Best 5-Year CD Rates of 2020

Lock some money up for 60 months and grow your assets

If you are looking for a very low-risk investment with a guaranteed payout and can leave your money alone for at least 60 months, then you should consider investing in a five-year CD. Some expenses in life are guaranteed, and you don’t want to risk losing money you will need by investing in riskier assets. Some examples of this include saving for a child or grandchild’s education, saving for a downpayment on a house, or saving for a dream vacation in the distant future.

When it comes to five-year CDs, it makes no difference whether you choose to invest at a bank or a credit union. Up to $250,000 of your money will be insured at both banks and credit unions – the only difference is who provides this insurance. For banks, deposits are protected by the Federal Deposit Insurance Corporation (FDIC), and deposits in credit unions are protected by the National Credit Union Administration (NCUA). One important thing to keep in mind though is that banks will take pretty much anyone’s money while credit unions have specific membership requirements. With that said, read on for the best five-year CD rates.

Best Overall: Northpointe Bank

You won’t find a better rate at a lower minimum deposit anywhere on this list. How does Northpointe Bank do it? The company aims to be client-focused, and they do so while providing excellent value for their shareholders as well. While they are not accepting new clients for some of their best products, like a free checking account that pays out interest, they are still enrolling people in their 60-month CD, which packs a serious value. The minimum deposit is $1000, and the APY is 2.25 percent.

Five-year CDs are not ideal for shorter-term investment goals, or money you might end up needing in a hurry, such as an emergency fund. As the name implies, you will need to be willing to leave your money alone for at least five years or risk paying steep penalties that could cancel out a substantial portion of the interest you have earned. Early withdrawal fees may be charged to certificates of deposit.

Want more information? Check out our full review of Northpointe Bank

Best for Big Investors: Popular Direct

If you have $10,000 to set aside for five years, Popular Direct is a great place to park it. The online bank offers a very generous interest rate on 60-month CDs, as well as a ten-day rollover grace period in which you can decide whether to roll over your CD into a new five-year term or withdraw your funds. The minimum required ​deposit is $10,000 with an APY of 2.30 percent. As they only offer CDs and savings deposits, this is a specialized bank designed to help you grow your money through a CD or savings account, and they provide a myriad of articles and blog posts with financial advice for their customers.​

The bank itself has a tremendous financial health rating, meaning your money is in a safe place. Expect to pay early withdrawal fees for CDs equal to or greater than 36 months, but less than 60 months, the cost is 365 days simple interest. For terms equal to or greater than 60 months, the fee is 730 days simple interest.

For more information, check out our full review of Popular Direct.

Best for Politicos: United States Senate Federal Credit Union

United States Senate Federal Credit Union
Courtesy of United States Senate Federal Credit Union

No, you do not have to be a member of the Senate to qualify to join this credit union, but you do have to be a member of one of their 140 employee groups. The minimum deposit for a five-year CD is $1,000. If you invest up to $20,000, you will earn a very respectable 2.53 percent on your investment. After that, you can move up to the jumbo rate of 2.59%. Your CD will renew automatically, and you will have ten days to decide whether to stay or go once it does.

Customer service, like many organizations affiliated with the government, is nothing to write home about – but how often are you going to be checking up on a five-year investment that pays out a set amount of interest? Early withdrawal penalties may apply. Withdraws and fees may reduce earnings.

Best Rated Credit Union: Connexus Credit Union

You will get a high rate at Connexus, but you will have to invest at least $5,000. Bankrate and Nerdwallet have both ranked Connexus as one of the best credit unions, so you can bet you will have an enjoyable experience working with them. You can join the credit union by living in certain areas, being employed by a company in their member group, being married to someone employed by a company in their member group, or by making a one time $5 donation.

The minimum deposit is $5,000 for a 5-year CD with an APY of 2.60 percent. Dividends on Connexus Share Certificates are compounded and credited to your account quarterly. You can choose to have dividends automatically posted to another Connexus account quarterly or paid directly to you in the form of a check.

Best for Flexible Payment: Citizens Access Bank

When you invest with Citizens Access, you enjoy the impressive rates that come with online-only banking and can also choose whether your interest payments are reinvested in your CD or transferred directly into your bank account. This gives you the option of either growing your investment or having a steady (if small) stream of income year to year.

The user experience on the Citizens Access website is second-to-none. There are no annoying forms to fill out and the experience, from a visual and financial perspective, is a delight. The minimum deposit for a five-year CD is $5,000 with an APY of 2.45 percent. A five-year CD is considered a long-term CD and would be charged 180 days of interest for early withdrawal.

For more information, check out our review of Citizens Bank.

Best Credit Union: Greenwood Credit Union

Greenwood Credit Union
Courtesy of Greenwood Credit Union

Greenwood Credit Union offers a tremendously generous rate on their five-year CD. Unlike most credit unions, which come with lengthy or complicated requirements for membership or only serve niche communities, Greenwood Credit Union accepts anyone as a member who opens and maintains a $5 share account. Their five-year CD requires a minimum deposit of $1,000 and has an APY of 2.60percent. Greenwood Credit Union has a long history of providing high-quality financial services to individuals and families throughout Warwick, Kent County, the State of Rhode Island and beyond. It was founded in 1948.

They have always shown a strong commitment to the financial well-being of the families, businesses, and communities that they serve. Over the years Greenwood Credit Union has shown steady positive growth and has over $450 million in total assets and is still growing.

The credit union itself is located in Rhode Island, so if you happen to live there, you will be able to access a physical branch. Otherwise, their website is friendly and easy-to-use. Credit union membership comes with a whole host of other perks in addition to great CD rates, including special discount offers and a whole host of financial services. 

Best for Small Investments: Vio Bank

Vio is another bank that offers just CDs and savings products, and few frills. They currently offer one of the best high-interest savings accounts as well as a good rate on a five-year CD. The minimum deposit required is only $500 with an APY of 1.80 percent. They are a subsidiary of MidFirst Bank and exist online only, so you will need to get comfortable using their mobile app and checking in on your investment through the website.

Viro states that they regularly monitor the competition to ensure their rates are some of the best in the nation. Some individuals have reported having trouble getting approved to invest or to transfer large sums of money out once their CD matures, so make sure to read the fine print before you invest (which is a great rule to follow in general). Early withdrawal of your money is not recommended as they charge a fee of three percent of the amount withdrawn, plus a $25 fee.

Best for Floridians: TIAA Bank

TIAA offers excellent CD rates, their CDs are IRA eligible, and you will get an alert 20 days before your CD matures so that you can decide whether you want to withdraw the funds or let TIAA perform an automatic rollover. The five-year CD comes with an APY of 2.35 percent. You will need to call for interest rates and APYs applicable to CDs exceeding $1 million. The required minimum opening deposit is $5,000.

Early withdrawal penalties do apply, and the fees may reduce your earnings. If you live outside of Florida, be aware that the bank has less than ten branches outside of the Sunshine State, so you will need to handle your account online rather than going into a branch location.

However, TIAA offers excellent customer service on the phone, through Twitter, and on their mobile app (which can be glitchy at times). If you are saving for a longer-term goal, such as retirement that is more than two decades away, then you might want to consider riskier investments that have a higher average yield, like investing in the stock market.

However, CDs can add necessary diversity to any investment portfolio, whether your investment goal is far away or not.