Best 5-Year CD Rates of May 2025

The five-year certificate of deposit (CD) is the longest-term CD that’s widely available at banks and credit unions. By opening a five-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 five-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.

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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
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
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
4.1 Our Rating
4.34%
$1k
View
Copper Basin Federal Credit Union
60 Month CD
View
4.1 Our Rating NCUA Insured
APY 4.34%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Tulare County Federal Credit Union
NCUA Insured
60 Month CD
3.8 Our Rating
4.34%
180 Days
$1k
$1k
View
Tulare County Federal Credit Union
60 Month CD
View
3.8 Our Rating NCUA Insured
APY 4.34%
Early Withdrawal Penalty (Days) 180 Days
Minimum to Earn $1k
Minimum Deposit $1k
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
Knoxville TVA Employees Credit Union
NCUA Insured
60 Month CD
5.0 Our Rating
4.25%
$500
View
Knoxville TVA Employees Credit Union
60 Month CD
View
5.0 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
MIDFLORIDA Credit Union
NCUA Insured
60 Month Certificate Special
4.1 Our Rating
4.25%
$1k
View
MIDFLORIDA Credit Union
60 Month Certificate Special
View
4.1 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Mountain America Credit Union
NCUA Insured
60 Month Certificate
4.0 Our Rating
4.25%
365 Days
$500
$500
View
Mountain America Credit Union
60 Month Certificate
View
4.0 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days) 365 Days
Minimum to Earn $500
Minimum Deposit $500
Transwest Credit Union
NCUA Insured
60 Month CD
3.0 Our Rating
4.25%
$1k
$1k
View
Transwest Credit Union
60 Month CD
View
3.0 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit $1k
Utah Community Credit Union
NCUA Insured
60 Month CD
4.0 Our Rating
4.25%
$500
$500
View
Utah Community Credit Union
60 Month CD
View
4.0 Our Rating NCUA Insured
APY 4.25%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit $500
Community Bank & Trust (GA)
Member FDIC
60 Month CD
5.0 Our Rating
4.24%
$500
View
Community Bank & Trust (GA)
60 Month CD
View
5.0 Our Rating Member FDIC
APY 4.24%
Early Withdrawal Penalty (Days)
Minimum to Earn $500
Minimum Deposit
Rivertrust Federal Credit Union
NCUA Insured
60 Month CD
4.1 Our Rating
4.22%
$1k
View
Rivertrust Federal Credit Union
60 Month CD
View
4.1 Our Rating NCUA Insured
APY 4.22%
Early Withdrawal Penalty (Days)
Minimum to Earn $1k
Minimum Deposit
Canyon View Credit Union
NCUA Insured
60 Month Add-On CD
5.0 Our Rating
4.20%
$10
View
Canyon View Credit Union
60 Month Add-On CD
View
5.0 Our Rating NCUA Insured
APY 4.20%
Early Withdrawal Penalty (Days)
Minimum to Earn $10
Minimum Deposit
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What’s a good 5-year CD rate now?

A good CD rate is one that’s well above the average CD rate. 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.

National average 5-year CD rates

The national average rates for five-year certificates of deposit (CDs) and share certificates from credit unions can fluctuate over time. The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) regularly publish the latest average rates on their websites.

Where you can find the best 5-year CD rates

High five-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 five-year CD rates. The 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 five-year CD rates. They can afford to pay higher rates because 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. 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, such as:

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 five-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 five-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 five-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 five-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 regularly. 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 with stocks and other investments. Stock returns come from capital gains 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. That means you may be losing money from a CD based on a real rate of return that factors in inflation. Other investments, such as stocks and stock mutual funds, carry risk, but they have a history of long-term rates of return above inflation.
  • Less flexibility compared with 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 five-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 five-year CDs to build a CD ladder?

The basic method to build a CD ladder with five-year CDs starts with dividing a deposit into five equal parts. Each part is used to open a CD. The five CDs purchased have one-, two-, three-, four- and five-year terms.

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

Will a jumbo five-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 five-year CD rates going up?

The rate environment has been shifting since 2024, and rates have generally been falling or flat. The Fed lowered rates by a full percentage point at the end of 2024, and expectations for further rate changes remain uncertain because of an unsteady economic environment in 2025. CD rates still remain relatively high, in the 4% range, but that could change as the year moves on.

How can interest be paid for a five-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 five-year CDs often want regular interest payments to supplement their income.

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

Yes, you will owe taxes each year on the interest earned from a five-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 be subject to state and local income taxes. 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 five-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 five-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 five-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 five-year term.