Best 5-Year CD Rates for December 2024

Popular Direct – 4.25% APY

Term (months): 60
Minimum deposit: $10,000
Early withdrawal penalty: 24 months of interest
Overview: Popular Direct is the online-only arm of Popular Bank, the U.S. banking subsidiary of Popular Inc., which was founded in 1893 and serves banking customers in the U.S., Puerto Rico, and the Caribbean. It is headquartered in New York.
Rate verified as of Dec. 24, 2024

Signature Federal Credit Union – 4.20% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 30 months of interest
Overview: Anyone can join Signature Federal by agreeing to a free membership in the nonprofit American Consumer Council and holding at least $5 in a savings account. Headquartered in Alexandria, Virginia, the credit union has been around since 1970.
Rate verified as of Dec. 24, 2024

Credit Human – 4.11% APY

Term (months): 36–59 months or 60–83 months
Minimum deposit: $500
Early withdrawal penalty: Up to 24 months of interest ($50 minimum)
Overview: Anyone can join Credit Human by agreeing to a complimentary membership in the nonprofit American Consumer Council and keeping at least $5 in a member savings account. The credit union is headquartered in San Antonio and dates back to 1935.
Rate verified as of Dec. 24, 2024

Synchrony Bank – 4.00% APY

Term (months): 60
Minimum deposit: Any amount
Early withdrawal penalty: 12 months of interest
Overview: In addition to being the largest U.S. provider of private-label credit cards, Synchrony Bank is an online-only bank offering consumer deposit accounts. Synchrony Bank was founded in 1932 and its headquarters are in Connecticut.
Rate verified as of Dec. 24, 2024

Dow Credit Union – 4.00% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 12 months of interest
Overview: Based out of Midland, Michigan, anyone can join Dow Credit Union by making a $10 donation to the Midland Area Community Foundation scholarship fund during the membership application process. Dow Credit Union dates back to 1937 when it was founded to serve employees of Dow Chemical Company.
Rate verified as of Dec. 24, 2024

USAlliance Financial – 4.00% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 12 months of interest
Overview: Anyone can join USAlliance by agreeing to a free membership in the nonprofit American Consumer Council and keeping at least $1 in a savings account. Established in 1966 to serve IBM employees, USAlliance is headquartered in Rye, New York.
Rate verified as of Dec. 24, 2024

KS State Bank – 4.00% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 18 months of interest
Overview: Established in 1969, KS State Bank operates six branches in Kansas and one in Phoenix, while serving online customers nationwide.
Rate verified as of Dec. 24, 2024

Securityplus Federal Credit Union – 4.00% APY

Term (months): 60
Minimum deposit: $1,000
Early withdrawal penalty: 3 months of interest
Overview: Anyone is eligible to join Securityplus by paying the $15 fee to become a member of the American Consumer Council and opening a savings account with a minimum deposit of $5. Founded in 1938, Securityplus has physical branches in Maryland and over 34,000 members.
Rate verified as of Dec. 24, 2024

SkyOne Federal Credit Union – 4.00% APY

Term (months): 60
Minimum deposit: $1,000
Early withdrawal penalty: 6 months of interest
Overview: Headquartered in Hawthorne, California, southwest of Los Angeles, SkyOne dates back to 1949. It originally was chartered as the CAA Region 6 Federal Credit Union in order to serve employees of the Civil Aeronautics Administration. It has been known as SkyOne since 2010. Anyone can earn membership eligibility by joining the American Consumer Council and paying its $8 membership fee.
Rate verified as of Dec. 24, 2024

Grow Financial Federal Credit Union – 3.92% APY

Term (months): 48–59
Minimum deposit: $500
Early withdrawal penalty: 6 months of interest
Overview: Membership is available to anyone nationwide. Grow Financial was chartered in 1955 and is headquartered in Tampa, Florida.
Rate verified as of Dec. 24, 2024

All In Credit Union – 3.92% APY

Term (months): 60
Minimum deposit: $1,000
Early withdrawal penalty: 3 months of interest
Overview: Anyone can join All In by signing up for a free membership in the Fort Rucker/Wiregrass Chapter of the Association of United States Army, keeping at least $5 in a savings account, and paying a one-time fee of $1. All In Credit Union was established in 1966 at Fort Rucker in Alabama as Army Aviation Center Federal Credit Union to serve soldiers and their families stationed there.
Rate verified as of Dec. 24, 2024

BMO Alto – 3.90% APY

Term (months): 60
Minimum deposit: Any amount
Early withdrawal penalty: 6 months of interest
Overview: BMO Alto is an online-only division of BMO, which is a U.S. subsidiary of Bank of Montreal. In addition to CDs, it offers an online savings account. It was founded in 1817 in Montreal, Canada. BMO Alto currently operates out of Chicago, Illinois.
Rate verified as of Dec. 24, 2024

MYSB Direct – 3.90% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: All earned interest (3 months minimum)
Overview: MYSB Direct is the online banking arm of M.Y. Safra Bank, which is headquartered in New York City and operates a single branch there.
Rate verified as of Dec. 24, 2024

American Heritage Credit Union – 3.90% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 12 months of interest
Overview: Anyone can join American Heritage by agreeing to a free membership in the Kids-N-Hope Foundation and keeping $15 or more in a member savings account. Headquartered in Philadelphia, American Heritage dates back to 1948.
Rate verified as of Dec. 24, 2024

Mountain America Credit Union – 3.90% APY

Term (months): 60
Minimum deposit: $500
Early withdrawal penalty: 12 months of interest
Overview: Anyone can join Mountain America by signing up for a $15 lifetime membership in the nonprofit American Consumer Council and keeping at least $5 in a savings account. Established in the 1930s, MACU is headquartered in Sandy, Utah.
Rate verified as of Dec. 24, 2024

Merrick Bank – 3.90% APY

Term (months): 60
Minimum deposit: $25,000
Early withdrawal penalty: 9 months of interest
Overview: Primarily a credit card issuer and consumer finance provider, Merrick Bank offers online-only certificates of deposit.
Rate verified as of Dec. 24, 2024

Fast Fact

When asked in November where they are investing their money, 13% of Investopedia readers said they are putting more into CDs, tied with government bonds but behind ETFs, individual stocks, index funds, and money market funds.

Pros and Cons of a 5-Year CD

Pros

Interest rate is locked for five years
Pays completely predictable earnings
Extremely safe
Potentially higher APY than other options
Discourages spending

Cons

Penalty imposed if you withdraw early
Only allows a single deposit
If rates rise, you're locked at a lower rate until maturity
Future interest rates are impossible to predict

Pros Explained

Interest rate is locked for five years: When you open a 5-year CD, you get to keep that rate for the entire duration of the CD. Even if interest rates tanks after you lock in your certificate, the bank cannot change the rate you agreed to until the five years are concluded.
Pays completely predictable earnings: Since you know the precise rate you'll earn for the full five years of your CD's term, you can determine exactly how much your CD balance will be when your term ends.
Extremely safe: All CDs held at FDIC banks or NCUA credit unions are insured by the federal government for up to $250,000 per person per institution. So even if the institution fails, your CD funds are protected.
Potentially higher APY than other options: Depending on the current interest rate environment, 5-year CDs may pay higher rates than savings and money market accounts or shorter CDs. It's not always true, but in times when rates are falling, 5-year CD rates are often the best-paying deposit account.
Discourages spending: Because your funds are committed in a CD with threat of a penalty if you withdraw the money early, you may be deterred from the temptation to spend your savings on something unplanned.

Cons Explained

Penalty is incurred if you withdraw early: When you open a CD, the bank or credit union will spell out in the agreement how it will calculate an early withdrawal penalty should you request to take your money out before maturity. Most typically, you'll have to forfeit a certain number of months of interest.
Only allows a single deposit: You fund CDs with a one-time deposit when you open the certificate. Only in "add-on" CDs, an uncommon niche product, can you make additional deposits to the same certificate.
If rates rise, you're locked at a lower rate until maturity: If interest rates go up while you are locked into a 5-year CD, you will be stuck with your rate until the end of your term, preventing you from capitalizing on the higher rates.
Future interest rates are impossible to predict: Over a five-year timeline, it is not possible to forecast if interest rates will rise or fall, or even hold steady for years. So it's difficult to predict whether a 5-year CD rate will be competitive or not several years down the road.

Beware of early withdrawal penalties that can eat into your CD's principal. Losing earned interest when incurring a penalty is to be expected, but avoid certificates where even your principal deposit could be at stake.

Compare the Best 5-Year CDs

Institution	Rate (APY)	Term	Minimum Deposit	Early Withdrawal Penalty
Popular Direct	4.25%	60 months	$10,000	24 months of interest
Signature Federal Credit Union	4.20%	60 months	$500	30 months of interest
Credit Human	4.11%	36–83 months	$500	Up to 24 months of interest ($50 minimum)
Synchrony Bank	4.00%	60 months	Any amount	12 months of interest
Dow Credit Union	4.00%	60 months	$500	12 months of interest
USAlliance Financial	4.00%	60 months	$500	12 months of interest
KS State Bank	4.00%	60 months	$500	18 months of interest
Securityplus Federal Credit Union	4.00%	60 months	$1,000	3 months of interest
SkyOne Federal Credit Union	4.00%	60 months	$1,000	6 months of interest
Grow Financial Federal Credit Union	3.92%	48–59 months	$500	6 months of interest
All In Credit Union	3.92%	60 months	$1,000	3 months of interest
BMO Alto	3.90%	60 months	Any amount	6 months of interest
MYSB Direct	3.90%	60 months	$500	All earned interest (3 months minimum)
American Heritage Credit Union	3.90%	60 months	$500	12 months of interest
Mountain America Credit Union	3.90%	60 months	$500	12 months of interest
Merrick Bank	3.90%	60 months	$25,000	9 months of interest

Alternatives to a 5-Year CD

Shorter-Term CDs

Though banks and credit unions often pay higher rates on 5-year CDs than on shorter terms, this isn't always the case. So it can be smart to consider a shorter CD if it allows you to earn a higher APY. This is especially true if national interest rates are already elevated or are expected to rise in the coming years.

In addition to possibly earning a higher rate, choosing a shorter-term CD lets you make another choice with your money sooner than if you have to wait for a five-year term to expire. Just be aware that when your shorter-term CD matures, the rates you're able to get then could be quite a bit less than the rate you were able to lock in for five years.

High-Yield Savings or Money Market Accounts

Another option for your funds is a high-yield savings or money market account. When rates are high, the best high-yield savings accounts and best money market accounts may offer rates competitive with a 5-year CD. But it's critical you understand that these are variable rates that can change at any time. If interest rates start going down, so too will savings and money market rates, while CD rates will be locked at your initial APY.

The advantage, however, is that you can withdraw your funds at any time from a savings or money market account, giving you more flexibility for funds you're not confident about locking up in a CD.

Bond Investments

Instead of CDs or bank accounts, you can also put your funds into bond instruments, which come in a wide spectrum of types. For instance, you can buy U.S. Treasury savings bonds, like I bonds or EE bonds. Also backed by the U.S. Treasury are Treasury bills and notes. T bills have durations of up to one year, while Treasury notes have terms of 2 to 10 years. U.S. savings bonds, treasury bills and treasury notes are among the safest investments you can buy.

You can also invest in municipal or corporate bonds, though the research and decision-making required to choose individual bonds may be more challenging than many savers are equipped or inclined to decipher. An easier option is to invest in a bond mutual fund or bond ETF (exchange traded fund), which bundles hundreds or thousands of bonds into one fund and enables you to enter and exit the fund anytime you like.

Stock Equities

For money you plan to hold as long as five years, a conservative investment in the stock market is an alternative option. And if the five years in which you're invested in the market are a period of growth, you can earn considerably more with stocks than a fixed-rate CD.

However, the significant downside is that preserving your principal is not guaranteed in the market. You can very easily lose some of your investment, unlike money held in a CD. So if keeping your savings reliably intact is important to you, a CD will serve you better than an equity investment.

Frequently Asked Questions

How Does a 5-Year CD Work?

Opening a certificate of deposit involves making an agreement with a financial institution that you will deposit a certain amount of money in an account that you won't touch, in exchange for earning a premium on the rate of return. You'll also be guaranteed that interest rate for the life of the certificate.
Five-year certificates are useful savings vehicles in a number of situations. For instance, if national interest rates are expected to fall over the coming few years (i.e., you're in a declining rate environment), it would be beneficial to lock in one of today's more favorable rates for the coming five years.
Socking money away in a 5-year CD can also be a helpful strategy if you're saving up for a large financial goal. Perhaps it's money for a down payment on a house. Or maybe you have money saved for your child's college education and you'll need it for tuition in five to six years. By putting it in a CD, you can ensure it earns interest and doesn't lose principal, while also putting a mechanism in place to discourage you from dipping into the funds for other purposes.
How Do CDs From Traditional Banks, Online Banks, and Credit Unions Differ?

Certificates of deposit are available from brick-and-mortar banks, online-only banks, internet banking divisions of traditional banks, and credit unions. For the most part, there is little difference between CDs from these different types of institutions.
The biggest difference is that opening a CD with a credit union requires you to be a member of that credit union. The credit union certificates we include in our rankings all allow a method for anyone nationwide to join. However, doing so sometimes requires a small donation or fee (though not always).
As for CDs from different bank types, there is little difference. You may be able to make an in-branch visit to physical banks that operate in your area, while you can only open an account at an internet banks online. But aside from the physical presence of a bank (or lack thereof), CDs from different banks will function generally the same way.
These different institution types can pay very different rates. Credit unions are not-for-profit institutions and sometimes offer their members better rates than banks do. As a result, you'll see credit unions ranking prominently for longer terms like 5-year certificates.
Online banks also tend to pay higher APYs than traditional banks, as their no-presence business model costs less to maintain than brick-and-mortar institutions. These overhead cost savings are often then passed to consumers via better interest rates.
Which CD Term Pays the Highest Rate?

In theory, the longer you're willing to deposit your funds, the higher the interest rate the bank or credit union will offer you. Unfortunately, this does not always hold true, as the rate institutions are willing to pay depends largely on the market's prediction about where future rates will go.
For instance, when rates have been rising for a while and are expected to soon reach a peak, shorter and mid-term CDs often pay the best rates because banks don't want to get stuck paying the current elevated rate for years after rates begin to subside.
In contrast, if rates have been low for a while and begin to rise, with expectations they will climb for a bit, banks are more interested in enticing customers with a high long-term rate because they expect rates will be much higher in the future.
The good news is that it's easy to see which CD term is paying the best rate at any given time by visiting our daily ranking of the best CD rates. Here you can always see which terms are currently paying the highest yields.
What If I Need to Withdraw My Money Early?

Keeping your certificate funds on deposit until maturity is the best way to maximize your earnings. But sometimes life gets in the way, with unexpected financial needs arising. For this reason, every bank or credit union offering CDs has a written policy on the penalty it will apply should you cash the CD out early.
Most typically, the penalty involves you forfeiting some number of months of interest. For example, the early withdrawal penalty on a 5-year CD might be 12 months of interest. That means an amount equal to what the CD would have earned in a year would be deducted from your balance before liquidating the proceeds.
Early withdrawal penalties are set individually by each bank or credit union, and they run a wide gamut from mild to exceptionally onerous. But even if you don't expect to need an early cash-out, it's smart to determine the early withdrawal penalty in advance of committing to any CD you're considering.
How Do You Build a CD Ladder?
A CD ladder is a strategy that enables you to earn 5-year rates while keeping a portion of your CD funds accessible every year. Here's how it works:
1. Determine how much money you want to invest in CDs.
2. Divide that amount by five.
3. Open a top-paying 1-year CD with one-fifth of the funds, a top 2-year CD with one-fifth, and so forth through a 5-year CD. This will result in five CDs with terms ranging from one to five years.
4. After 12 months, the 1-year CD will mature. Withdraw the funds and invest them in a new top-paying 5-year CD.
5. Every 12 months, withdraw funds from the maturing CD and reinvest it in a top-paying 5-year CD.
6. After four years, you'll have a portfolio of five 5-year CDs earning top long-term rates. But one of them will mature every 12 months, giving you periodic access to a portion of your funds.
Financial Institutions We Review

We researched and reviewed more than 250 banks, credit unions, and financial institutions to find the best CD rates you see above on this list. While we write individual reviews for most, we do not always write reviews for those we would not recommend. Below are the banks, credit unions, and financial institutions we researched along with links to individual company reviews to help you learn more before making a decision:
1st Source Bank, 5star Bank, ableBanking, Abound Credit Union, Achieva Credit Union, Affinity Federal Credit Union, Affinity Plus Federal Credit Union, Air Force Federal Credit Union, Alabama Credit Union, Allegacy Federal Credit Union, Alliant Credit Union, Ally Bank, Amerant Bank, American 1 Credit Union, American Express, American Heritage Credit Union, Andrews Federal Credit Union, Apple Federal Credit Union, Banco do Brasil Americas, Banesco USA, Bank of Baroda, Bank5 Connect, Bank7, Texas Capital Bank, bankESB (Easthampton Savings Bank), BankUnitedDirect, Barclays, BBVA Bank, Bellco Credit Union, Blue Federal Credit Union, BMO, BMO Alto, BrioDirect, Cadets Federal Credit Union, California Coast Credit Union, Capital One, Capitol Federal Savings Bank, CD Bank, CFG Bank, Chase Bank, Chevron Federal Credit Union, CIBC (Agility Banking), CIT Bank, Citibank, Citizens Access, Citizens Trust Bank, Colorado Federal Savings Bank, Bread Savings, Communitywide Federal Credit Union, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Corporate America Federal Credit Union (CAFCU), Credit Union of Denver, Credit Union of the Rockies, Digital, Federal Credit Union, Discover Bank, DollarSavingsDirect, Dover Federal Credit Union, Dow Credit Union, Evergreen Bank Group, RocklandTrust Bank, Elements Financial, EmigrantDirect.com, Liberty Federal Credit Union, Fidelity Investments, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Financial Credit Union, First Financial Northwest Bank, First Internet Bank, First National Bank of America, First Technology Federal Credit Union, Fort Bragg Federal Credit Union, Garden Savings Federal Credit Union, Georgia Banking Company, Georgia's Own Credit Union, GreenState Credit Union, Greenwood Credit Union, Grow Financial Federal Credit Union, GTE Financial, Gulf Coast Bank & Trust Company, Hanscom Federal Credit Union, Heritage Bank, Hiway Federal Credit Union, Home Loan Investment Bank, Home Savings Bank, Hope Credit Union, HSBC Direct, Hughes Federal Credit Union, Hyperion Bank, Ideal Credit Union, iGObanking, Interior Federal Credit Union, Justice Federal Credit Union, Kinecta Federal Credit Union, KS State Bank, La Capitol Federal Credit Union, Lafayette Federal Credit Union, Lake Michigan Credit Union, Langley Federal Credit Union, Latino Community Credit Union, Limelight Bank, Live Oak Bank, Luther Burbank Savings, MYSB Direct, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, MapleMark Bank, Marcus by Goldman Sachs, Market USA Federal Credit Union, Matadors Community Credit Union, MECU Credit Union, Merrick Bank, Michigan State University Federal Credit Union, Mills42 Federal Credit Union, Mountain America Credit Union, MTC Federal Credit Union, MutualOne Bank, My Banking Direct, My eBanc, My Savings Direct, NASA Federal Credit Union, Nationwide by Axos Bank, Navy Federal Credit Union, nbkc, NexBank, North Country Savings Bank, Northern Bank Direct, Northfield Bank, Northpointe Bank, Nuvision Federal Credit Union, Oklahoma Central Credit Union, One American Bank, OneUnited Bank, Pacific National Bank, Paramount Bank, PARDA Federal Credit Union, Partner Colorado Credit Union, Patelco Credit Union, Pen Air Federal Credit Union, PenFed Credit Union, People's Credit Union, First Service Credit Union, Pinnacle Federal Credit Union, Popular Direct, Premier America Credit Union, Presidential Bank, FSB, Prime Alliance Bank, PSECU (Pennsylvania State Employees Credit Union), Quontic Bank, Quorum Federal Credit Union, Rising Bank, Merrimack Valley Credit Union, Salal Credit Union, Sallie Mae Bank, Santa Clara County Federal Credit Union, Signature Federal Credit Union, Spectrum Credit Union, SRP Federal Credit Union, State Bank of India Chicago, State Bank of India New York, State Bank of Texas, State Department Federal Credit Union, Summit Credit Union, Sun East Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, Teachers Federal Credit Union, Technology Credit Union, The Federal Savings Bank, Third Federal Savings & Loan, EverBank, TotalBank, Transportation Federal Credit Union, TruStone Financial Credit Union, UNIFY Financial Credit Union, Expedition Credit Union, United States Senate Federal Credit Union, United Texas Bank, University Federal Credit Union, US Bank, USAlliance Financial, USPS Federal Credit Union, Velocity Credit Union, VeraBank, Vio Bank, Virtual Bank, WebBank, Webster Bank, Wells Fargo, Western Vista Credit Union, Wings Financial Credit Union, XCEL Federal Credit Union, BankPurely, Umbrella Bank, giantbank.com, CapEd Credit Union, Zeal Credit Union, Finworth, Coastal1 Credit Union, Service Credit Union, National Cooperative Bank, Premier Members Credit Union, Bank of America, Flagstar Bank, 1st MidAmerica Credit Union, INOVA Federal Credit Union, Genisys Credit Union, Ivy Bank, Heartland Credit Union, Luana Savings Bank, Spectra Credit Union, Workers Credit Union, Credit Human, EFCU Financial, Poppy Bank, Credit One Bank, Vibrant Credit Union, CFBank, Department of Commerce Federal Credit Union, Seattle Bank, Crescent Bank, Pima Federal Credit Union, Cross River Bank, USAA, Great River Federal Credit Union, Brilliant Bank, Merchants Bank of Indiana, LendingClub, Chartway Credit Union, First Central Savings Bank, AgFed Credit Union, North American Savings Bank, Pelican State Credit Union, First Community Credit Union, Bask Bank, Skyla Credit Union, SkyOne Federal Credit Union, 3Rivers Federal Credit Union, Utah First Credit Union, Pasadena Federal Credit Union, Magnifi Financial, AloStar, Primis Bank, Farmers Insurance Federal Credit Union, Tampa Bay Federal Credit Union, Veridian Credit Union, Republic Bank, Salem Five Direct, All In Credit Union, Bethpage Federal Credit Union, Self-Help Federal Credit Union, Forbright Bank, Jovia Financial Credit Union, Sun Canyon Bank, Fortera Credit Union, Partners 1st Federal Credit Union, SouthEast Bank, American Bank, Newtek Bank, CBC Federal Credit Union, Vanguard, All America Bank, Amalgamated Bank, Citizens State Bank, AmBoy Direct, Republic Bank of Chicago, Oklahoma Community Credit Union, BluPeak Credit Union, Valley Direct, Bayer Heritage Federal Credit Union, First Harvest Credit Union, Orion Federal Credit Union, Wellby Financial, FedChoice Federal Credit Union, CoVantage Credit Union, Choice First Bank, Sandia Area Federal Credit Union, OMB Bank, Minnequa Works Credit Union, Securityplus Federal Credit Union, Bank of South Texas, T Bank

How We Find the Best 5-Year CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide, and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD's minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.