Best 5-Year CD Rates 2026 | Long-Term Certificate of Deposit

Rates current as of April 16, 2026. Always verify rates on the issuer’s website before applying.

About This Guide

The best 5-year CD offers the highest APY from an FDIC-insured institution with manageable early withdrawal penalties. Online banks and credit unions consistently offer higher rates than traditional brick-and-mortar banks. Before locking funds for 5 years, compare the long-term CD rate against high-yield savings accounts and shorter CD terms to ensure the premium justifies the commitment.

At a Glance

#	Product	Award	APY	Min Deposit	Monthly Fee

5-Year CD Rates (2026) Buying Guide

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How we evaluated these. We compared 5-year CD rates across APY, minimum deposit requirement, early withdrawal penalty, FDIC or NCUA insurance, and auto-renewal terms, cross-referencing Bankrate, NerdWallet, and FDIC BankFind data. Rates as of April 2026. FDIC insured up to $250,000. This content is for informational purposes only and should not be considered financial advice.

A 5-year CD locks in today's rate in exchange for tying up your money — in 2026 they're paying 4.5–5% at the best online banks, which beats most savings accounts but requires confidence you won't need that cash before the maturity date.

Five-year CDs currently yield 3.8-4.1% APY at online banks and credit unions — locking in that rate protects savers if the Federal Reserve cuts short-term rates during the term. On a $25,000 deposit at 4.0% APY for five years, compounded interest generates $5,416 in guaranteed, FDIC-insured earnings with zero market risk. The primary tradeoff is illiquidity: early withdrawal typically costs 150-180 days of interest, which at 4.0% on $25,000 is a $493-$590 penalty. This guide covers the highest current 5-year CD APYs, minimum deposit requirements, early withdrawal penalties by institution, and when a 5-year term makes more sense than building a short-term CD ladder to preserve some flexibility.

Affiliate disclosure: Some products featured are from partners who compensate us. This does not affect our ratings or editorial recommendations.

Five-year CDs occupy a specific niche in personal finance: they're for savers who want the security of a guaranteed rate and don't expect to need the money for 5 years. In a declining-rate environment, a 5-year CD locks in today's rate through rate drops. In a rising-rate environment, shorter-term CDs or a CD ladder may serve you better.

How 5-Year CDs Work

A certificate of deposit is a savings instrument offered by banks and credit unions. You deposit a lump sum for a fixed term (in this case, 5 years / 60 months) at a fixed annual percentage yield (APY). The bank guarantees that rate for the full term. At maturity, you receive your principal plus accrued interest — or can roll into a new CD at current rates.

Interest typically compounds daily or monthly and can be paid out periodically or reinvested. CDs at FDIC-insured banks are protected up to $250,000 per depositor per institution. NCUA-insured credit union CDs (called "share certificates") have equivalent protection.

Early Withdrawal Penalties: The Key Risk

The primary risk with 5-year CDs is that life circumstances change and you need the money early. Early withdrawal penalties for 5-year CDs typically range from 150 to 365 days of interest. On a large deposit, that penalty can be substantial. Before committing to a 5-year CD, verify the specific penalty at your institution and run the math on whether you'd still come out ahead vs. a high-yield savings account.

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Some banks offer "no-penalty CDs," but these typically pay lower rates than standard CDs and may only be available at shorter terms. If liquidity is a genuine concern, a CD ladder (spreading money across 1-year, 2-year, 3-year, 4-year, and 5-year CDs) provides both long-term rate exposure and periodic liquidity as shorter terms mature.

Where to Find the Best 5-Year CD Rates

Online banks consistently pay higher 5-year CD rates than traditional banks because their lower overhead costs translate to better yields for depositors. Credit unions are another strong source, often paying rates competitive with online banks. To find the best rate, compare across multiple online banks, credit unions open to anyone through a donation or membership, and direct bank offers not listed on aggregator sites.

Is a 5-Year CD the Right Choice?

A 5-year CD makes the most sense when: you have a specific savings goal 5+ years out (like a down payment or planned expense), you believe rates will fall and want to lock in current rates, and you've fully funded your emergency fund in liquid accounts first. If rates are expected to rise, shorter CDs rolled over repeatedly may outperform a single 5-year commitment.

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Related guides: Best 6-Month CD Rates, Best High-Yield Savings Accounts, Best Money Market Accounts, Best Online Banks, Best Savings Account for Emergency Fund.

How to Lock in the Best 5-Year CD Rate

CD rate shopping is one of the highest-ROI financial tasks a saver can perform. The rate differential between the best and worst 5-year CDs from insured institutions can be 1.5–2.5 percentage points — on a $50,000 CD, that's $750–$1,250 per year in additional interest with identical risk (both FDIC-insured). Online banks and credit unions consistently offer the highest rates; local traditional banks consistently offer the lowest. Always verify FDIC or NCUA insurance before opening a CD. The CD ladder strategy — dividing deposits across 1-year, 2-year, 3-year, 4-year, and 5-year CDs — provides both higher long-term rates and annual liquidity as each rung matures. This is better than a single 5-year CD for most savers who might need partial access to funds.

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This content is for informational purposes only and should not be considered financial advice. Consult a qualified financial professional before making major financial decisions.

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Frequently Asked Questions

Are 5-year CDs FDIC insured?

Yes — CDs at FDIC-member banks are federally insured up to $250,000 per depositor, per institution, per account ownership category. Credit union CDs (share certificates) are covered by the NCUA up to the same limits. If you have more than $250,000 to deposit, spread it across multiple institutions or account ownership categories to maintain full coverage.

What happens when a 5-year CD matures?

At maturity, you typically have a short grace period (7–10 days) to withdraw funds, transfer them, or choose a new CD term. If you do nothing, most banks auto-renew the CD at the current rate for the same term. Set a calendar reminder near the maturity date so you can evaluate current rates rather than getting locked into an auto-renewal at a potentially lower rate.

Should I choose a 5-year CD or a shorter-term CD right now?

The right choice depends on your view of future interest rates and your liquidity needs. If rates are high and expected to fall, locking in with a 5-year CD preserves today's rate. If rates are low or expected to rise, a series of shorter-term CDs that can be rolled over at higher rates may serve you better. Most financial advisors suggest a CD ladder strategy for money you plan to keep in certificates.

What is the penalty for withdrawing a 5-year CD early?

Early withdrawal penalties on 5-year CDs commonly range from 150 to 365 days of interest. For example, a 365-day penalty on a $50,000 CD earning 4.5% APY would cost approximately $2,250. Penalties vary significantly by institution — compare them before opening, not after. Some banks have unusually punitive penalties that can eat into principal if withdrawn early in the CD's life.

Can I add money to a 5-year CD after opening it?

Standard CDs do not allow additional deposits after opening. The rate and principal are fixed at the time of opening. If you want to add to your savings, you'd open a new CD (at the current rate) or use a high-yield savings account. "Add-on CDs" that permit additional deposits exist at some institutions but typically offer lower rates than standard CDs.

How is CD interest taxed?

CD interest is taxed as ordinary income in the year it is credited to your account or constructively received, regardless of whether you withdraw it. If your CD compounds interest but pays it at maturity, you still typically owe taxes on accrued interest each year. Your bank will issue a 1099-INT for any interest exceeding $10. CD interest held in an IRA is not taxed until withdrawal.

What credit score do I need to open a 5-year CD?

No credit check is required to open a CD. Banks do not pull your credit report for deposit accounts. You will need a valid ID, Social Security number, and the minimum opening deposit (which varies by institution, typically $500–$2,500 for competitive rates). Being in ChexSystems for past banking issues may affect your ability to open an account, but this is separate from your credit score.

How We Evaluate Financial Products

We compare financial products based on objective criteria: annual fees, APR ranges, rewards rates, sign-up bonuses, and key perks. We do not factor in issuer relationships or compensation when determining rankings. Products are ranked based on overall value for the target use case described on this page.

Rates and terms change frequently. We update these pages regularly, but always verify current rates directly on the issuer’s website before applying. APR ranges shown reflect the full possible range — your actual rate depends on your creditworthiness.

This content is for informational purposes only and should not be considered financial advice. We compare products; we do not advise on which product is right for your personal financial situation. Read our full methodology →

Affiliate disclosure: When you buy through our links, we may earn a small commission at no extra cost to you. This helps us keep the reviews free and the data updated. Our recommendations are based on data, not who pays us. Learn more →

Best 5-Year CD Rates (2026)