Best 5-year CD rates - September 2022
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Best 5-year CD rates - September 2022

January 10, 2023
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Best 5-year CD rates - September 2022

A certificate of deposit is a financial product that allows you to set aside money and earn a fixed rate of interest for a set period of time. In exchange for returning the money for a longer, fixed period, you usually get a higher interest rate. For example, a five-year CD may pay a higher (and guaranteed) rate than a traditional savings account while offering security.

The average rate for a five-year CD is 0.74 percent, but the Empire Finance Pro team researched the best rates available nationwide. Compare these offers and calculate the interest you will get when the CD matures.

What is a 5-year CD?

Think of a CD as a high-yield savings account in a time safe. Unlike a savings account with a variable annual percentage yield (APY), the yield on a CD is fixed and does not change during the term of the contract. At maturity, one month later, you can renew the CD or look for another one with a potentially higher yield if the interest rate environment has improved. After the expiration date of a CD, it will probably be automatically renewed after a grace period, usually within seven to ten days.

Empire Finance Pro's choices for the best 5-year CD rates

  • Bread Savings - 3.65% per annum, minimum deposit $1,500.
  • Synchrony Bank - 3.50% per annum, $0 minimum deposit.
  • Popular Direct - 3.40% per annum, minimum deposit $10,000.
  • Barclays - 3.25% annual, $0 minimum deposit.
  • Capital One - 3.25% per annum, $0 minimum deposit.
  • Bethpage Federal Credit Union - 3.25% per annum, $50 minimum deposit.
  • Marcus by Goldman Sachs - 3.25% per annum, minimum deposit $500.
  • Alliant Credit Union - 3.25% annually, minimum deposit $1,000.
  • BMO Harris - 3.25% annually, minimum deposit $1,000.
  • First Internet Bank of Indiana - 3.25% annual, minimum deposit $1,000.
  • TAB Bank - 3.25% per annum, minimum deposit $1,000
  • TIAA Bank - 3.25% annual, minimum deposit $1,000.
  • Discover Bank - 3.25% per annum, minimum deposit $2,500.
  • LendingClub Bank - 3.25% annually, minimum deposit $10,000.
  • Sallie Mae Bank - 3.25% annually, minimum deposit $2,500.
  • Citizens Access - 3.25% per year, minimum deposit $5,000.

Note: Annual rates of return (APRs) shown are through September 13, 2022. Empire Finance Pro's editorial team updates this information regularly, usually every two weeks. APRs may have changed since the last update and, for some products, may vary by region.

A closer look at the best 5-year CD rates

Bread Savings - Annual yield of 3.65 percent, minimum deposit of $1,500.

Bread Financial is an online bank that offers high-yield, five-year CD savings products.

Bread Savings is a product of Comenity Capital Bank, which has been in business for over 30 years. Comenity is a bank that has produced many branded credit cards.

Synchrony Bank - 3.50% annual yield, $0 minimum deposit.

Synchrony Bank offers competitive returns on 14 CDs. Synchrony promises that CDs funded within 15 days of opening will have higher yields if rates increase during this period.

The bank also offers a money market account and a savings account. Both offer competitive annual returns and do not require a minimum balance.

Popular Direct - 3.40 percent annual yield, minimum deposit of $10,000.

Popular Direct, an online bank, is a subsidiary of Popular Inc, a financial services company with a 120-year history. Popular Direct was formerly known as Banco Popular North America.

Popular Direct offers CDs with eight maturities, from three months to five years, and caters to serious savers, with a minimum deposit of $10,000 at opening. Interest is compounded daily. Popular Direct does not offer specialized CDs, such as CDs with or without penalties.

Popular Direct also offers a savings account with a competitive rate.

Barclays - 3.25% annual yield, $0 minimum deposit.

Barclays was founded in London over 300 years ago. Barclays does not require a minimum balance to open a CD online. It offers nine CD terms ranging from three months to five years. A savings account is also available.

Capital One - 3.25 percent annual yield, no minimum deposit

Capital One is an online bank that also has branches. It is based in McLean, Virginia.

Capital One offers nine competitive terms for regular CDs. CDs and Capital One's 360 Performance Savings Account have no minimum balance requirements.

Bethpage Federal Credit Union - 3.25 percent annual yield, $50 minimum deposit.

Bethpage Federal Credit Union is one of the largest credit unions in the United States, with about 438,000 members. It was opened in 1941 for Grumman employees. Anyone who opens a $5 savings account can become a member.

Bethpage offers nine CD terms, ranging from three months to five years, and a 39-month Bump-Up CD.

Marcus by Goldman Sachs - 3.25 percent annual interest, minimum deposit of $500.

Marcus by Goldman Sachs is the online consumer banking unit of Goldman Sachs Bank USA. Marcus offers a variety of CDs, three penalty-free CD terms and a savings account, all with competitive yields. Marcus began offering CDs in 2017.

Marcus also offers debt consolidation, home improvement, and personal loans.

Alliant Credit Union - 3.25 percent annual yield, $1,000 minimum deposit.

Alliant Credit Union was founded in 1935 as United Airlines Employees' Credit Union. Today it has about 600,000 members nationwide.

Alliant offers competitive annual interest rates and low minimum balance requirements for CDs. Alliant also offers a number of CDs for individual retirement accounts (IRAs).

BMO Harris - 3.25 percent annual yield*, minimum deposit of $1,000.

BMO Harris is a regional bank that also offers online accounts. It is headquartered in Chicago and has over 500 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

BMO Harris offers CDs with terms ranging from one month to five years, each of which requires a minimum opening deposit of $1,000.

*Average annual yield is not available in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, and Wisconsin.

First Internet Bank of Indiana - 3.25 percent annual yield, minimum deposit of $1,000.

First Internet Bank of Indiana opened in 1999 and was the first FDIC-insured financial institution to operate entirely online, according to the bank's website. Its products are available in all 50 states.

First Internet Bank's products include CDs with eight term options, a money market savings account with a competitive yield, a savings account and two checking accounts.

TAB Bank - 3.25 percent annual yield, minimum deposit of $1,000.

Transportation Alliance Bank was established in 1998. In addition to offering eight CD terms-from six months to five years-it also offers a savings account, a money market account, and a checking account.

TIAA Bank - 3.25 percent annual yield, minimum deposit of $1,000.

TIAA Bank is a division of TIAA FSB and has nine branches, all in Florida.

TIAA offers CDs with maturities from three months to five years. It also offers a step-up CD, which allows for one-time rate increases as rates rise. For customers with large deposits who need extensive FDIC insurance coverage, TIAA Bank offers a service that allows them to insure more than FDIC limits by spreading the money over a network of banks.

Discover Bank - 3.25 percent annual yield, minimum deposit of $2,500.

Discover Bank is known for its credit cards, but it also offers a wide range of banking products, including checking accounts, money market accounts, and savings accounts. Discover Bank's CDs have maturities ranging from three months to 10 years.

The savings account offers a competitive annual return and does not require a minimum balance.

LendingClub Bank - 3.25 percent annual yield, $10,000 minimum deposit.

LendingClub Bank is a digital financial company offering banking products for individuals and businesses. It acquired Radius Bank in early 2021. In addition to the five CDs, LendingClub Bank also offers a high-yield savings account and a personal and business checking account.

Sallie Mae - 3.25 percent annual yield, $2,500 minimum deposit.

Sallie Mae Bank offers 11 CDs, savings accounts, money market accounts, credit cards and private student loans.

Sallie Mae Bank offers a competitive yield on all deposit products.

Sallie Mae Bank was founded in 2005 and is headquartered in Salt Lake City, Utah. In 2014, Sallie Mae became an independent consumer banking company.

Citizens Access - 3.25 percent annually, minimum deposit of $5,000.

Citizens Access made its debut in 2018. It offers five CD terms and a savings account. The five-year CD is the longest.

A minimum of $5,000 is required to open a CD or savings account at Citizens Access.

How to find the best rates for five-year CDs.

Savers looking for the best CD rates will probably want to venture online. Even if a bank is relatively small or little known, if it is a member of the FDIC, you can rest easy knowing that each depositor (i.e., you) is protected for at least $250,000 per insured bank. For a National Credit Union Administration (NCUA) institution, the standard amount of insurance is $250,000 per shareholder (depositor), per insured credit union, per ownership class (account type).

One thing to look for, however, is ease of use. Banks that make it difficult or time-consuming to deposit and withdraw funds can delay until you lose the benefit of a few extra basis points of interest on your savings. (One basis point equals 0.01%, so 1% equals 100 basis points).

What to consider when choosing a CD

Consider these elements to help you choose the right CD:

  • Early withdrawal penalties: it is good to know the penalties that may apply if you withdraw money before the CD maturity date.
  • Minimum deposit required: many CDs require a minimum deposit at opening.
  • ANNUAL PERCENTAGE YIELD: The annual percentage yield is the annual interest earned if you keep the money in the CD for the entire term of the contract. Compare APYs, rather than interest rates, to compare CDs.
  • Duration: the time it takes for interest to accrue on your money. In general, it is best to choose a CD with a shorter duration than you think you will need the money for. For example, if you need to access the funds in about two years, an 18-month CD may be a good choice.
  • Insurance: make sure the CD is offered by an FDIC-insured bank or NCUA credit union.

Frequently asked questions about 5-year CDs.

  • Advantages and disadvantages of 5-year CDs.
    Before choosing a five-year CD, weigh the pros and cons to see if it is right for you.


    • Limited liquidity. CDs do not allow immediate access to funds (unlike savings accounts), which may favor those who might be tempted to spend their money elsewhere. A CD can help you keep your savings intact. However, make sure that you do not need the money before the CD expires. It is also important to understand the early withdrawal penalty you will incur if you have to withdraw funds early.
    • Security. CDs from banks and credit unions insured by the FDIC are backed by the full faith and credit of the U.S. government up to $250,000.
    • High yield. Banks generally offer a higher average annual yield for a five-year CD than a traditional savings account or a shorter-term CD.
    • Wide choice. You can choose from thousands of banks and credit unions to find a CD with an interest rate, maturity date and minimum deposit amount that meets your needs.
    • Fixed and predictable returns. Once you invest your money in a CD, you are guaranteed a fixed return on a specific date, which can help you plan your financial goals.


    • Limited liquidity. The inability to access funds instantly is a disadvantage for those who may need the money before the CD expires. There is usually a penalty fee for early withdrawal. If you think it likely that you will need the money in less than five years, consider a CD or a shorter-term savings account.
    • Inflation risk. Money in a CD can lose its purchasing power over time if inflation exceeds interest income. (Note: Supply chain problems and other economic factors have recently led to price increases in the current COVID-19 pandemic.)
    • Low relative returns. Other investment options may offer a higher rate of return. However, these investments generally carry more risk, including the possibility of losing principal. If you leave your money in the CD for its full term with an FDIC-insured bank and follow FDIC guidelines, your fixed-rate CD will earn that return. The same is true for NCUSIF-insured credit unions.
    • Reinvestment risk. If you put your money in a five-year CD, you will have to wait a long time before you can use it. If interest rates rise in the meantime, you will not be able to invest in a higher-rate CD.
  • Alternatives to five-year CDs
    • Short-term CDs: Short-term CDs allow you to accrue interest and potentially benefit from rising rates at maturity. One-year and 18-month CDs allow faster access to one's money, but the trade-off is usually a lower annual return.
    • Savings accounts: the main advantage of a savings account is its liquidity, which allows immediate access to funds without penalty. Savings accounts generally have lower and variable annual returns.
    • Money market accounts: these accounts allow you to access your money (without penalty) while offering higher yields than most savings accounts. Many institutions require a relatively high minimum opening balance, but this can also mean a higher interest rate. Some accounts may charge a fee if the account is closed within 90-180 days.
    • Bonds: if you are comfortable with higher risk, you may consider investing in bonds. There are several types, including municipal bonds, corporate bonds, and agency bonds.
  • Who should open a 5-year CD?
    Long-term investment instruments, such as five-year CDs, generally offer higher returns than short-term CDs. However, because of the flat yield curve, you will not earn much more by choosing a long-term CD over a medium-term CD. A five-year CD is ideal for retirees and savers who do not need to invest funds for at least half a decade. The decision to buy a five-year CD depends on your time horizon and financial goals.
  • Why choose a 5-year CD?
    A five-year CD may offer one of the best yields available, as longer maturity CDs tend to have higher rates. A five-year CD may be a good option if the annual yield is higher than what can be found elsewhere and if you are able to leave funds on deposit for the term of the contract. A five-year CD can also be part of a CD ladder that contains shorter-term CDs, such as one-, two-, three-, and four-year CDs. A CD ladder staggers maturities and annual rates, allowing higher yields and access to liquidity at regular intervals.
  • Is a 5-year CD versatile?
    With a five-year CD, savers earn a premium over the normal rate of a traditional savings account. The disadvantage, of course, is that you will have to pay a penalty if you withdraw your money earlier than expected. However, if you can find a CD with a low penalty of just a few months, the higher interest rates offered by five-year CDs can make them a good choice over shorter maturities, even if you think you will have to cash out the CD sooner.
  • Is a 5-year CD profitable?
    There are two factors that determine whether a five-year CD makes sense for you: when you will need your money and whether you can get a competitive annual return. The term is important because you want to make sure you do not incur an early withdrawal penalty. You also need to take inflation into account and buy a CD that can keep up with returns.
  • Can a 5-year CD lose value?
    A five-year CD can lose value if you incur an early withdrawal penalty, which can reduce the principal. But if you keep the five-year CD for the entire term, you will get the interest shown, assuming it is a fixed-rate CD. Each depositor is insured for a minimum amount of $250,000 per FDIC-insured bank. The standard amount of insurance is $250,000 per shareholder, per insured credit union, per account type at NCUA institutions.

Methodology for Empire Finance Pro's best CD rates

At Empire Finance Pro, we are committed to helping you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is carefully vetted for accuracy.

Empire Finance Pro regularly surveys about 70 popular financial institutions, including major banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial staff analyzes several factors, such as: the annual return, the minimum deposit required to earn that annual return (or to open the CD), and the wide availability. All accounts presented on this page are insured by the Federal Deposit Insurance Corp (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF).

When choosing the right CD for you, think about how and when you will use the money to avoid early withdrawal penalties.

Jessica Parker
Written by
Jessica Parker
Loans, Mortgage, Insurance
Jessica Parker is a senior content creator with years of copywriting experience. She joined Empire Finance Pro in 2018. She holds a Master’s degree in journalism from Northwestern University, and her work has appeared in a number of top-tier finance publications including Forbes, FinancialTimes and Bloomberg.