Best Long-Term CD Rates — 2–5 Years
Top 5-year CD: at . Long-term CDs lock in today’s elevated rates through 2028–2031 against future Fed cuts. Ranked by APY, penalty, and minimum deposit. No pay-to-rank.
Best 5-year CD: from . Best 2-year: from . The yield curve has flattened, so long-term CDs now offer rates competitive with several short-term options — making them attractive for rate-cut protection.
The case for long-term CDs in
Long-term CDs serve a specific purpose: protecting against future rate declines. If you have money allocated to safe savings for 3–5 years, locking in today’s rate is more attractive than continually rolling 12-month CDs at potentially lower rates each year. With the top 5-year CD currently around and the top 2-year around , the long end of the curve is competitive with most short-term options.
Early withdrawal penalties on long-term CDs
Long-term CD penalties are substantial. Some 3–5 year CDs charge 365 to 730 days of interest for early withdrawal — a meaningful loss if you need the money before maturity. Penalty schedules vary significantly across institutions, so check each card’s Early withdrawal field above before opening. If there is any chance you’ll need the money, consider a no-penalty CD instead, even at a slightly lower rate. Use the early withdrawal calculator to model the exact break-even for any specific CD.
CD ladder strategy for long-term savers
Rather than putting all your long-term savings in a single 5-year CD, a CD ladder splits the money across multiple terms: 2-year, 3-year, 4-year, and 5-year. As each matures, reinvest at the current longest term. This gives you one maturity every 12 months while averaging near the long-term rate. Use the CD ladder calculator to model your specific amounts.
See also: Best 2-year CDs — Best 5-year CDs — No-penalty CDs — CD ladder calculator
Banks price longer-term CDs based on expected rates over the full term. When rate-cut expectations are modest, the long-term/short-term spread narrows. As of , the yield curve has flattened, so 2-year and 5-year CDs are now within a small spread of 12-month CDs. This is unusual historically and represents an opportunity for savers willing to commit longer.
Possibly, if you have money you are confident you will not need for 3–5 years. Rates are elevated historically and projected to decline gradually. Locking in today’s rate for 3–5 years protects you if HYSA and short-term CD rates fall. The risk: if rates unexpectedly rise, you are locked in lower. Early withdrawal penalties on 5-year CDs can cost hundreds of dollars per $10,000.
A no-penalty CD lets you close the account and withdraw funds before maturity without paying a penalty — typically after a short initial holding period of 6–7 days. The trade-off: rates are usually a few basis points below standard CDs. Useful if you want a locked rate without giving up emergency access to the funds. See the no-penalty CD rankings for all currently available options.
Each CD receives a composite score based on APY (primary factor), early withdrawal penalty relative to term length, and minimum deposit accessibility. No institution pays to appear or rank higher. See the full scoring methodology.
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 or consider splitting across multiple banks.