Best 5-Year CD Rates

Are your savings making as much as a five-year CD?

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Five-year certificates of deposit (CDs) are among the most popular CDs because they’re often a bank or credit union’s highest-yielding deposit account. In a falling interest-rate environment, locking in a decent return for five years can be very appealing. Then again, five years is a long time to stash your money away, so you should consider your options carefully.

Every week we comb through the five-year CD rates from over 150 banks and credit unions nationwide to find the highest ones. We track APYs daily but re-evaluate and re-order our list weekly. All accounts that make our cut are insured by either the FDIC or the NCUA and are available to customers nationwide, even if there are a few hoops to jump through to get them. 

We also include a few four-year CDs because if you’re building a CD ladder, you’ll need these building blocks as well. (For both lists, we consider CDs with terms close to four and five years, if not exact: 42 to 53 months for four-year CDs and 54 to 66 months for five-year CDs.) In the case of a tie on the APY, we look at the CD with the shortest term and then with the lowest minimum deposit required to earn the APY.

Here are the top four-year and five-year CD rates as of Jan. 24, 2022.

Best Five-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
American Heritage Credit Union 1.50% $1,000 12 months of interest
Teachers Federal Credit Union 1.35% $1,000 All earnings up to 9 months' worth
Credit Human 1.30% $500 $50 regardless of term and 730 days' dividends
PenFed Credit Union 1.30% $1,000 If closed within first year, 12 months of interest. If after first year, 30% of interest.
Lafayette Federal Credit Union 1.26% $500 20 months of interest
Wings Financial Credit Union 1.26% $10,000 2 years of interest
Abound Credit Union (59 months) 1.25% $500 12 months of interest

Best Four-Year CD Rates

Bank or Credit Union APY Minimum Deposit Early Withdrawal Penalty
NASA Federal Credit Union (49 months) 1.70% $10,000 All interest earned up to 12 months
American Heritage Credit Union 1.25% $1,000 12 months of interest
Lafayette Federal Credit Union 1.16% $500 16 months of interest

American Heritage Credit Union (4-year and 5-year)

While its headquarters are in Philadelphia, American Heritage has 5,300 shared branches, and anyone can join. Just become a member of the credit union’s own Kids-N-Hope Foundation (the credit union will make a donation for you), and you’ll be eligible. Plus, it’s nice knowing that the charity has raised more than $1.5 million for area children’s hospitals. You’ll also need to open a savings account with a $15 minimum deposit. 

Members can open a variety of accounts including checking, savings, credit cards, loans, and more. There are many short-term certificates available, as well as terms that go as long as five years. 

Teachers Federal Credit Union

Teachers Federal Credit Union was founded in 1953 by a group of teachers on Long Island, New York. Today, the credit union serves over 360,000 members across the United States and has $8.7 billion in assets.

Teachers Federal offers all standard banking products and has 32 branch locations in the New York City metro area.

Anyone can join Teachers Federal Credit Union, and joining only requires $1. 

Credit Human

Credit Human was formed in San Antonio, Texas, in 1935 to serve members of the National Federation of Federal Employees Local #28 union. It took the name Credit Human in 2016.

Membership is available nationwide to anyone who joins the American Consumer Council, and Credit Human agrees to pay the fee to join the ACC.

The credit union has several branches throughout Texas, but members nationwide can access their accounts through online banking, a mobile app, or through CO-OP's shared branching network. Credit Human is not part of a fee-free ATM network.

PenFed Credit Union

Membership at PenFed Credit Union is available to anyone nationwide, including those in Guam and Puerto Rico. It also serves customers in Okinawa, Japan.

The credit union was formed in 1935 and has grown to more than 2 million members and more than $25 billion in assets. The credit union offers a full array of consumer banking options, including, checking, savings, credit cards, mortgages, auto loans, and more.

All banking can be done through its app or via online banking.

Lafayette Federal Credit Union

Lafayette Federal Credit Union is based out of Rockville, Maryland, and it operates just eight branches scattered around the Washington D.C. area. It’s a full-service credit union, and you can choose from variable-rate and fixed-rate certificates depending on what tickles your fancy.

If you don’t qualify for membership through other means (such as living in the area or working for certain employers), you also can become a member by first joining the Homeownership Financial Literacy Council for $10. You also must keep a $50 balance in a savings account.

Wings Financial Credit Union

Wings Financial Credit Union, based in Apple Valley, Minnesota, was started in 1938 by a handful of Northwest Airlines employees. Since then, it’s grown to have more than $6 billion in assets and 300,000 members, and anyone in the aviation industry or from Atlanta, Detroit, Orlando, Seattle-Tacoma, or parts of Wisconsin and Minnesota is eligible to join. If you don’t meet the eligibility requirements any other way, don’t worry. You can join by becoming a member of the Wings Financial Foundation, which carries a $5 membership fee. You’ll also need to keep $5 in a savings account.

Abound Credit Union (59-Month)

Formerly known as Fort Knox Federal Credit Union, Abound Credit Union is a Kentucky-based institution with ties to the Fort Knox Army base. Started by 10 people in 1950, Abound claims that it is the largest credit union in the state, with 18 locations and more than 100,000 members. While it caters to military and civil service employees and their families, anyone can join, as long as they pay the $10 one-time membership fee and keep at least $5 in a savings account.

NASA Federal Credit Union (49-Month)

All banking can be done through its app or via online banking.

The credit union was formed in 1935 and has grown to more than 2 million members and more than $25 billion in assets. The credit union offers a full array of consumer banking options, including, checking, savings, credit cards, mortgages, auto loans, and more.

Membership at PenFed Credit Union is available to anyone nationwide, including those in Guam and Puerto Rico. It also serves customers in Okinawa, Japan.

Started in 1949 by members of the scientific community, NASA Federal Credit Union serves over 177,000 members nationwide. Anyone can join the credit union by becoming a member of the National Space Society. You can join via the NASA Federal Credit Union application page, and your first year of membership is complimentary. Members are also required to sign up for a primary savings account with a minimum deposit of $5.

What Is a 5-Year CD?

A certificate of deposit is a special type of savings account that locks in your money and your interest rate. Also known as a time deposit, a CD requires you to leave your money alone for a specified length of time without adding to or withdrawing from the account.

With a five-year CD, you agree to keep your money with the bank or credit union for a length of five years and in turn, the financial institution will pay you the same APY for that entire five years. Each month or quarter, you’ll earn interest payments that are deposited into the CD and earn even more interest. That continues until the CD matures (reaches the end of its term), or until you withdraw early, which comes with a penalty.

Most 5-year CDs automatically renew for another term length when they mature. If they do, you can still withdraw or add money to the account during a short grace period at the start of the term. Most grace periods are around seven to 10 days in length. After that, the account is locked down again for another five years, and you would have to pay an early withdrawal fee to access your funds any sooner.

Who Is a 5-year CD Best For?

If you have extra money that you won’t need on short notice (i.e., not the money you keep in your emergency fund), a 5-year CD can definitely earn more interest for you than a typical savings account.

Five-year CDs are often the highest-earning and longest-term accounts offered by a bank and credit union. As long as the institution is insured by the FDIC (for banks) or the NCUA (for credit unions), you’re guaranteed not to lose your money (up to $250,000) even if the bank goes under.

Five-year CDs are also a popular choice for CD ladder strategies. One common CD ladder method is to divide your money among five separate CDs with staggered terms (one-year, two-year, three-year, four-year, and five-year) so that one CD matures every year.

Once the one-year CD matures, you reinvest that money into a five-year CD, and you do that every year. That way, all of your money will be stored in high-yield CDs, but you’ll still get access to part of your money once a year if you should need it. You can also include CDs with terms shorter than a year if you want to access your money sooner.

What Are the Alternatives to a Five-Year CD?

Some banks offer CDs with even longer terms, all the way up to 10 years. That’s a big commitment, but you may be able to earn an even higher rate yet with these CDs.

Alternatively, if you won’t need the money you’ve set aside for a really long time (such as before you retire), many people advise investing in the stock market instead. Over the long term, the stock market has vastly outperformed CDs. There are no guarantees though, and unlike with a CD, you could lose money in the stock market.

Many banks offer five-year IRA CDs for you to earn a guaranteed rate on your retirement savings. They have a hidden opportunity cost, though: Your money might not grow as fast as if you’d placed it in a higher-earning (but more volatile) investment like stocks or bonds.

One other option is a high-interest savings account. You’ll have easier access to your money than you would with a CD, and many savings accounts these days pay rates that are competitive with CDs. The downside? The APYs are variable, so you won’t be guaranteed a rate of return. 

If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Consumer Financial Protection Bureau. "What Is a Certificate of Deposit (CD)?" Accessed Jan. 24, 2022.

  2. Office of the Comptroller of the Currency. "My Time Certificate of Deposit (CD) Matured, But I Didn't Redeem It. What Happened to My Funds?" Accessed Jan. 24, 2022.

  3. CreditUnion.gov. "Is My Credit Union Federally Insured and How Do I Know?" Accessed Jan. 24, 2022.

  4. U.S. Securities and Exchange Commission. "Risk and Return." Accessed Jan. 24, 2022.