Best 5-Year CD Rates of September 2024: Lock In Returns for the Longer Term

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The best 5-year CD rate is 4.32% APY from the Lafayette Federal Credit Union.

The best 5-year CDs far outpace the national average CD rate on 5-year terms, which is 1.42% APY (Annual Percentage Yield). Generally, online banks and credit unions offer the best CD rates.

The top 5-year CDs pay high interest rates. They also might have low minimum opening deposits, low early withdrawal penalties, and strong mobile banking apps to put them over the top.

A 5-year CD may be ideal if you don't need access to some of your savings for a few years. If you're also interested in other CD term lengths, check out our overall best CD rates guide.

We check rates daily to find the best rates for 5-year terms. Here are our top picks for 5-year CDs.

Best 5-Year CD Rates

• Lafayette Federal Credit Union 5 Year Certificate: 4.32% APY
• BMO Alto 5 Year High Yield CD: 4.10% APY
• Synchrony 5 Year CD: 4.00% APY
• Marcus 5 Year CD: 4.00% APY
• Alliant 5 Year CD: 4.00% APY
• LendingClub 5 Year CD: 4.00% APY
• MYSB Direct 5 Year CD: 4.00% APY
• Northern Bank Direct 5 Year CD: 4.00% APY

Compare the Best 5-Year CDs

The best 5-year CDs pay well above average CD rates for a 5-year term. We also highlight whether a CD stands out for a low minimum opening deposit and lenient early withdrawal penalties. If the bank or credit union also has other competitive CD terms, we mention them, too.

Our top picks for CDs are protected by FDIC or NCUA insurance. Money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

5-Year CD Reviews

Lafayette Federal Credit Union 5 Year Certificate

Lafayette Federal Credit Union pays a high interest rate on a 5-year term. It also offers competitive rates for its other certificate terms, including one of the best 3-year CD rates.

You only need $500 to open an account. Usually, you'll need at least $1,000 to open a CD at a financial institution. 

To open a certificate you must meet membership requirements. You can join Lafayette Federal Credit Union regardless of where you live in the United States by becoming a member of the Home Ownership Financial Literacy Council. You're also eligible for membership if you live, work, or worship in Potomac, Maryland, or parts of Washington, DC; work at a Select Employer Group; become a member of the American Consumer Council and live in Maryland, Virginia, or Washington, DC, or have a family member with credit union membership. 

APY for 5-year CD: 4.32% APY

5-year CD early withdrawal penalty: 600 days of interest

BMO Alto 5 Year High Yield CD

The BMO Alto High Yield CD may be a good choice if you'd like to open an online CD with a $0 minimum opening deposit. BMO Alto is the online-only division of BMO Bank, and its accounts are available nationwide.

BMO Alto doesn't have a mobile app. Also, you can't go to a BMO Bank location to get customer support for BMO Alto accounts. That said, customer service for BMO Alto is available 24/7 by phone.

APY for 5-year CD: 4.10% APY

5-year CD early withdrawal penalty: 180 days of interest

BMO Savings and CD Accounts

Synchrony 5 Year CD

Synchrony offers a good rate for its 5-year CD. Its required minimum opening deposit is $0, which is very rare for a CD. If you're hoping to put a small amount of money in a CD, this might be a good choice for you.

Synchrony's early withdrawal penalties can be high, depending on the term. If you think there's a chance you'll need to withdraw your money before the end of the term length, you might want to go with another bank.

APY for 5-year CD: 4.00% APY

5-year CD early withdrawal penalty: 1 year of simple interest

Synchrony Bank Review

Marcus 5 Year CD

Marcus offers a good rate for 5-year CDs; it also requires a lower-than-average minimum opening deposit of $500. If you want to open a CD with a smaller amount of money, Marcus might be a good choice for you.

If you only want to use one bank for all of your financial needs, Marcus might not be your best choice. Marcus doesn't have a checking account, so you'll have to use another bank that does in addition to using Marcus.

APY for 5-year CD: 4.00% APY

5-year early withdrawal penalty: 180 days of interest

Marcus Bank Review

Alliant 5 Year CD

An Alliant Certificate may be a good choice if you're searching for a credit union that lets you open bank accounts from anywhere in the U.S.

Credit unions require you to become a member to open an account. The easiest way to become a member is to join Foster Care to Success. Alliant will cover the $5 joining fee. If you aren't interested in joining a credit union, we have banks on our list, too.

APY for a 5-year term: 4.00% APY

5-year early withdrawal penalty: 180 days of interest

Alliant Credit Union Review

LendingClub 5 Year CD

LendingClub offers good rates on multiple CDs, especially longer-term CDs. If you're hoping to open multiple CDs at the same bank, LendingClub might be a good choice for you.

LendingClub requires a higher-than-average minimum opening deposit of $2,500. If you're planning on opening a CD with a smaller amount of money, you might prefer a different CD.

APY for 5-year CD: 4.00% APY

5-year early withdrawal penalty: 180 days of interest

LendingClub Bank Review

MYSB Direct 5 Year CD

MYSB Direct CDs pay a competitive interest rate and have a low minimum opening deposit.  For example, you can get one of the best 2-year CD rates and 5-year CD rates at the institution. 

M.Y. Safra Bank is a New York-based financial institution that serves customers nationwide and its online-only division is MYSB Direct.

The bank compounds interest monthly, not daily. Depending on how much money you plan to keep in a CD, this may or may not make a significant difference. 

APY for 5-year CD: 4.00% APY

5-year CD early withdrawal penalty: 90 days of interest

Northern Bank Direct 5 Year CD

Northern Bank Direct has good rates on 18-month, 2-year, and 5-year CDs. If you're planning on opening multiple CDs with the same bank, Northern Bank Direct might be a good choice for you. It also has a low minimum opening deposit of $500.

Northern Bank Direct charges high early withdrawal penalties. If you think there's a chance you'll need to withdraw your money before the term length ends, you might want to go with another bank.

APY for 5-year CD: 4.00% APY

5-year CD early withdrawal penalty: 3 years of interest

Northern Bank Direct Review

Bank Trustworthiness and BBB Ratings

We've compared each company's Better Business Bureau score. The BBB grades businesses based on factors like responses to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:

Department of Commerce Federal Credit Union has an NR grade because the BBB says it has services that are outside the scope of what the BBB reviews.

MYSB Direct currently has an NR (No Rating) grade because the BBB doesn't have enough information to provide a rating.

Synchrony has an NR rating from the BBB because the business is currently responding to previously closed complaints.

BMO has been involved in one recent public controversy. In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO bought M&I Bank in 2011. 

Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have.

In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

In 2024, Alliant settled a class-action lawsuit, agreeing to pay $86,750 to the lawsuit's members. The lawsuit says that Alliant denied services to DACA recipients and other immigrants because of their citizenship status rather than their creditworthiness. By settling, Alliant does not admit wrongdoing.

What Influences the Best 5-Year CD Rates

Federal Reserve Policies

The Federal Open Market Committee, a branch of the Federal Reserve, is in charge of managing the federal funds rate. During at least eight meetings held per year, the FOMC assesses economic conditions and decides if the federal funds rate should be changed.

National CD rate trends are influenced by changes in the federal funds rate. CD rates often increase when the federal funds rate goes up, and CD rates will often decline when the federal funds rate drops.

Economic Conditions and Long-Term Outlook

The CD rate forecast for 2024 is that rates on all types of savings accounts are expected to decline. However, the exact time and pacing when CD rates will fall depends on economic conditions. Banks also have their own criteria for setting rates.

Furthermore, short-term CDs offer more competitive rates than long-term CDs because of the current economic environment. CD rate trends will likely shift once the Federal Reserve begins cutting rates. It's unclear when the Federal Reserve will start rate cuts, but paying attention to upcoming Fed meetings can help you stay up to date on news.

Competition and Individual Offers

Banks occasionally have promotions for specific terms, including 5-year CDs. If you're looking at a promotional CD, review the requirements needed to obtain the highest rate.

Sometimes, banks will only promotional CDs for new customers or customers who have specific bank accounts. You also might be required to deposit "new money." Each bank will define what new money means in the listed requirements, but generally, it refers to money that hasn't been deposited at their financial institution. 

Should You Lock In a 5-Year CD?

While there are other terms that pay higher CD rates, the best 5-year CDs still offer good rates overall. Experts recommend keeping money in a CD term that fits your savings goals, so if you need to keep your money in a relatively low-risk place for around 5 years, these CDs are a good match. 

A 5-year CD is also a great option if you're building a CD ladder. It can help balance out short-term CDs, since national CD rates trends are likely to shift. 

5-Year CD FAQs

Why You Should Trust Us: Expert Advice on Choosing the Best 5-Year CD

To learn more about what makes a good CD and how to choose the best fit, Business Insider consulted four experts:

BI

• Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
• Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
• Sophia Acevedo, banking editor, Business Insider
• Mykail James, MBA, CFEI, BoujieBudgets.com

Here's what they had to say about CDs.

How do you decide how long your CD term should be?

CDs come in different terms that range from months to years, and a 5-year CD is typically one of the longest terms available. When choosing the right term for you, start with how you're going to use the money, and when. If you're buying a house in five years and know you won't need the money until then, a 5-year CD might work for your needs — however, if you're buying that house in two years, you'll need to choose a shorter term.

Once you know when you'll need the money, you can take a look at available rates. Maybe you have some flexibility around when you'll need the money, and find it worth leaving in the bank an extra six months or year to get a higher rate.

Should you put money in a high-yield savings account, money market account, or CD?

You're allowed to have multiple types of accounts, and it's OK to put money in different places for different purposes. Perhaps you want a high interest rate on money you can access at any time for an emergency, so you put that emergency fund in a high-yield savings account. Then, you want a savings account from which you can make regular withdrawals, so you use a money market account. Finally, you want to keep a nest egg out of sight and out of mind while earning a strong interest rate, so you use a CD.

Choosing which type of account to use comes down to how you plan to use that money, and when.

Our Methodology: How We Chose the Best 5-Year CDs

Business Insider's personal finance team researched over 60 banks and credit unions to find the best 5-year CD rates. We reviewed each institution to find the most-well rounded banking options. For each account, we compared the minimum opening deposits, early withdrawal penalties, and interest rates. We also considered the overall banking experience at each bank by assessing customer support availability, mobile app ratings, and ethics.

Sophia Acevedo

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics. ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE Accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:

• Bank accounts
• Savings and CD rate trends
• Budgeting
• Saving
• How banks operate

EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.

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Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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