as of August 2024.

Where you can find the best 5-year CD rates

High 5-year CD rates are irrelevant if you can’t trust the institution. Thus, only federally insured banks and credit unions should be considered in a search for the best 5-year CD rates. The Federal Deposit Insurance Corp. (FDIC) provides federal deposit insurance for banks, and the NCUA provides it for credit unions. Federal insurance is backed by the full faith and credit of the U.S. government.

Online-only banks often have the highest 5-year CD rates. They can afford to pay higher rates since they don’t have the overhead of a branch network.

Brick-and-mortar banks typically have lower rates than online banks, but sometimes, they offer CD specials that can have rates comparable to online bank CD rates. CD specials may have terms slightly shorter or longer than standard CD terms, such as 59 months. They may also require new money, which comes from your account at another bank.

Credit union CDs often have higher rates than bank CDs. As not-for-profit institutions that are taxed less than banks, credit unions can afford to pay higher CD rates. Credit unions typically have different names for their CDs, such as share certificates. Like banks, credit unions also offer CD specials, which often have the best rates.

Key factors besides the highest CD rate

The CD with the highest rate may not be the best option for you. You might want to consider other factors in addition to the rate:

Tips on opening and managing a 5-year CD

Once you decide on a CD, be careful while opening and managing the CD to avoid any unpleasant surprises. Check out the tips below to ensure that your CD experience runs smoothly:

Pros and cons of a 5-year CD

A 5-year CD can help you save for medium-term goals. It can also be useful as a part of your investment savings to provide stability and safety. Here are the pros and cons of a 5-year CD:

Pros

  • Very safe: When the CD is directly held at FDIC-insured banks or NCUA-insured credit unions, the principal and all accrued interest are protected up to the insurance limits.
  • Relatively high interest rate: The 5-year CD generally has higher interest rates than savings accounts and shorter-term CDs. There have been times when this wasn’t true, but it has been the case for the majority of the last few decades.
  • Rate is typically fixed: The interest rate for 5-year CDs is typically fixed for the entire term, which is a benefit when interest rates are falling.
  • Predictable returns: Banks often allow CD interest to be paid out on a regular basis. This provides a predictable source of income for the entire CD term.
  • Forced savings: The early withdrawal penalty discourages using the principal for spending. That helps you save more.

Cons

  • Early withdrawal penalty: Accessing the principal before the CD matures can result in losing part or all of the accrued interest. It can even potentially reduce the principal.
  • Interest earned taxed as ordinary income: If the CD is held in a taxable account, interest earnings are taxed as ordinary income. This is a disadvantage compared to stocks and other investment options. Stock returns come from capital gain and dividends, and they are often subject to a lower tax rate than ordinary income.
  • Opportunity cost if interest rates rise: If interest rates rise after you open a CD, your money is locked up, and you may miss out on earning higher rates.
  • May not keep up with inflation: CD rates are often below the inflation rate. That’s especially the case for a CD’s after-tax rate of return. Thus, you may actually be losing money from a CD based on a real rate of return that factors in inflation. Other investments like stocks and stock mutual funds carry risk, but they have a history of long-term rates of returns above inflation.
  • Less flexibility compared to savings accounts: Unlike savings accounts, CDs only allow an initial deposit. Additional deposits are not allowed during the term of the CD. To add more money, opening a new CD would be necessary.
  • Risk of forgetting CD maturity date: CDs are often set up by banks to automatically renew into a new CD at maturity. That new CD will often have a lower rate. If you forget about maturity until after the CD grace period expires, you may become locked into a low-rate CD.

Alternatives to a 5-year CD

The alternatives to a 5-year CD can be grouped into two categories. The first category includes other types of bank accounts, and the second includes investment accounts.

Note that the only alternatives included below are those that, like a CD, have no principal risk if held to maturity.

Other bank accounts:

Investment accounts:

Frequently asked questions (FAQs)

What is a CD?

A certificate of deposit (CD) is a savings product offered by banks and credit unions that provides a set interest rate. All CDs have a term period that can range from one month to 10 years. The CD is opened with an initial deposit. During the term, interest is earned, which is either added back to the CD or paid out on a regular basis. Accessing the CD principal before maturity results in an early withdrawal penalty. At the end of the term, the CD principal and all interest earned are available for withdrawal.

What if I need to access my CD money early?

If you need access to any part of a traditional CD's initial deposit, or principal, before maturity, the bank typically allows the withdrawal but charges an early withdrawal penalty. The penalty is usually a certain number of months of interest that the CD has been earning.

Sometimes, the bank may allow a partial withdrawal of the principal and apply the penalty only on the interest earned on the amount withdrawn. Other times, only an early full withdrawal and CD closure are allowed, in which case the penalty includes the interest earned on the entire principal.

How do I use 5-year CDs to build a CD ladder?

The basic method to build a CD ladder with 5-year CDs starts with dividing a deposit into five equal parts. Each part is used to open a CD. The five CDs purchased have 1-, 2-, 3-, 4- and 5-year terms.

When each CD matures, the money is then reinvested into a new 5-year CD. So after the 4-year CD matures, all five CDs will have 5-year terms. Then, each year, one of the five 5-year CDs will mature, which provides yearly access to a fifth of the total amount without any penalty.

Will a jumbo 5-year CD have a higher rate?

Jumbo CDs are CDs that have large minimum deposit requirements, ranging from $10,000 to $250,000. Banks and credit unions may offer higher interest rates on their jumbo CDs. However, many banks don’t offer higher rates for larger CD deposits, and sometimes, the highest CD rate for a region is from a bank that offers CDs with only small minimum deposit requirements.

Are 5-year CD rates going up?

In 2023 and 2024, 5-year CD rates have generally been flat, with some small declines. Even though the Federal Reserve increased its benchmark rate a full percentage point in the first half of 2023, banks generally chose not to raise long-term CD rates. The banks were concerned that interest rates would fall in future years and didn’t want to lock themselves into paying a high rate long-term.

With expectations growing that the Fed will lower its benchmark rate in the second half of 2024 and in 2025, 5-year CD rates are likely to fall for the rest of 2024 and into 2025.

Why are 5-year CD rates lower than 1-year CD rates?

In 2023 and 2024, long-term CDs, such as 5-year CDs, generally had lower rates than short-term CDs with terms of one year and under. During this time, the markets expected interest rates to be much lower after a couple of years. These market expectations first caused long-term Treasury securities, such as the 10-year Treasury note, to have lower yields than shorter-term Treasury securities, such as the 1-year Treasury bill. This inverted yield curve was then adopted by the banks.

How can interest be paid for a 5-year CD?

The best banks provide multiple options for paying CD interest. The basic option is to have the interest added back to the CD. Another common option is to have the interest paid out to the customer by a check, ACH transfer or internal transfer. The regular interest payouts can be monthly, quarterly or yearly. Investors who choose 5-year CDs often want regular interest payments to supplement their income.

Will I owe taxes each year on a 5-year CD?

Yes, you will owe taxes each year on the interest earned from a 5-year CD. This is even the case if interest is added back to the CD and not paid out. The interest earned on a CD that’s in a taxable account is subject to federal income tax, and it can also be subject to state and local income tax. Interest is considered earned when it’s credited to your account. Most banks credit CD interest monthly, quarterly or annually, and this results in annual tax liability.

How much interest will be earned from a 5-year CD?

For a traditional CD with a fixed interest rate, it’s easy to calculate the total interest that will be earned when the 5-year CD matures. If interest is added back to the CD, the total interest earned can be calculated based on the initial deposit and the annual percentage yield (APY) of the CD. For a five-year period, annual compounding increases the total interest so it's larger than just the initial deposit multiplied by the APY and multiplied by five. This Compound Interest Calculator can be used to determine the exact amount of total interest that will be earned.

What are the risks of a 5-year CD?

If you need some or all of the initial deposit back from the CD before it matures, you will be charged an early withdrawal penalty that may reduce the principal. At the very least, the penalty will reduce the interest you earn from the CD.

There’s also a risk of missing out on other higher-rate investment alternatives. One higher-rate alternative could be another CD, which could be the case if interest rates rise during the 5-year term.