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The 10 best 5-year CD rates for February 2023

December 1, 2022, 3:57 PM UTC
Updated January 31, 2023, 6:54 PM UTC
We ranked our top 10 five-year CDs for you to consider on the heels of the Fed’s latest rate increase.
Illustration by Tim Boelaars

When you’re looking for a place to park your cash, there are several types of savings vehicles you can consider that will not only keep your money safe, but help it grow at a faster rate. One popular account type: a certificate of deposit (CD). These accounts are usually offered at most banks and credit unions and come in all shapes and sizes. 

In exchange for putting your funds in a CD and agreeing to leave that money untouched for a certain amount of time, you’ll benefit from a higher APY than you’d get with a savings account. For anyone who struggles with dipping into their savings account from time to time, this could be your best bet for hitting some of your financial goals. And some CD term lengths can be as short as a few days, or as long as 10 years. If you’re looking for something a little longer-term—we’ve got you covered with our list of five-year CDs. 

The Fortune Recommends editorial team ranked more than 40 CDs with five-year terms and came up with a list of our top 10 picks. We weighed minimum deposits to open an account, annual percentage yields (APYs), compounding frequency, and customer service options. (Read our full methodology here.)

  1. Ally Bank
  2. CFG Bank
  3. Quontic Bank
  4. Barclays Bank 
  5. Synchrony Bank 
  6. American Express
  7. Bread Savings 
  8. Bethpage Federal Credit Union
  9. PenFed Credit Union 
  10. Discover Bank CD

The top 10 5-year CD rates

Here is our list of the best five-year CDs according to Fortune Recommends editors. Note: Minimum deposit requirements, APYs, and other numbers in our list are up to date as of Jan. 13, 2023, but are subject to change.

1. Ally Bank: For savers who don’t want to be tied to a minimum balance

Ally Bank is an online-only bank that offers a wide range of financial products and services including checking and savings accounts, credit cards, auto loans, personal loans, robo-advisors, and more. Despite the lack of physical branches, Ally offers customers free access to a network of more than 43,000 ATMs and 24/7 customer service assistance depending on the product.

Key numbers
Minimum opening deposit: $0
5-year APY: 4.35%

Penalty: The early withdrawal penalty for CDs with term lengths of 49 months or longer is 150 days of interest. 

Why we picked it: Ally’s 5-year CD rate currently sits at 4.35%, which is competitive but still not the highest rate on our list. It took the top spot for having the highest APY while requiring a $0 minimum deposit—so even new savers can choose how much they feel comfortable setting aside, while still benefiting from Ally’s stellar APY. Interest on these CDs compounds daily, and customer service reps are available 24/7 via phone, chat, or email. 

2. CFG Bank: For savers who want to know which account has the highest APY 

CFG Bank is a Maryland-based community bank that offers online accounts to customers across the U.S. including CDs, money market accounts, and more. The bank has a wide network of more than 40,000 surcharge-free ATMs as well as a highly-rated mobile banking application available for download on the Apple App Store and Google Play. 

Key numbers
Minimum opening deposit: $500
5-year APY: 4.60%

Penalty: There is an early withdrawal penalty equal to 180 days’ interest. 

Why we picked it: CFG’s 5-year CD boasts the highest APY on our list at 4.60%. For savers looking to take advantage of recent rate hikes and higher APYs, this account may be a solid contender. Interest on this CD compounds daily, which will give your savings even more opportunities to grow. The downside is that this account does require a $500 minimum deposit. CFG scored lower on our customer service scale: Customers can only get phone and email support Monday through Friday between 8:30 a.m. and 5 p.m. EST. 

3. Quontic Bank: For savers who enjoy fintech perks but still want a community-bank feel 

Quontic began as a community bank in New York City in 2009 and is now a full-fledged digital-first bank. It identifies as a hybrid between a community bank, a fintech, and a neobank, with product offerings including checking and savings accounts as well as home loans. 

Key numbers
Minimum opening deposit: $500
5-year APY: 4.45%

Penalty: For CDs with terms over 24 months, the early withdrawal penalty is equal to two years’ interest. If the accrued interest is greater than the penalty amount, the remaining interest over the penalty amount will be paid to you. If the accrued interest is less than the penalty amount, the rest may be taken from your principal balance. 

Why we picked it: Quontic’s 5-year CD took a spot on our list for its 4.45% APY and relatively lower minimum deposit compared to some of the other accounts on our list. Plus, interest on this CD compounds daily, meaning that your funds have more opportunities to grow. Customer service representatives are available via email or telephone, Monday through Friday from 9:00 a.m. to 6:00 p.m. EST. 

4. Barclays Bank: For savers who don’t mind banking across the pond

Barclays Bank is based in the U.K., but open to customers around the globe who want to open an online savings account or CD. 

Key numbers
Minimum opening deposit: $0
5-year APY: 4.30%

Penalty: For a CD account with a term of more than 24 months, a penalty equaling 180 days’ simple interest on the dollar amount withdrawn subject to penalty will be imposed. 

Why we picked it: Barclays Bank’s 5-year CD offers customers a 4.30% rate and a $0 minimum deposit, which makes this an attractive option for savers who are just getting started. Interest on these accounts is compounded monthly and customers can reach a representative for assistance 24/7 via phone. 

5. Synchrony Bank: For savers who are ready to lock up their funds and forget about them until their CD matures 

Synchrony Bank is an FDIC-insured online-only bank that looks to provide low-cost products to consumers by skipping the traditional brick-and-mortar model. Their product offerings include CDs, savings accounts, credit cards, and more. 

Key numbers
Minimum opening deposit: $0
5-year APY: 4.30%

Penalty: CDs with term lengths of 48 months or longer are subject to an early withdrawal penalty of 365 days of simple interest at the current rate. 

Why we picked it: Synchrony’s five-year CD took second place on our list because it has a slightly lower customer service score than our top pick. Still, this account boasts an even higher APY at 4.26% and doesn’t require a minimum opening deposit. 

The early withdrawal penalty is more than double Ally Bank’s, so savers should be mindful and select this account only if they are serious about not touching their funds. Synchrony customers can reach out via chat or automated phone service 24/7 for assistance. To speak with a live representative, Synchrony’s phone lines are open Monday through Friday from 8 a.m. to 10 p.m. EST, or weekends from 8 a.m. to 5 p.m. EST. 

6. American Express: For savers who prefer to do all of their banking with one institution 

American Express has a history that stretches back to 1850 and has since become globally recognized for their credit cards, rewards, personal, and business banking products. They also have a wide network of over 37,000 free ATMs. 

Key numbers
Minimum opening deposit: $0
5-year APY: 4.25%

Penalty: If you withdraw all of your principal balance or if the account is closed for any other reason before maturity, the penalty is 540 days’ interest on the amount withdrawn at the interest rate disclosed in your account-opening documents.

Why we picked it: The 5-year CD from American Express made our list for its higher-than average APY and $0 minimum deposit. One con to beware of: this CD charges one of the highest penalties on our list for making an early withdrawal, so if you anticipate needing access to your money—it may not be the right CD for you. Customer support specialists are available 24/7 over the phone or via live chat. The Amex app is available for download on the Apple App Store and Google Play and has a 4-star rating on both platforms.

7. Bread Savings: For savers who aren’t new to the savings game

Bread Savings is an online-only bank that’s part of the Ohio-based financial services company Bread Financial. Their product offerings include two types of deposit accounts: a high-yield savings account and a few different CD options. Bread Savings does not have any brick-and-mortar locations, but does not have an ATM network. 

Key numbers
Minimum opening deposit: $1,500
5-year APY: 4.50%

Penalty: For terms four years and up, the penalty is 365 days’ simple interest.

Why we picked it: Bread’s CD account had the second highest minimum opening deposit on our list, so this account may not be for newbies still growing their savings. However, this account did have the second-highest APY on our list. Interest on this CD compounds daily, and customers aren’t charged for monthly maintenance. 

Because Bread Savings doesn’t have any physical locations, this account is best suited for savers who prefer online or mobile banking. For assistance, customers can contact Bread Savings via chat support or by telephone on weekdays between 7 a.m. and 9 p.m. CST, and weekends and most holidays from 9 a.m. to 5 p.m. CST. 

8. Bethpage Federal Credit Union: For the saver who prefers a credit union and a low opening deposit 

Bethpage Federal Credit Union is a New York–based credit union that offers a number of financial products including checking accounts, money market accounts, credit cards, and more. There are more than 30 branch locations around the New York-area.

Key numbers
Minimum opening deposit: $50
5-year APY: 4.00%

Penalty: The penalty will equal 180 days’ dividends on the principal amount withdrawn.

Why we picked it: Bethpage’s 5-year CD had one of the lowest opening deposits on our list at $50 to open an account with a 4.00% APY. Plus, interest on this account compounds daily. Customers can ask questions about their account by calling Bethpage via phone on weekdays between 7:30 a.m. and 7 p.m. ET, and on Saturdays between 8 a.m. and 2 p.m. 

9. PenFed Credit Union: For savers who like having the best of both banks and credit unions

Pentagon Federal Credit Union (PenFed) is a credit union based in Virginia that offers online banking options in addition to a few brick-and-mortar locations across the U.S. 

Key numbers
Minimum opening deposit: $1,000
5-year APY: 3.90%

Penalty: If the certificate is redeemed within the first year, all dividends will be forfeited. If after the first year, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.

Why we picked it: Its CD made our list thanks to its 3.90% APY, daily compounding frequency, and stellar customer service score. For customers who prefer a credit union over a traditional bank, while also having access to a mobile banking platform, PenFed may be a viable option. 

Heads up: PenFed’s early withdrawal penalty is one of the more strict penalties on our list. Touching your funds early could mean forfeiting all of your dividends. Customers can contact PenFed by email, chat, or phone Monday to Friday, 7:00 a.m. to 11:00 p.m. EST; 8:00 a.m. to 11:00 p.m. EST on Saturday; and 9:00 a.m. to 5:30 p.m. EST on Sunday.

10. Discover Bank: For long-time savers who want to grow their balance quickly with a lucrative APY 

Founded in 2000, Discover Bank offers a range of products including checking, savings, money market accounts, and certificates of deposit (CD). Account holders also have access to more than 60,000 fee-free ATMs across the country. 

Key numbers
Minimum opening deposit: $2,500
5-year APY: 4.40%

Penalty: The penalty for withdrawing before your 5-year CD matures will be equal to 18 months’ simple interest. 

Why we picked it: Discover Bank’s 5-year CD ranked at the bottom of our list because of its high minimum opening deposit. At $2,500, this account may not be the right fit for new savers. However, for savers who already have some cash stashed away, this account’s 4.40% APY could help them supercharge those savings even more. Discover customer service representatives are available by phone 24/7 every day of the year. The bank can also be reached by mail at its Riverwoods headquarters. The bank does not offer walk-in service at its Illinois offices.

What is a 5-year CD?

A five-year CD is essentially a savings account that ties up your money for five years (or 60 months) in exchange for a competitive APY. The catch: You agree to not make a withdrawal until your account reaches its maturity date at the end of your term, or you’re forced to pay a penalty. CDs come with a wide range of term lengths, and five-year CDs tend to be the longest term length offered by financial institutions, although some banks and credit unions offer longer terms. 

When your maturity date rolls around, you can choose what to do with your principal balance and any interest you earned over the course of those five years. Some savers might be ready to spend, or they might choose to roll over their funds into a new CD or a high-yield savings account

Are CD rates going up?

The short answer is: It depends. The Fed raised the federal funds rate several times in 2022 and could continue to do so this year. While this rate doesn’t directly change the interest rate on savings products, banks and credit unions tend to raise rates on their savings products when this happens, to attract new customers. When the federal funds rate goes up, borrowing becomes more expensive and consumers are more likely to hold off on financing major purchases with loans or lines of credit. When spenders become savers, banks try to make it worth their while by raising APYs on deposit products. 

However, this isn’t universal truth across all deposit accounts, so be sure to read the fine print and shop around to make sure you secure the highest APY on a CD. 

Best CD rates for other terms

Our methodology

The Fortune RecommendsTM team compared five-year certificates of deposit (CDs) from more than 50 major banks, credit unions, and online-only banks. Our top picks are available across the U.S., so you can sign up for an account no matter where you’re located. 

We ranked the best five-year CDs on the following categories:

  •  Five-year term (50%): This number represents the real rate of return on your balance; the higher the APY, the better. 
  • Minimum deposit requirement (30%): In order to open a CD at any financial institution, it will require that you deposit a minimum dollar amount.
  • Compound frequency (15%): Interest on deposit accounts like CDs can compound daily or monthly. The more frequency interest compounds on your CD, the better.
  • Customer service (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email; phone support was most highly rated by our team. 

The best CDs offer APYs twice the national average. We didn’t include brokered CDs on our list, which are sold on the secondary market through brokerages instead of banks and can be riskier because of this.

The rates, fees, and minimum deposit requirements for CDs are available for limited time periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank and credit unions on this list are insured by the FDIC and NCUA respectively. Should you choose to terminate your CD before it matures, you may likely be subject to a penalty, which varies by bank.

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EDITORIAL DISCLOSURE: The advice, opinions, or rankings contained in this article are solely those of the Fortune Recommends editorial team. This content has not been reviewed or endorsed by any of our affiliate partners or other third parties.