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Long-term CDs allow you to lock in a competitive interest rate in exchange for a years-long commitment. Many financial institutions offer CD terms as long as five years, and recently CDs with these maturities have become a good pace to get a solid return. Withdrawing your funds before the five-year term ends can result in early withdrawal penalties, so be sure that you can afford to lock away your savings for this long.
| Bank Name | APY | Term | Min. deposit |
|---|---|---|---|
Quontic | 4.30% | 60 months | $500 |
Bread Savings | 4.15% | 60 months | $1,500 |
Ally Bank | 3.90% | 60 months | None |
Synchrony Bank | 4.00% | 60 months | None |
Discover | 3.75% | 60 months | $2,500 |
Capital One | 3.90% | 60 months | No minimum |
Marcus by Goldman Sachs | 4.00% | 60 months | $500 |
BMO | 4.50% | 60 months | None |
Our top recommendations
Quontic Bank: Best for tech-savvy customers
Quontic 5 Year CD
Quontic 5 Year CD
Founded in 2009, Quontic is a online-only bank based in New York City that offers banking and home lending products to customers in all 50 states. It started as a community bank and prides itself on tech-heavy features and services, like a wearable payment ring and its recent foray into the Metaverse.
If you’re interested in a bank that offers not only traditional CDs but also cutting-edge tech features, Quontic might be the answer. This digital financial institution is one of the few financial institutions that have jumped into the metaverse, and it also offers a pay ring, which works as a debit card. As for CDs, terms range from six to 60 months, all with very competitive rates and a minimum deposit of only $500.
Discover: Best for long-term savers
Discover 5-year CD
Discover 5-year CD
Perhaps best known for its credit card products, Discover is a full-service financial institution that also provides various banking products, including CDs. While Discover has no local branch locations, it offers online access to customers across the United States and has more than $141 billion in assets.
Discover Bank offers CD terms as long as 10 years, which is a longer duration offered than many of the other banks on this list. If you’re looking to lock in a competitive rate for as long as possible, this may be the bank for you.
Synchrony Bank: Best for no minimum deposit
Synchrony 5 year cd
Synchrony 5 year cd
Synchrony Bank is an online-only financial institution that offers a variety of savings, investment and consumer credit products and services to more than 70 million customer accounts. It manages over $62 billion in deposits through its CDs and savings and money market accounts and is insured by the FDIC, but it has no brick-and-mortar branch locations.
If you’re looking to maximize your CD without the restriction of a deposit requirement, Synchrony might be worth a look. This online institution offers CD terms from 3 to 60 months with competitive rates and no minimum deposit. There is also an 11-month no-penalty CD option available, if you’re interested in avoiding the potential of early withdrawal penalties.
Ally Bank: Best for online CDs
ally bank 5 year cd
ally bank 5 year cd
Ally Bank is one of the largest online financial institution in the United States. It has no brick-and-mortar branch locations, but serves its 11 million customers exclusively online. Ally has over $185.7 billion in assets held and is a top-25 financial holding company, with a range of depository and lending products and services.
Ally Bank CD terms are available from three to 60 months in length with no minimum deposit requirement. The bank offers loyalty rates on select CDs at renewal time as well as promotional and special term CDs on occasion, and even an 11-month no-penalty CD available.
Capital One: Best for branch access
Capital One Bank 5 year CD
Capital One Bank 5 year CD
Capital One is a top 10 US-based financial institution serving more than 100 million customers nationwide, with over $468 billion in assets held. Its online banking arm, Capital One 360, offers many banking products including high-yield savings accounts and CDs.
Capital One 360 is the online-only arm of Capital One, but still gives customers access to local branch locations when a personal touch (or a cash deposit) is desired. CD terms range from six to 60 months, each with competitive returns and no minimum deposit requirement.
Bread Savings: Best for CD renewal rates
Bread Savings 5 year CD
Bread Savings 5 year CD
Bread Savings is an online-only bank that bills itself as a tech-forward bank that is laser-focused on delivering high yields and seamless online transactions for customers. Bread only does a few things, specifically high-yield savings and certificates of deposit, but it aims to do them well. To open a CD of any duration requires a minimum of $1,500, which must be deposited in a single transaction. Bread Savings says it wants to reward customers, so it has a higher renewal rate for CDs with durations of 1, 2 and 3 years.
Bread Savings is held by Bread Financial Holdings Inc., which was created out of a company called Alliance Data in 2022. Alliance Data had its roots in retail store credit cards and airline loyalty programs. Its current incarnation as a holding bank for Bread Savings brings its focus on fintech and direct-to-consumer products into play allowing it to offer higher rates on its deposit products.
Marcus by Goldman Sachs: Best for promotional CDs
Marcus 5-year CD
Marcus 5-year CD
Marcus is the online banking arm of Goldman Sachs Bank, bringing this recognizable name on Wall Street into households across America. Through Marcus, customers can enjoy high returns on CDs and savings accounts, though there are no local branch locations.
Marcus has both standard and promotional CD options (including no-penalty CD options) with competitive rates on all terms, of which there are many to choose. There’s a low minimum deposit requirement, no-penalty CDs available and you can open a new account in just minutes online.
BMO Alto: Best for competitive rates with no minimum deposit
BMO 5 Year CD
BMO 5 Year CD
BMO Alto is the online-only banking branch of BMO (previously known as BMO Harris), currently the 13th largest bank in the country. While BMO Alto only operates online, BMO has more than 1,000 branches across the U.S. and serves more than 13 million banking customers globally, currently holding more than $1.29 trillion in assets.
BMO Alto offers a range of online CD terms, each with competitive interest rates that, in many cases, top the list compared to other financial institutions. There is no minimum deposit required either, which offers flexibility along with these top returns.
How we chose the best 5-year CDs
We compared certificates of deposit based on the following criteria: APY, minimum deposit, fees and penalties for early withdrawal. We also took the search volume on the brand name or bank name, and the ease of getting the CD.
Ultimately, we looked for CDs that offer the most value to customers.
Learn more about CDs:
Choosing the best 5-year CD: Where to begin
If you’re considering a five-year CD term, there are a few questions you should ask yourself first. Here are the most important considerations to keep in mind:
Do you have other liquid savings available?
Five years is a long time to lock your savings away, so it’s important to also have liquid and accessible savings somewhere else in case of an emergency or unexpected expense. Otherwise, you might find yourself withdrawing your CD funds before maturity and incurring early withdrawal penalties.
Would an online bank work for your needs or do you prefer a brick-and-mortar institution?
Many of the most competitive CD rates come from online banks, which don’t have local branch locations. If you prefer to manage your account or do most of your banking in person, you’ll need to choose a bank that has local branches.
When will you fund your account?
Some CDs have a 10-day funding lock while others may allow as much as 14 or even 20 days. This means that from the time you open your account and lock in your APY, you only have so many days for your funds to reach that institution. Be sure you have your money ready to transfer and know how long this process will take when shopping around.
What is a 5-year CD?
A five-year certificate of deposit (CD) is a savings product that offers a high rate of return in exchange for locking your funds away for a specific period of time (in this case, five years). Once that five-year period ends, your CD will either renew at then-current rates or you can withdraw the funds and use them however you want. If you need to touch the funds in a CD before it matures, you may incur penalties.
Alternatives to 5-year CDs
If a five-year CD doesn’t sound right for you and your savings, here are some alternatives to consider.
Choose shorter CD terms
Not sure if you can afford to put your savings in a CD for five whole years? Consider a shorter term. Most financial institutions offer CDs for as little as three months, to meet whatever projected needs you may have.
Build a CD ladder
A CD ladder allows you to maximize returns and enjoy constant liquidity with the help of multiple CDs, strategically selected and funded in a way that you always have access to cash you might need for emergencies.
Use a high-yield savings account
A high-yield savings account (HYSA) offers an APY that may rival that of a CD, while maintaining the liquidity and access of your funds.
Consider a money market account
With a money market account (MMA), you can earn competitive interest while enjoying many of the same benefits and features of a checking account, such as paper checks or debit card access.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.