The top 5-year CD rates for August 2024 (up to 4.75% APY)

The APYs listed in this article are accurate as of the time of publication. They may change as the Fed rate fluctuates. CNBC Select will update as new information becomes available.

Saving for a long-term goal, such as a down payment on a first home, can be achieved by locking in today's high rates with a five-year CD.

We have compared numerous accounts to identify the top five-year CDs that provide APYs significantly higher than the national average. All of our top picks are insured by either FDIC or NCUA. (For more details on our selection process, please refer to our methodology.)

Compare CD rates

Best for high APY

Best for long CD term options

Best for no minimum deposit

Best for a large deposit

Best from a credit union

BMO Alto

This five-year CD from BMO Alto provides one of the highest APYs at 4.75%, and there's no minimum deposit required. If you're looking to maximize your long-term savings over five years, this account is the best option.

CD terms offered

Six months, twelve months, twenty-four months, thirty-six months, forty-eight months, sixty months.

Monthly fee

None

Early withdrawal penalty fee

Withdrawing funds from a CD before its maturity date will result in an early withdrawal penalty. The penalty is determined based on the interest rate of the CD at the time of withdrawal. If the penalty amount exceeds the accrued and unpaid interest, a reduction of principal may be necessary to cover the penalty.

11 months or less: You'll be charged 90 days interest
12 months or more: You'll be charged 180 days interest

First National Bank of America

FNBA provides a competitive 4.50% APY on its five-year CD with a minimum deposit of $1,000. Additionally, FNBA stands out among banks by offering CD terms longer than five years.

CD terms offered

120 months is equivalent to 10 years.

Monthly fee

None

Early withdrawal penalty fee

Partial withdrawals are allowed by the FNBA, and the penalty charged is determined by the length of your CD. This penalty may result in a reduction of your principal balance.

1 to 11 months = 90 days of interest
12 to 23 months = 180 days of interest
24 to 47 months = 360 days of interest
48 to 59 months = 540 days of interest
60 month = 540 days of interest
72 month = 540 days of interest
84 month = 540 days of interest
96 month = 720 days of interest
108 month = 720 days of interest
120 month = 720 days of interest

Early withdrawal penalties are the same for online and in-branch CDs.

Synchrony Bank

Synchrony Bank provides a competitive 4.00% APY on its five-year CD with no minimum deposit, making it accessible to anyone looking to save for a long-term goal.

CD terms offered

Sixteen months, twenty-four months, thirty-six months, forty-eight months, sixty months.

Monthly fee

None

Early withdrawal penalty fee

If you withdraw funds from the principal of a CD before its maturity date, you may be subject to an early withdrawal penalty. The penalty applies to the amount of principal withdrawn, and there is no penalty on interest. For a No-Penalty CD, early withdrawals are not allowed within the first six days after account funding. After that, only the entire balance can be withdrawn.

Popular Direct

If you have a substantial amount of cash and want to secure today's high rates for the next five years, Popular Direct's five-year CD is an excellent option. With a minimum deposit of $10,000, you can earn a competitive 4.30% APY. Over the course of five years, a $10,000 balance would generate $2,343.02 in interest earnings alone.

CD terms offered

Six, twelve, twenty-four, thirty-six, forty-eight, sixty months.

Monthly fee

None

Early withdrawal penalty fee

For terms less than 91 days: The fee is 89 days simple interest
For periods between 91 days and 12 months: The fee is calculated using simple interest.
For terms between 12 and 36 months, the fee is calculated as 270 days' worth of simple interest.
For terms between 36 and 60 months: The fee is calculated as simple interest for 365 days.
For terms equal to or greater than 60 months, the fee is calculated as 730 days of simple interest.

Grow Financial Federal Credit Union CDs

If you're looking for a credit union to bank with for your long-term savings goals, Grow Financial Federal Credit Union is a great option. They offer a five-year CD at 4.75% APY, which is the highest rate we found from a credit union. The minimum deposit is only $500, and if you have a $100,000-plus deposit, you can earn a 4.86% APY on the five-year CD. Membership is available to anyone by opening a Grow Financial Federal Credit Union Basic Savings Account.

CD terms offered

12 to 17 months, 18 to 23 months, 24 to 29 months, 30 to 35 months, 36 to 47 months, 48 to 59 months, 60 months

Monthly fee

None

Early withdrawal penalty fee

A penalty will be imposed for early withdrawals

What's a CD?

A CD, or certificate of deposit, is a type of deposit account that earns interest. It offers a fixed rate of interest for a set period, ranging from six months to five years. However, you cannot withdraw your funds during the entire term length without paying an early withdrawal penalty fee and potentially losing out on accrued interest.

How CDs work

Opening a CD account involves depositing money and earning a fixed interest rate for a specified period, with term lengths usually ranging from three months to five years.

A CD and a savings account are similar, but the traditional CD model has some key differences.

At the start of the CD term, you can only deposit money once. Additional contributions are not allowed during the term. There is often a minimum deposit requirement, typically $500 or more.
Withdrawing your money before the end of your CD term can result in an early withdrawal penalty, which may be calculated based on the interest earned or the interest you would have earned over a specific period. The penalty fees can vary depending on your bank and the length of your CD term, but generally, longer CDs result in more costly penalties.

When the CD term ends, savers can receive their initial investment plus the interest earned, or they can transfer the funds to a new CD without any action required. CDs automatically renew at the interest rate offered at maturity unless specified otherwise.

An advantage of choosing a CD over a high-yield savings account is that CDs offer a fixed APY, which means you can secure the rate the day you open the account. This can be beneficial if you open an account during a time when interest rates are high. However, if interest rates decrease after you open the account, a CD may not be as advantageous.

CDs are typically not subject to monthly fees and are federally insured, making them a safe savings option.

How to choose a CD

When selecting a CD, prioritize the length of time you want to keep your money tied up. Choose a CD based on that time frame and the rate will follow. For instance, if you are saving for a down payment on a home in a few years, opt for a longer-term CD such as a three- or five-year option and then compare rates from banks for those specific CD terms. Shorter CD terms, such as three- to six-month CDs, are suitable for beginners looking to save (and grow) their money for a short-term goal, such as a vacation.

How to compare CDs

To accurately compare CDs, ensure that you are examining CDs with the same term across various banks. This way, you are comparing "apples-to-apples." After determining the desired CD term, compare the interest rates, minimum deposit requirements, and any associated fees, such as early withdrawal penalties.

Pros and cons of CDs

The advantages and disadvantages of CDs are similar, and your perception of them depends on various factors. Our opinions are presented below.

Pros of CDs

Fixed interest rates (a good thing when rates are high)
You cannot access CD funds until the maturity date, which helps prevent impulsive spending.
Different CD types offer various options, including bump-up CDs, no-penalty CDs, add-on CDs, jumbo CDs, and IRA CDs.

Cons of CDs

Low fixed interest rates can be detrimental if they occur during the duration of a CD term.
If you need the money from CD funds, it's a bad thing because you can't touch them until the term is up.
Early withdrawal penalty fees may apply
It is generally not possible to make additional deposits into a CD after the initial deposit has been made at the start of the term.
Usually a minimum deposit requirement, typically $500 and up

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to managing their finances. Each CD review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of savings and banking products. At CNBC Select, we maintain the highest journalistic standards and ethics, and we earn a commission from affiliate partners on many offers and links. However, our content creation process is entirely independent of our commercial team and any external third parties. To learn more about our methodology for selecting the best five-year CDs, please refer to our website.

Our methodology

Online banks and credit unions offer higher APYs than most national brick-and-mortar banks.

We ranked our top five-year CDs based on their APYs, minimum deposit requirements, penalties for early withdrawals, ease of use, and industry rankings. Our top picks were ranked according to their high APYs, long CD term options, no minimum deposit, large deposit, and credit union.

All CDs on this list are FDIC- or NCUA-insured up to $250,000 per person. The rates and fee structures advertised by banks for their CD accounts are not guaranteed and may change without notice. They often fluctuate based on the Fed rate. When you open a CD account, you are typically locked into the APY offered at account opening for the entire term length.

The amount of money you earn from a CD depends on several factors, including the term length, the initial deposit, the annual percentage rate (APY) offered when you opened the account, and any associated fees. Typically, a larger deposit and a higher interest rate will result in higher earnings. However, if you withdraw your funds early, you may be subject to penalty fees that reduce your principal balance and earnings.

Most banks and institutions mandate a deposit of new funds when opening a CD account for the first time, preventing the transfer of existing funds from an account at that bank.

Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.