APYs listed in this article are current as of the time of publication. CNBC Select will update as changes are made public.

If you're saving toward a long-term goal, like a down payment on a home, a five-year CD will deliver a predictable return while keeping your principal well protected.

CNBC Select compared CDs from more than 35 banks, credit unions and online institutions to find the best rates for five-year (60-month) terms. As of July 2026, the national average rate for a five-year CD is 1.73 percent APY, according to the FDIC. Our picks range from 4.35% at E*TRADE to 3.75% at First National Bank of America and Synchrony Bank.

In addition to yields, we considered deposit requirements, CD types, early withdrawal penalties, account availability, customer service and other factors. See our methodology for more on how we made our choices.

Best 5-year CD rates

  • E*TRADE – 4.35% APY
  • NASA Federal Credit Union – 4.28% APY
  • Sallie Mae – 4.20% APY
  • TAB Bank – 4.20% APY
  • BTG Pactual – 4.15% APY
  • Quorum Federal Credit Union — 4.15%
  • Prime Alliance Bank – 4.10% APY
  • Merrick Bank – 4.10% APY
  • CFG Bank – 4.05% APY
  • Bread Savings: 4.00% APY
  • Marcus by Goldman Sachs®—3.80 APY
  • First National Bank of America — 3.75% APY

  • Synchrony Bank: 3.75% APY

  • Annual Percentage Yield (APY)- 4.05% to 4.35%

  • Terms- From 6 months to 60 months, plus add-on and bump-up CDs

  • Minimum deposit- None

  • Monthly fee- None

  • Early withdrawal penalty fee- Early withdrawal penalty equal to certain number of days of simple interest, based on the term of the CD. If the penalty amount exceeds the accrued interest, the principal is also subject to penalty.

Terms apply.

NASA Federal Credit Union CDs

  • Annual Percentage Yield (APY)- 3.95% to 4.30%

  • Terms- From 6 months to 60 months, plus add-on and bump-up CDs

  • Minimum deposit- $1,000 to $10,000

  • Monthly fee- None

  • Early withdrawal penalty fee- Equal to six to 12 months of interest/dividends, depending on the length of the certificate term. If the penalty amount exceeds the accrued interest, the principal is also subject to penalty.

Terms apply.

  • Annual Percentage Yield (APY)- From 3.20% to 4.20% APY

  • Terms- From 6 months to 5 years

  • Minimum deposit- $2,500

  • Monthly fee- None

  • Early withdrawal penalty fee- Withdrawals before the maturity date are subject to penalties. For terms of 12 months or less, the penalty is 90 days of simple interest on the amount withdrawn. For terms longer than 12 months, it's 180 days of simple interest.

Terms apply.

  • Annual Percentage Yield (APY)- From 4.00% to 4.20% APY

  • Terms- From 12 months to 60 months

  • Minimum deposit- $1,00

  • Early withdrawal penalty fee- 90 days of interest for terms of 12 months or less, and 6 months of interest for terms greater than 12 months.

Terms apply.

  • Annual Percentage Yield (APY)- From 3.20% to 4.15%

  • Terms- From 3 months to 60 months, plus 13-month no-penalty CD

  • Minimum deposit- $500 ($5,000 for no-penalty CD)

  • Early withdrawal penalty fee- Penalty depends on the CD term and is disclosed in the account agreement. Early withdrawal without penalty is permitted up to two times with a no-penalty CD. REPLACE WITH: Penalty depends on the CD term and is disclosed in the account agreement. Up to three withdrawals are allowed with a penalty-free CD, starting 7 days after funding the account.

Terms apply.

  • Annual Percentage Yield (APY)- From 2.75% to 4.20% APY

  • Terms- From 3 months to 60 months

  • Minimum deposit- $100

  • Early withdrawal penalty- 1% to 3% of the amount withdrawn, based on the length of the account term. The penalty amount never exceeds the original principal balance.

Terms apply.

  • Annual Percentage Yield (APY)- 3.95% to 4.10% APY

  • Terms- From 6 months to 60 months

  • Minimum balance- $500

  • Monthly fee- None

  • Early withdrawal penalty fee- Equal to 90 days of interest for most standard terms, though terms under 12 months may incur 60 days of interest.

Terms apply.

  • Annual Percentage Yield (APY)- 3.95% to 4.20% APY

  • Terms- From 3 months to 60 months

  • Minimum balance- $25,000

  • Monthly fee- None

  • Early withdrawal penalty fee- Three to nine months of interest, depending on the length of your term. If the penalty amount exceeds the accrued interest, the principal is also subject to penalty.

Terms apply.

  • Annual Percentage Yield (APY)- From 3.65% to 4.15%

  • Terms- From 12 months to 60 months

  • Minimum balance- $500 to open and start earning interest

  • Monthly fee- None

  • Early withdrawal penalty fee- Early withdrawal penalty depends on the term length; withdrawing within six days of account opening will cost you a 7-day interest penalty.

Terms apply.

  • Annual Percentage Yield (APY)- From 3.70% to 4.00% APY

  • Terms- From 6 months to 5 years

  • Minimum deposit- $1,500

  • Monthly fee- None

  • Early withdrawal penalty fee- For terms shorter than one year, the penalty is 90 days simple interest. For terms 12 months to 3 years, the penalty is 180 days simple interest. For terms 4 years and up, the penalty is 365 days simple interest.

Terms apply.

  • Annual Percentage Yield (APY)- From 3.85% to 4.05% APY

  • Terms- From 6 months to 60 months

  • Minimum deposit- $500

  • Early withdrawal penalty fee- For CD terms of less than 1 year, the penalty is 90 days' interest on the principal balance at the interest rate in effect for the CD. For terms between 1 year and 5 years, the penalty is 180 days' interest. For CDs with terms of more than 5 years, the penalty is 270 days' interest. No-penalty CDs are not subject to penalty after seven days.


    Early withdrawal penalty = interest rate ÷ 365 (or 366) × penalty days × original principal balance

Terms apply.

  • Annual Percentage Yield (APY)- 3.65% to 4.05%* APY

  • Terms- From 6 months to 120 months

  • Minimum deposit- $1,000**

  • Monthly fee- None

  • Early withdrawal penalty fee- The penalty is based on the term and may result in a reduction of your principal balance. FNBA does allow partial withdrawals.

Terms apply.

  • Annual Percentage Yield (APY)- From 0.25% to 4.15% APY

  • Terms- From 3 months to 60 months

  • Minimum deposit- None

  • Monthly fee- None

  • Early withdrawal penalty fee- There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date, applied to the amount of principal withdrawn. For the no-penalty CD, early withdrawals are not permitted within the first 6 days after account funding. After that, only withdrawal of the entire balance is allowed.

Terms apply.

A CD, or certificate of deposit, is a savings account that earns a fixed rate of interest for a set term, usually between three months and five years. (At a credit union, the same product may be called a share certificate or term savings account.)

With a traditional CD, you deposit funds when you open the account and then leave them untouched until the term ends.

Taking money out before the CD matures means incurring an early withdrawal penalty. The penalty varies by bank and your CD's term length, but it's usually the interest you would have earned over a certain number of days or months. (Generally, the longer the CD term, the higher the withdrawal penalty.)

Once the CD matures, you get your money back, in addition to the interest earned. If you don't withdraw the funds, the bank will often auto-renew at the rate offered at maturity.

One reason you might choose a CD over a high-yield savings account is that you lock in your rate the day you open the account and don't have to worry about it dropping.

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

You can open a CD in just a few minutes online or in person, although many of the most competitive rates are with institutions that don't have physical branches. There are several steps to follow, however.

  • Compare CD options.Review APYs, term lengths, minimum deposit requirements and early withdrawal penalties to find the CD that's right for you.
  • Complete the application.Provide your personal information, including your name, address, Social Security number or Taxpayer Identification Number. You'll likely be asked for a copy of your government-issued ID.
  • Fund your account.Make your opening deposit by transferring money from a linked bank account, using a wire transfer, mailing a check, or another funding method. To open a CD account for the first time, many banks require a deposit of new money, meaning you can't transfer funds you already had in an account at that bank.
  • Review your maturity options.Decide whether you want the CD to renew automatically, transfer the funds to another account or pay out the balance when the term ends. Many CDs automatically renew at maturity unless you choose otherwise.
  • Monitor your maturity date.If there is an auto-renew feature, you should still have a grace period to withdraw funds without penalty. Set a reminder on your calendar for when the CD matures so you can control what happens to your money.

While traditional CDs are the most common kind, many banks offer other types.

1. No-penalty CD: A no-penalty CD enables you to withdraw money before your CD reaches maturity without paying a penalty. In exchange, no-penalty CDs usually have lower interest rates.

2. Bump-up CD: A traditional CD locks your funds into a fixed rate until maturity. With a bump-up CD, if your bank raises interest rates, you can request the higher rate during your term. Most banks only allow you to opt into a rate increase once per term. Step-up CDs are similar, except that the rate is automatically raised to a higher yield at specific points in your term.

3. Add-on CD: With a traditional CD, you can only deposit a lump sum when opening your account. Add-on CDs allow you to make additional deposits throughout the term. Most banks restrict how many additional deposits you can make, based on the term.

4. Jumbo CD: Traditional CDs often have minimum deposits of $500 or $1,000, though some have no minimum at all. Jumbo CDs typically require a minimum deposit of $50,000 or $100,000. And while they historically offered higher interest rates, many banks now pay yields similar to—or even lower than—standard CDs.

5. Brokered CD: Brokered CDs are sold through investment firms and operate as securities. You can sell them on the secondary market before their maturity date, which makes them more liquid than traditional CDs. It also means you could lose money if you have to sell for less than your original investment.

6. IRA CD: A retirement savings account that holds one or more certificates of deposit, combining the safety of a CD with the tax advantages of an IRA. Because of its low risk, an IRA CD is preferred by savers near or in retirement looking for predictable returns without market volatility. However, early withdrawal could result in paying two penalties.

When choosing a CD, consider how long of a term you're comfortable with. Six-month and 12-month CDs if you want to grow your money for a short-term goal, such as a vacation. A five-year CD may be better for saving up for a down payment on a home.

Once you know the term, there are several factors to consider:

  • Annual percentage yield (APY)
  • Minimum deposit requirement
  • Early withdrawal penalty
  • Availability of no-penalty, bump-up or other CD types
  • Other banking products
  • Online experience and customer support

Like all savings vehicles, CDs have their benefits and drawbacks.

Pros of CDs

  • Healthy yields in a high-rate environment
  • Fixed interest rates ensure your APY won't decline
  • Funds are locked in, helping you resist temptation to spend

Cons of CDs

  • You can't touch the funds until the term ends without a withdrawal penalty
  • You can generally only deposit money into a CD at the beginning of the term
  • You typically can't take advantage if rates increase
  • There may be a minimum deposit requirement

CD FAQs

How much money do you need to open a five-year CD?

Minimum opening deposits vary by financial institution. Some banks require no minimum deposit, while others may require $500 or $1,000, or more. Jumbo CDs typically require much larger deposits.

Is a five-year CD worth it?

A five-year CD can be worth it if you have a long-term financial goal (like buying a home or paying for college) and open the account when interest rates are high; that way, you're locked into a good rate for a long term. Just make sure you're comfortable leaving those funds untouched for all those years and aren't concerned that rates may rise even higher.

Should I open a five-year CD or a high-yield savings account?

It depends on your goals. A high-yield savings account offers access to your funds without penalty, but the interest rate will likely fluctuate over time. A five-year CD may be a better choice if you want to lock in a fixed rate and don't need access to your money.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

To identify the best five-year CDs, we compared certificates of deposit from more than 45 banks, credit unions, and online financial institutions. We evaluated each account using the following criteria:

  • Annual percentage yield (APY):We prioritized CDs offering competitive yields compared with the national average and other five-year CDs.
  • Minimum opening deposit:Accounts with low or no minimum deposit requirements were given more weight.
  • CD types: We considered whether institutions offered no-penalty, bump-up and add-on CDs, in addition to traditional CDs.
  • Early withdrawal penalty:While longer-term CDs typically carry larger penalties, we compared penalty policies and gave preference to CDs with less restrictive terms.
  • Fees:None of the institutions on this list charge a monthly maintenance fee for CDs
  • Deposit insurance:We only considered CDs offered by banks insured by the Federal Deposit Insurance Corporation (FDIC) or credit unions insured by the National Credit Union Administration (NCUA). We also considered whether institutions offered expanded FDIC insurance through deposit sweep programs that can extend coverage beyond the standard $250,000 limit.
  • Customer experience:We considered factors such as online account opening, mobile banking, and customer support hours. We also reviewed the overall ease of managing the account.
  • Branch availability: We considered whether an institution had physical branches for savers to conduct in-person banking
  • Additional banking services: We considered whether an institution also offered checking and savings accounts, personal loans, mortgages, investments and other financial products.
  • Availability:Institutions that serve savers nationwide were given more weight.

Because CD rates change frequently, our rankings are reviewed and updated regularly to reflect the most competitive offers currently available.

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Editorial Note:Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.