Best 5-year CD rates for January 2025

Written by
Karen Bennett
Edited by
Yuliya Goldshteyn
Reviewed by
Allyson Johnson

Rates updated between Jan. 19 and Jan. 25 | Content updated Jan. 16

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A certificate of deposit is a financial product that allows you to stash away some cash and earn a fixed rate of interest for a set period of time. In exchange for handing over your money for a specified and longer term, you usually earn a higher interest rate. For example, a five-year CD can earn a higher (and guaranteed) rate than a typical savings account while still offering safety. The average 5-year CD yield is 1.39 percent APY, according to Bankrate’s national index survey of banks on Jan. 6, 2025, but Bankrate’s team shopped around to find some of the best CD rates available nationwide.

Current 5-year CD trends Caret Up Icon Caret Down Icon

Bankrate Partner average
3.75% APY
National average
1.41% APY
Info Icon
CD rates remain high, but are projected to move lower.
The Fed is predicted to continue cutting rates in 2025. Read more from Bankrate's experts in our CD rates forecast.
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Bankrate's picks for top 5-year CD rates

Note: Annual percentage yields (APYs) shown were updated between Jan. 19 and Jan. 25. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

SchoolsFirst Federal Credit Union_logo

SchoolsFirst Federal Credit Union

4.5 Bankrate CD score

  • Annual percentage yield

    4.25%

  • Min. deposit to open

    $500

Why SchoolsFirst Federal Credit Union?

SchoolsFirst Federal Credit Union was formed during the Great Depression in 1934. SchoolsFirst Federal Credit Union (SchoolsFirst FCU) has CD terms from as short as 30 days to as long as five years. If you put in more money you may be rewarded with a higher APY, as SchoolsFirst has five rate tiers: $500, $20,000, $50,000, $100,000 and $250,000.

America First Credit Union_logo

America First Credit Union

5.0 Bankrate CD score

  • Annual percentage yield

    4.25%

  • Min. deposit to open

    $500

Why America First Credit Union?

America First Credit Union was founded in 1939 in Salt Lake City. It has CDs with terms ranging from three months to five years. The minimum opening deposit for CDs is $500. It also offers a variety of checking and savings accounts.

Synchrony Bank_logo

Synchrony Bank

4.9 Bankrate CD score

  • Annual percentage yield

    4.15%

  • Min. deposit to open

    $0

Why Synchrony Bank?

Synchrony Bank offers competitive yields across nine CD terms. Its CDs generally earn a competitive yield. Synchrony Bank offers many terms of CDs with terms ranging from three months to five years. Synchrony Bank also offers an 11-month no-penalty CD and a two-year bump-up CD. The bank also offers a money market account and a savings account. Both offer a competitive APY and have no minimum balance requirement.

Popular Direct_logo

Popular Direct

4.0 Bankrate CD score

  • Annual percentage yield

    4.10%

  • Min. deposit to open

    $10,000

Why Popular Direct?

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 130-year-old financial services company. Popular Direct was previously known as Banco Popular North America. Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Interest compounds daily. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

Bread Savings_logo

Bread Savings

3.5 Bankrate CD score

  • Annual percentage yield

    3.85%

  • Min. deposit to open

    $1,500

Why Bread Savings?

Bread Financial is an online-only bank that offers high-yield savings products and five CD terms. Bread Savings is a product of Comenity Capital Bank, which has existed for more than 20 years. Comenity is a bank behind many branded credit cards.

TAB Bank_logo

TAB Bank

4.1 Bankrate CD score

  • Annual percentage yield

    3.81%

  • Min. deposit to open

    $1,000

Why TAB Bank?

TAB Bank was established in 1998 in Ogden, Utah, as a banking service inside truck stops. TAB (Transportation Alliance Bank) serves businesses and individual customers. It offers several checking accounts, a savings account, a money market account and CDs in six terms, from 12 months to five years.

Golden 1 Credit Union_logo

Golden 1 Credit Union

4.5 Bankrate CD score

  • Annual percentage yield

    3.80%

  • Min. deposit to open

    $500

Why Golden 1 Credit Union?

As one of the largest credit unions in the US, Golden 1 Credit Union offers share certificates with terms in monthly increments ranging from three months to five years, making it easy for consumers to find a term for their financial goals. What's more, all terms have a reasonable minimum opening deposit of $500.

Marcus by Goldman Sachs_logo

Marcus by Goldman Sachs

4.9 Bankrate CD score

  • Annual percentage yield

    3.75%

  • Min. deposit to open

    $500

Why Marcus by Goldman Sachs?

Marcus by Goldman Sachs is an online bank known for offering CDs and a savings account. It also used to be known for its personal loans, but it no longer offers those. Not many banks can match the number of CDs that Marcus offers. It has nine terms of regular CDs — ranging from six months to six years — three no-penalty CDs and a rate bump CD. All of these CDs have a $500 minimum deposit requirement.

First Internet Bank of Indiana_logo

First Internet Bank of Indiana

4.1 Bankrate CD score

  • Annual percentage yield

    3.65%

  • Min. deposit to open

    $1,000

Why First Internet Bank of Indiana?

First Internet Bank of Indiana is an FDIC-insured financial institution that operates online and has no branches. It opened in 1999 and offers products in all 50 states. First Internet Bank offers eight terms of CDs, a money market savings account with a competitive yield, a savings account and two checking accounts.

Alliant Credit Union_logo

Alliant Credit Union

4.7 Bankrate CD score

  • Annual percentage yield

    3.65%

  • Min. deposit to open

    $1,000

Why Alliant Credit Union?

Alliant Credit Union was founded in 1935 as the United Airlines Employees’ Credit Union. It is one of the largest credit unions in the nation and has 800,000 members nationwide. Alliant offers eight terms of CDs with competitive APYs and a reasonable minimum deposit requirement. It also offers IRA CDs, a high-yield savings account and a high-yield checking account.

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Recent news about CD rates

The Federal Reserve lowered its benchmark federal funds rate by a quarter of a percentage point, or 25 basis points, during its December 17-18 meeting. This placed the target range for the federal funds rate at 4.25 – 4.50 percent. Previously, the Fed lowered rates by 25 basis points during its Nov. 6-7 meeting, setting the benchmark range to 4.50 - 4.75 percent.

Although the Fed’s future rate decisions are uncertain, it’s still an opportune time to think about a long-term investment strategy. Some shorter-term CDs are currently offering higher rates, but a five-year CD can guarantee a high rate for a longer amount of time, and it may be worth considering as part of a CD ladder.

How to find the best 5-year CD rates

Savers looking for the best CD rates probably want to venture online. Even if a bank is relatively small or not well known, as long as it’s a member of the Federal Deposit Insurance Corporation (FDIC), you can rest easy knowing each depositor (that’s you) is protected up to at least $250,000 per insured bank, per ownership category if there’s a bank failure. You can find out if your bank is FDIC-insured by using the BankFind Suite tool.

Credit unions are insured by the National Credit Union Administration (NCUA). The NCUA also provides a standard nsurance amount of up to $250,000 per share owner (that’s you!), per insured credit union and for each ownership category (account type, such as single versus joint accounts).

One thing to look for, though: ease of use. Banks that make it difficult or time-consuming to deposit and withdraw funds may waste so much of your time that the benefit of a few extra basis points of interest on your savings is lost. (A basis point is 0.01 percent, so 1 percent has 100 basis points.)

When should you get a 5-year CD?

For those with a longer financial horizon and no need to access funds at a moment’s notice, a five-year CD can be a great choice. Because they earn a guaranteed rate for the whole term, five-year CDs are suitable for those who want to grow some of their savings over a half-decade, without the volatility associated with stocks or mutual funds. 

Before putting your money into a five-year CD, it’s important to understand its features and ensure it aligns with your savings goals, says Marc Colucy, senior director of banking operations at Bread Financial. “For instance, if you’re unsure if you will need the funds in the CD before it matures in five years, then a shorter-term CD might be a good option.”

CDs typically come with penalties for early withdrawal, so they’re best for those who are confident they won’t need to access their funds in the interim. If there’s a chance you’ll need the money for unexpected expenses or opportunities, it might be wise to explore more liquid, high-yielding savings accounts. 

Alternatively, you could invest some money in a five-year CD and some in shorter-term CDs to build a CD ladder, ensuring that a portion of your savings will be accessible in the shorter term. A CD ladder staggers maturities and APYs, giving you the opportunity to earn a higher yield and still have access to some cash at set intervals.

“With a CD ladder, rather than putting all your savings into one CD for a longer period, you’d instead put your money into multiple, smaller CD investments at varying term lengths,” Colucy says. “As each CD matures, you can withdraw the money and the interest you made without penalty. If you don’t need the cash right away, you could also decide to renew the CD for another term and keep earning interest, especially if rates are higher.”

“For longer time horizons, it can be a complicated decision process, with early withdrawal penalties being more of a factor. Typically, the longer the CD term, the higher the early withdrawal penalty. The penalty for a six- to 12-month term, for example, can be as low as two to three months of interest compared to a five-year term equaling six- to 12-months of interest.” — Sean Mason, Investment Advisor Representative, Fresno Financial Advisors

What to consider when choosing a CD

Consider these things to help you choose the right CD:

  • Early withdrawal penalties: Know what penalties may be incurred should you withdraw your money before the CD matures.
  • Minimum required deposit: Many CDs require a minimum amount of money to open.
  • APY: Annual percentage yield is the yearly interest earned if you keep your money in the CD for the full term. Compare APYs, instead of interest rates, to make an apples-to-apples comparison of CDs.
  • Term: The length of time required to earn interest on your money. Generally, it’s a good idea to choose a CD with a shorter term than when you expect to need your money. For example, if you need access to 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 at an NCUA credit union.

Pros and cons of a 5-year CD

Pros

  • Checkmark Icon

    Limited liquidity — CDs don’t provide immediate access to your funds (unlike savings accounts), which could benefit those who may be tempted to otherwise spend their money. A CD can help keep your savings intact. Just be sure you won’t need the money before the CD matures for such things as emergencies or living expenses. It’s also important to understand the early withdrawal penalty that you’d incur if you needed to withdraw your funds sooner.

  • Checkmark Icon

    Safety — CDs from FDIC-insured banks and NCUSIF-backed credit unions are backed by the full faith and credit of the U.S. government up to $250,000 per depositor, per insured institution and per ownership category.

  • Checkmark Icon

    High returns — Banks sometimes provide a higher APY with a five-year CD than you could find in a traditional savings account or in a CD with a shorter maturity.

  • Checkmark Icon

    Wide selection — You can choose from thousands of banks and credit unions to find a CD with the interest rate, maturity date (term) and minimum deposit amount that fits your needs.

  • Checkmark Icon

    Fixed, predictable returns — Once you put your money in a CD, you’re guaranteed a set return at a specified date, which can help you plan your financial goals.

Cons

  • Limited liquidity — The inability to instantly access funds is a drawback for those who may need their money before the CD’s term is up. You’ll typically pay a penalty for making early withdrawals. If you think it’s likely you’ll need this money in less than five years, consider a shorter-term CD or a savings account.

  • Inflation risk — The money in your CD may lose its purchasing power over time if inflation overtakes your interest gains.

  • Low relative returns — Other investment options may offer a higher rate of return. But these investments generally involve higher risk, including the chance of losing the principal. If you leave your money in the CD for the full term at an FDIC-insured bank and are within FDIC guidelines, your fixed-rate CD will earn that yield. The same is true for NCUSIF-backed credit unions.

  • Reinvestment risk — When you park your money in a five-year CD, it’s a long wait before you can tap those funds. If interest rates rise in the meantime, you could miss out on investing in a higher-rate CD.

Average CD yields are as follows, based on Bankrate data for Jan. 26, 2025:

  • 1-year CD average: 1.73 percent APY
  • 2-year CD average: 1.5 percent APY
  • 5-year CD average: 1.41 percent APY

When you’re in the market for a new CD, it’s important to look at all CD terms instead of assuming longer terms will earn more favorable APYs than shorter ones.

5-year CD FAQs

Research methodology

At Bankrate, we strive to help 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 thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. or the National Credit Union Share Insurance Fund.

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.