A 5 Year CD (certificate of deposit) is a time deposit with a fixed rate for the entirety of the 60 month term. Upon maturity of the certificate you can withdraw the balance without penalty. 5 year CD’s are FDIC insured for up to $250,000. A penalty will typically be enforced for early withdraw of funds.
Banks offer daily, monthly and quarterly compounding rates. The yield on a 5 year bank CD is higher than the rate because the yield factors in compounding interest over the term of the certificate. Many financial institutions require a minimum deposit for 5 year CD accounts, some require no minimum deposit.
Best 5 Year CD Rates
| Bank Rank | Name of Bank | Investment Type | Term | Rate | Compounded | Min. Deposit |
|---|---|---|---|---|---|---|
| 1 | Melrose Credit Union | Bank CD | 5 yr | 2.90% | Daily | $5,000 |
| 2 | Bank of Internet | Bank CD | 5 yr | 2.49% | Daily | $1,000 |
| 3 | First International Bank of Indiana | Bank CD | 5 yr | 2.40% | Monthly | $1,000 |
| 4 | Aurora Bank | Bank CD | 5 yr | 2.36% | Daily | $1,000 |
| 5 | EverBank | Bank CD | 5 yr | 2.36% | Daily | $1,500 |
Comparing our best 5 year CD rates above, and also reviewing our local market CD Rates section is going to help you find the best 5 year CD for your needs.
Finding the Best 5 Year CD
When choosing a 5 year CD be sure to look beyond just the interest rate, and make your decision based on all the factors. It is important to keep in mind minimum deposit amounts, interest earning withdraw guidelines, whether the financial institution is FDIC or NCUA insured and the APY (Annual Percentage Yield).
With the 5 year CD you are looking at some very good rates. There is not that much flexibility with a 5 year CD because your money will be tied up for 60 months, but the returns will be high. If you are questioning whether you can have your money locked into a 60 month term it may be best to consider the 2 or 3 year CD options. Because the term is so long often times financial institutions will have low minimum deposit requirements.
