Should You Open a 5-Year CD in October 2025?
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A few weeks ago, the Federal Reserve cut interest rates for the first time this year, while also projecting a drop in rates through 2027 and beyond.
That means today's high certificate of deposit (CD) rates will soon be a thing of the past. The question for savers becomes: Is now the time to open a long-term CD?
The short answer is yes -- with some caveats. Here's what to know.
What to know before you open a long-term CD
A CD is a savings product where you deposit your money for a set period, then earn a guaranteed APY in return. With interest rates on the decline, now's the time to lock in a CD rate that might not be available again for months or years.
In the case of long-term CDs, you might put $10,000 in a 5-year CD that earns 4.00% APY -- which means you'd lock up your money for half a decade. When your CD matures, though, you'd earn about $2,167 in interest over the five years.
Here are some things to consider before you open a CD:
- Find the right term length: Longer-term CDs won't be right for everyone. Shorter-term CDs (3-12 months) give you quicker access to your cash, which means more flexibility.
- Shop around before you open: Online banks usually offer the highest APYs.
- Be disciplined: Don't take out your money if you don't have to. Most CDs charge a penalty for early withdrawals.
It goes without saying that putting money in a 5-year CD takes some discipline. If you can do it, though, you'll lock in a high APY that probably won't be available again soon.
Ready to get started? Check out our full list of the best CDs to lock in your rate today.
The best 5-year CDs available now
Synchrony Online CD: 4.00% APY
Synchrony offers one of the best 5-year CDs on the market: You'll earn 4.00% APY on your money for the next half-decade.
Synchrony Online CDs have no minimum deposit requirement, so you can get started with as little (or as much) as you want. Read our full Synchrony Online CD review for the full lineup of rates and terms.
Synchrony Online CD
On Synchrony Bank's Secure Website.
Discover® Bank CD: 3.50% APY
Aside from being one of the world's biggest banks, Discover® Bank also has some great CD offerings and a huge variety of terms, offering terms as short as 3 months, all the way up to 10 full years.
Right now, you can earn 3.50% APY on a 5-year CD, and like Synchrony Bank, there is no minimum deposit requirement to open these CDs. Read our full Discover® Bank CD review here for more.
Discover® Bank CD
On Discover Bank's Secure Website.
LendingClub CD: 3.40% APY
Finally, LendingClub is offering a 5-year CD earning 3.40% APY. It has the highest minimum deposit on this list -- $500 -- but if you can swing it, you can lock in a super-competitive rate.
LendingClub also offers an excellent rate on its high-yield savings account, so it's a great choice to make sure your money continues to earn top APYs in the current falling-rate environment. Read our full review of LendingClub CDs here and get started today.
LendingClub CD
On LendingClub's Secure Website.
Our Research Expert
Ryan Wilcox is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, auto insurance, and other personal finance topics. Ryan has been writing about credit cards and savings since 2022. Before joining Motley Fool Money, he was a full-time writer at The Points Guy, where he focused on maximizing credit card rewards and travel strategies. He holds a bachelor’s degree in English and American History from the University of North Carolina at Chapel Hill, where he also spent four years reporting for The Daily Tar Heel. With a background in both journalism and consumer finance, he brings a clear and thoughtful voice to money topics. Outside of work, Ryan is likely reading, writing, or updating his Letterboxd account.
Annual Percentage Yield (APY) is subject to change at any time without notice. Offer applies to personal non-IRA accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest in effect at that time. Visit synchrony.com/banking for current rates, terms and account requirements. Member FDIC.