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Best 5-Year CD Rates of October 2022

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Five-year CD rates allow you to earn a guaranteed interest rate long term. While shorter CDs offer more flexibility, often you can score a higher APY with a 5-year CD. Here are the best 5-year CD rates we've found, what you should consider when choosing a CD, and alternative investments that let you earn money while keeping your funds more accessible.

Ratings Methodology
Rates as of Sept. 22, 2022
Best Certificates of Deposits (CDs) of October 2022 picks.
Bank & CD Offer APY Min. Deposit Next Steps
APY -5 Yr.:  3.25% Min. Deposit:   $2,500
APY -5 Yr.:  3.20% Min. Deposit:   $500
APY -5 Yr.:  3.25% Min. Deposit:   $0
APY -5 Yr.:  3.25% Min. Deposit:   $0
APY -5 Yr.:  3.30% Min. Deposit:   $500
APY -5 Yr.:  2.90% Min. Deposit:   $0
APY -5 Yr.:  3.65% Min. Deposit:   $1,500
APY -5 Yr.:  3.25% Min. Deposit:   $500
APY -5 Yr.:  3.25% Min. Deposit:   $1,000
APY -5 Yr.:  2.85% Min. Deposit:   $1,000
APY -5 Yr.:  3.05% Min. Deposit:   $2,500
APY -5 Yr.:  3.20% Min. Deposit:   $0
APY -3 Yr.:  2.70% Min. Deposit:   $0
APY -1.5 Yr.:  2.50% Min. Deposit:   $0
APY -1 Yr.:  2.30% Min. Deposit:   $0
APY -6 Mo.:  1.25% Min. Deposit:   $0
APY -4 Yr.:  1.20% Min. Deposit:   $0
APY -3 Yr.:  1.15% Min. Deposit:   $0
APY -2 Yr.:  2.75% Min. Deposit:   $0
APY -1.5 Yr.:  1.00% Min. Deposit:   $0
APY -4 Yr.:  3.15% Min. Deposit:   $0
APY -3 Yr.:  3.10% Min. Deposit:   $0
APY -2 Yr.:  3.00% Min. Deposit:   $0
APY -1.5 Yr.:  2.80% Min. Deposit:   $0
APY -1 Yr.:  2.70% Min. Deposit:   $0
APY -6 Mo.:  0.10% Min. Deposit:   $0
APY -4 Yr.:  3.60% Min. Deposit:   $1,500
APY -3 Yr.:  3.55% Min. Deposit:   $1,500
APY -2 Yr.:  3.50% Min. Deposit:   $1,500
APY -1 Yr.:  3.00% Min. Deposit:   $1,500
APY -4 Yr.:  2.80% Min. Deposit:   $0
APY -1.5 Yr.:  2.40% Min. Deposit:   $0
APY -5 Yr.:  0.50% Min. Deposit:   $1,000
APY -4 Yr.:  0.50% Min. Deposit:   $1,000
APY -3 Yr.:  0.40% Min. Deposit:   $1,000
APY -2 Yr.:  0.40% Min. Deposit:   $1,000
APY -1.5 Yr.:  0.30% Min. Deposit:   $1,000
APY -1 Yr.:  0.30% Min. Deposit:   $1,000
APY -6 Mo.:  0.30% Min. Deposit:   $1,000
APY -5 Yr.:  3.25% Min. Deposit:   $5,000
APY -4 Yr.:  3.00% Min. Deposit:   $5,000
APY -3 Yr.:  2.90% Min. Deposit:   $5,000
APY -2 Yr.:  2.80% Min. Deposit:   $5,000
APY -1 Yr.:  2.25% Min. Deposit:   $5,000
APY -4 Yr.:  3.15% Min. Deposit:   $2,500
APY -3 Yr.:  3.10% Min. Deposit:   $2,500
APY -2 Yr.:  3.00% Min. Deposit:   $2,500
APY -1.5 Yr.:  2.80% Min. Deposit:   $2,500
APY -1 Yr.:  2.70% Min. Deposit:   $2,500
APY -6 Mo.:  1.00% Min. Deposit:   $2,500
APY -4 Yr.:  3.20% Min. Deposit:   $500
APY -3 Yr.:  3.15% Min. Deposit:   $500
APY -2 Yr.:  3.10% Min. Deposit:   $500
APY -1.5 Yr.:  3.00% Min. Deposit:   $500
APY -1 Yr.:  3.00% Min. Deposit:   $500
APY -6 Mo.:  2.00% Min. Deposit:   $500
APY -4 Yr.:  3.10% Min. Deposit:   $500
APY -3 Yr.:  3.05% Min. Deposit:   $500
APY -2 Yr.:  2.85% Min. Deposit:   $500
APY -1.5 Yr.:  2.50% Min. Deposit:   $500
APY -1 Yr.:  2.30% Min. Deposit:   $500
APY -6 Mo.:  2.05% Min. Deposit:   $500
APY -3 Yr.:  3.00% Min. Deposit:   $500
APY -2 Yr.:  2.80% Min. Deposit:   $500
APY -1 Yr.:  2.50% Min. Deposit:   $500
APY -6 Mo.:  1.70% Min. Deposit:   $500
APY -3 Yr.:  3.05% Min. Deposit:   $2,500
APY -2 Yr.:  3.00% Min. Deposit:   $2,500
APY -1.5 Yr.:  2.80% Min. Deposit:   $2,500
APY -1 Yr.:  2.65% Min. Deposit:   $2,500
APY -6 Mo.:  1.75% Min. Deposit:   $2,500
APY -1 Yr.:  0.70% Min. Deposit:   $250
APY -4 Yr.:  2.80% Min. Deposit:   $0
APY -3 Yr.:  2.80% Min. Deposit:   $0
APY -2 Yr.:  2.60% Min. Deposit:   $0
APY -1.5 Yr.:  2.50% Min. Deposit:   $0
APY -1 Yr.:  2.30% Min. Deposit:   $0
APY -6 Mo.:  1.50% Min. Deposit:   $0
APY -4 Yr.:  3.10% Min. Deposit:   $1,000
APY -3 Yr.:  3.05% Min. Deposit:   $1,000
APY -2 Yr.:  2.85% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.50% Min. Deposit:   $1,000
APY -1 Yr.:  2.35% Min. Deposit:   $1,000
APY -6 Mo.:  1.75% Min. Deposit:   $1,000
APY -4 Yr.:  2.75% Min. Deposit:   $1,000
APY -3 Yr.:  2.65% Min. Deposit:   $1,000
APY -2 Yr.:  2.50% Min. Deposit:   $1,000
APY -1.5 Yr.:  2.40% Min. Deposit:   $1,000
APY -1 Yr.:  2.30% Min. Deposit:   $1,000
APY -6 Mo.:  1.30% Min. Deposit:   $1,000

How to find the best 5-year CD rates

To find the best 5-year CD rates, first look at the interest rate. You can easily discover the highest rates by checking out our list of the best CD rates from the top banks, along with rates for shorter CD terms, too.

How to compare the best 5-year CD rates

Most 5-year CDs offer the ability to earn a high APY. Right now you'll find top rates of between 0.70% to 1.20%APY. That's high compared with the current national average 5-year CDs as reported by the FDIC.

Here are some other factors besides APY to consider when comparing 5-year CDs.

Minimum deposit: Many CDs have no minimum deposit requirement. Some may require a commitment of several thousand dollars to open an account. Jumbo CDs may carry an even greater financial commitment.

Fees: You are unlikely to be charged maintenance fees on a CD. However, a few do carry these charges. Double-check for unexpected fees before you open an account.

Withdrawal penalties: If you end up needing funds before your CD fully matures, you might need to pay a withdrawal penalty. The amount you'll pay varies from bank to bank. It also depends on how close your CD is to maturity. Some banks waived CD penalties during the coronavirus crisis, but this was only a temporary measure. (You can check with a bank you're considering to see if the fees are still being waived.) If you think you might need the money sooner, weigh up the penalty you'll pay against the higher interest you'll earn.

Compounding interest: Interest on CDs usually compounds daily, weekly, or monthly. An account that compounds daily will earn you slightly more money in the long run because you'll be earning interest on your interest every day.

Interest payouts: A lot of CDs let you choose whether to add your interest to your account balance or receive a payout monthly, quarterly, or even annually. Some choose to receive the interest payout earlier and apply it toward taxes. This is because taxes are due on CDs each year -- regardless of maturity date. On the other hand, if you keep the money you earn in your CD until it reaches maturity, you'll earn more in interest.

CD maturity: Some banks automatically enroll you in a new CD upon maturity unless you specify another option. Banks are required to notify you before they do this to give you a chance to opt out. Your best bet is to stay in control of what happens to your money, regardless of whether or not you want to reinvest in a new CD. You don't want to end up with another 5-year term if the rate isn't ideal.

Make sure that the CD that you choose is FDIC insured, which will cover up to $250,000 per depositor. Although this seems like a given, it's always good to verify details like this -- especially during times when security is at a premium. CD funds held at credit unions are protected by the NCUA..

What to consider when choosing a 5-year CD

Opening a 5-year CD account can be a great investment, but it also has its drawbacks. Here are some pros and cons to opening a 5-year CD.

Pros Cons
Higher rates: Five-year CDs usually have higher interest rates than savings accounts. Because you can't touch your funds without paying a penalty, banks reward CD holders with better rates. Fixed rates: A fixed interest rate also means you may miss out on added savings. Even if market interest rates skyrocket, your CD's interest rate will stay the same. Rates may change considerably over 5 years. Opening a 5-year CD may tie you into a low rate long term.
Fixed rates: Most CDs have fixed rates, which means your interest rate is locked in for the entire 5-year term. It won't change even if market rates drop. Penalties: Tying up your savings for five years might not be the best idea if you can't afford to live without that money long term. You'll get hit with costly early withdrawal penalties if you touch your CD before it reaches maturity.
Predictable returns: Thanks to fixed rates, you can easily calculate how much interest you'll earn over 5 years. Inflation risk: There's always a chance that your earnings from a 5-year CD don't keep up with inflation. One way to protect yourself against this and the risk that interest rates increase would be to build a CD ladder. Laddering combines increased flexibility with the rewards of the higher APY on a 5-year CD.

Alternatives to a 5-year CD

Five-year CDs are a great way to earn a high interest rate over time. If you're worried about tying up your funds for that long, consider these two other bank account options.

High-yield savings accounts: These savings accounts offer comparable rates to CDs, but without the commitment to leave your money alone for a set period of time. Online banks are the perfect place to look for competitive rates. Plus, you'll be able to access your savings whenever you need.

Money market accounts: Think of a money market account (MMA) as a hybrid. It carries the interest-earning ability of a savings account and has the convenience of a checking account. The interest rates on money market accounts are often comparable to those of CDs. Unlike CDs, there are no time restrictions with money market accounts. Additionally, they usually come with a debit card and check-writing privileges. Money market accounts are a perfect place for your emergency fund -- you can earn interest and also access it easily.

COVID-19 and savings accounts and MMAs

Savings accounts and MMAs are generally more flexible than CDs. Right now, though, they are even more flexible than usual. The Fed has temporarily lifted the usual withdrawal restrictions due to COVID-19. That said, keep in mind that if interest rates drop even further, these accounts will follow suit. With a CD, your interest rate won't drop even if the market crashes.

If you are willing to commit to an even longer-term investment and able to take more risk, it might be worth thinking about other options.

Investments: While 5-year CDs earn decent rates, you may earn more money by investing your money with an online stock broker or in a retirement fund and letting it sit there long term. Remember: Stock values can rise and fall dramatically in the short term. This is not an option if you'll need your money soon.

Real estate: Real estate is typically a long-term investment, but so are 5-year CDs. There's a ton of work that goes into real estate investing, but some of this is mitigated by crowdsourcing platforms that have recently popped up.

There are a lot of advantages to putting money into a 5-year CD. You benefit from higher interest rates, you can rest knowing that your money is secure, and you don't suffer if market rates fall. Ultimately, whether or not a CD is right for you depends on when you might need to access your money and what other options are available to you.

Offer APY Min. Deposit
3.25% - 5 Yr. $2,500
3.20% - 5 Yr. $500
3.25% - 5 Yr. $0
3.25% - 5 Yr. $0
3.30% - 5 Yr. $500
2.90% - 5 Yr. $0
3.65% - 5 Yr. $1,500
3.25% - 5 Yr. $500
3.25% - 5 Yr. $1,000
2.85% - 5 Yr. $1,000
3.05% - 5 Yr. $2,500
3.20% - 5 Yr. $0

FAQs

  • A 5-year CD is right for people who won't need to withdraw funds before the 5-year term ends. You'll get hit with a penalty fee if you pull your funds before maturity. Some or all of the interest you've earned up until that point may disappear.

  • 5-year CDs typically offer a significantly higher APY than CDs with shorter terms. Depending on your initial deposit amount, you can earn more interest by opening a 5-year CD.

  • A 5-year CD is worth opening if you can afford to deposit funds and leave them untouched for that long. If not, then it's better to opt for a shorter term or reduce your risk through CD laddering.

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