The Best 5-Year CD Rates of 2023

Annuity.org’s independent editorial staff evaluated 5-year certificate of deposit options from the country’s biggest banks and credit unions to determine the best rates in 2023.

They evaluated products from the 30 largest banks and 10 largest credit unions based on consolidated assets according to the U.S. Federal Reserve or National Credit Union Administration to determine which companies qualified for their rankings.

To be eligible, a bank or credit union had to provide 5-year CDs in all 50 states and be insured by either the FDIC or the NCUA. This resulted in 19 banks and credit unions, of which only 12 offered 5-year terms.

The staff only chose CDs offering more than 3.00% APY on 5-year CDs for their final comparisons, narrowing the list to just seven institutions.

The final choices were made based on APY, minimum deposit requirements, early withdrawal penalties and any bonuses or promotions offered by the institutions.

Learn more about our broader Editorial Guidelines.

Among the other institutions Annuity.org considered — with APYs of 3.00% or higher — there were some competitive choices among rates and minimum deposits.

Typically, online-only institutions or regional or community banks and credit unions with robust online presence had the highest overall rates.

Four other large commercial banks on our list were not considered because their advertised 5-year CD rates fell below our 3.00% APY threshold. These included Citibank, JPMorgan Chase and U.S. Bank.

The biggest differences between 5-year CDs and other terms are the amount of interest you may be able to earn and the amount of commitment you have to have.

Typically, longer-term certificates of deposit — such as 5-year CDs — offer higher rates. This is not always the case, especially, when economic forces cause a partial inversion of the U.S. Treasury curve, which we are currently experiencing. In any economic environment, make sure to compare different terms and different institutions’ offerings.

In some cases, you may find a shorter-term CD with a special or promotional rate. Sometimes shorter-term CDs may actually offer higher rates. But you won’t be able to lock them in for as long as with a 5-year CD. This is something to consider if interest rates fall.

At the same time, to earn this higher interest, you have to commit to leaving your money in the CD for longer than with other, shorter-term CDs. Early withdrawal penalties also tend to be higher for 5-year CDs than shorter-term options.

To decide if a 5-year CD is right for you, financial professionals recommend you balance the highest interest rate with the ideal length of time you can keep your money in savings.

Early withdrawal incurs a penalty, meaning a 5-year CD may only be suitable if you are sure that you won’t require the money tied up in the CD until it hits maturity.

If this is too long for your financial goals — or needs — you may want to expand your search to CDs with shorter terms that better align with your timeline but still offer competitive rates.

Talking with a financial advisor or other professional can help you decide which CD term best fits your personal finance plans.