Best 5-Year CD Rates —
Top 5-year CD: at . Lock in elevated rates through 2031. Ranked by APY, early withdrawal penalty, and minimum deposit. No pay-to-rank.
The best 5-year CD rate today is at . A 5-year CD locks in today’s above-average rates through 2031 — if the Fed cuts further in 2026–2027, you’ll still be earning at today’s rate. The tradeoff: early withdrawal penalties on 5-year CDs are steep (typically 12–18 months of interest), so only commit funds you genuinely won’t need for five years.
How to pick a 5-year CD
5-year CDs are the longest standard retail CD term. As of , the best 5-year CD pays around . The use case is narrow: you have a defined goal five years out and want zero reinvestment risk on the funds. If you believe interest rates will be lower in 2027–2028 than they are today — which most forecasters expect — locking in today’s rate for five years is a defensible strategy for money you genuinely don’t need access to.
The risk: if rates rise significantly, you’re locked in. A CD ladder mitigates this — putting some money in 1, 2, and 5-year CDs means you always have a portion maturing and available to roll at higher rates.
5-year CD versus 5-year Treasury
The 5-year Treasury currently yields roughly the same as the best 5-year CD, but Treasury interest is exempt from state income tax. For a saver in California (9.3% top bracket), a 4.10% Treasury is roughly equivalent to a 4.52% CD on an after-tax basis. Run the numbers in the tax-equivalent yield calculator before locking into a 5-year CD if you live in a high-tax state.
Early withdrawal penalty warning
5-year CDs carry the highest early withdrawal penalties of any CD term — typically 12–18 months of interest, with some institutions charging 540+ days. On a $50,000 CD the difference between a 150-day and 540-day penalty is over $2,000. Check each card’s Early withdrawal field above and choose the institution whose penalty you can live with if circumstances change. Only open a 5-year CD with money you are certain you won’t need until 2031. If you’re unsure, a CD ladder or shorter term is the safer structure.
5-year CD in a CD ladder
A 5-year CD works best as the longest rung of a ladder. In a $50,000 ladder holding $10,000 each in 1, 2, 3, 4, and 5-year CDs, one matures every year. The maturing CD rolls into a new 5-year, keeping the ladder rolling. Within five years all rungs are at the 5-year rate, giving you maximum yield with one maturity per year and no long-term lock on all your savings simultaneously. Use the CD ladder calculator to model the exact payoff schedule.
Tax treatment of 5-year CD interest
Interest on a 5-year CD is taxed as ordinary income each year it is credited — not deferred until maturity. The bank issues a Form 1099-INT each January for interest paid in the prior year. Over five years you will receive five separate 1099-INTs. For large balances in high brackets, the compounding interest may push income into a higher bracket in later years. Consider discussing timing with a tax advisor before opening a long-term CD.
See also: Best 2-year CDs — Best long-term CDs — CD ladder calculator — Tax-equivalent yield calculator
The best 5-year CD rate today is at , updated daily. Check the cards above for full rankings with minimum deposits and early withdrawal penalties for each option.
Penalties vary significantly by institution — from around 150 days to 540+ days of interest. On a $50,000 CD, the difference between a 150-day and 540-day penalty can be over $2,000. Check the Early withdrawal field on each card above for the exact penalty per institution. Use the early withdrawal calculator to model the cost for your specific balance.
A 5-year CD guarantees the stated APY with FDIC insurance up to $250,000. A bond fund fluctuates in value as rates change and is not FDIC insured. For money you need to protect and grow at a predictable rate, a CD is the lower-risk option. For money where you can tolerate NAV fluctuation in exchange for potential capital gains if rates fall, a bond fund has advantages. They serve different risk profiles.
Yes. Every CD listed on this page is FDIC insured (banks) or NCUA insured (credit unions) up to $250,000 per depositor, per institution, per ownership category. For balances above the limit, use the FDIC insurance calculator to confirm coverage or consider splitting across multiple banks.
A single 5-year CD maximizes rate certainty but offers zero liquidity for five years. A CD ladder spreading money across 1 through 5-year terms gives you a CD maturing each year while still capturing the 5-year rate on the longest rung. For most savers the ladder is the better choice — it hedges against rate changes and provides rolling access to a portion of savings annually.