5 year CD Rates

5 year CD Rates

(The rates provided in our database above are updated daily.)

A 5 year CD is typically the longest term maturity that banks and credit unions will offer. You’ll almost always incur a greater annual percentage yield with these products than you would with shorter maturities, however, the trade off is that you’ll need to keep your money locked up for the entire 60 month period.

The best time to take advantage of a 5 year CD is during the peak of an interest rate cycle, or just before rates begin to decline. For example, in 2008, interest rates on certificates of deposit (and especially 5 year CDs) were at all time highs. Some were pushing 6% plus. Those that had the foresight to invest in a 5 year CD prior to and immediately following the bank collapse of 2008 would then still be garnering those high annual yields today (and through 2013).

We wouldn’t recommend investing in a 5 year CD during a low interest rate period. The reason behind this is that you will be stuck with your CD when/if rates begin to rise and therefor may miss out on higher yields in the future. Almost all banks impose a penalty for early withdrawal so make sure you perform your due diligence before locking into a long term CD.

All of the 5 year CDs listed in our database above are federally insured by the FDIC up to $250,000.