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Best 5-year CD rates for June 2025

Written by
Karen Bennett
Edited by
Marc Wojno, MBA
Reviewed by
Allyson Johnson
Verified Badge IconExpert verified

Rates updated between June 3 and June 9

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A certificate of deposit is a financial product that allows you to stash away some cash and earn a fixed rate of interest for a set period of time. In exchange for handing over your money for a specified and longer term, you usually earn a higher interest rate. For example, a five-year CD can earn a higher (and guaranteed) rate than a typical savings account while still offering safety.

Current 5-year CD trends

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Bankrate Partner average
3.86% APY
National average
1.72% APY
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CD rates remain high, but are projected to move lower.
The Fed is predicted to continue cutting rates in 2025. Read more from Bankrate's experts in our CD rates forecast.
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Bankrate's picks for top 5-year CD rates

Note: Annual percentage yields (APYs) shown were updated between June 3 and June 9, 2025. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Popular Direct_logo

Popular Direct

Rating: 4 stars out of 5
4.0 Bankrate CD score

  • Annual percentage yield

    4.20%

  • Min. deposit to open

    $10,000

Why Popular Direct?

Popular Direct is an online bank and a subsidiary of Popular Inc., a more than 130-year-old financial services company. Popular Direct offers CDs in eight terms ranging from three months to five years. With a $10,000 minimum deposit to open, these CDs are geared toward serious savers. Popular Direct doesn’t offer specialty CDs, such as bump-up or no-penalty CDs. It does offer a savings account with a competitive rate.

Synchrony Bank_logo

Synchrony Bank

Rating: 4.5 stars out of 5
4.5 Bankrate CD score

  • Annual percentage yield

    4.15%

  • Min. deposit to open

    $0

Why Synchrony Bank?

Synchrony Bank offers competitive yields across nine CD terms ranging from three months to five years. It also offers an 11-month no-penalty CD (though it has a really low APY) and a two-year bump-up CD. In addition to CDs, the bank also offers a money market account with an above-average APY and a savings account with a competitive APY. Neither account has a minimum balance requirement.

FourLeaf Federal Credit Union_logo

FourLeaf Federal Credit Union

Rating: 4.1 stars out of 5
4.1 Bankrate CD score

  • Annual percentage yield

    4.00%

  • Min. deposit to open

    $50

Why FourLeaf Federal Credit Union?

Anyone can join FourLeaf Federal Credit Union, as long as you open a savings account and deposit at least $5. Once you're a member, you can open a CD, too. The CDs require a $50 minimum deposit and are available in 15 terms, including one bump-up CD. Across all terms, the five-year option currently earns one of the top rates. The credit union also offers a savings account and a checking account that bears interest when certain requirements are met.

Bread Savings_logo

Bread Savings

Rating: 3.8 stars out of 5
3.8 Bankrate CD score

  • Annual percentage yield

    4.00%

  • Min. deposit to open

    $1,500

Why Bread Savings?

Bread Financial is an online-only bank that offers high-yield savings products and nine CD terms, ranging from three months to five years. Each term earns a competitive yield, but you'll need at least $1,500 to open an account. Bread Savings is a product of Comenity Capital Bank, which has existed for more than 20 years.

First Internet Bank of Indiana_logo

First Internet Bank of Indiana

Rating: 4.6 stars out of 5
4.6 Bankrate CD score

  • Annual percentage yield

    3.97%

  • Min. deposit to open

    $1,000

Why First Internet Bank of Indiana?

First Internet Bank of Indiana is an FDIC-insured financial institution that operates entirely online. First Internet Bank offers eight terms of CDs, from three months to five years, that all have strong yields and can be opened with a minimum deposit of $1,000. But note that the early withdrawal penalty for the five-year CD is on the high side compared to some other banks.

First National Bank of America_logo

First National Bank of America

Rating: 4.6 stars out of 5
4.6 Bankrate CD score

  • Annual percentage yield

    3.96%

  • Min. deposit to open

    $1,000

Why First National Bank of America?

First National Bank of America maintains just three branches, all in Michigan, yet its CDs and savings account can be opened online. Its five-year CD earns a competitive yield, as do its 13 other CD terms, which range from three months to 10 years. The bank's savings account also earns a rate that's well above the national average. The savings account and the CDs all require a minimum deposit of $1,000.

M.Y. Safra Bank_logo

M.Y. Safra Bank

Rating: 4.9 stars out of 5
4.9 Bankrate CD score

  • Annual percentage yield

    3.91%

  • Min. deposit to open

    $500

Why M.Y. Safra Bank?

The online banking division of M.Y. Safra Bank, called MYSB Direct, offers customers nationwide access to nine traditional CDs and a no-penalty CD. All the CDs earn competitive rates, including the five-year option, and most require a minimum opening deposit of $500. Customers can also open an interest-bearing checking account and a money market account online.

Morgan Stanley Private Bank_logo

Morgan Stanley Private Bank

Rating: 4.3 stars out of 5
4.3 Bankrate CD score

  • Annual percentage yield

    3.90%

  • Min. deposit to open

    $0

Why Morgan Stanley Private Bank?

The five-year CD from Morgan Stanley Private Bank earns a high yield, as do its six other CD terms that range between six months and three years. No set minimum deposit amount is required. The bank also offers a high-yield savings account, an interest-bearing checking account and brokerage accounts, making it an option for those who prefer to have their banking and investing accounts in one place. The CDs and other deposit products, as well as brokerage accounts, are offered through E*TRADE, which was acquired by Morgan Stanley in 2020.

TAB Bank_logo

TAB Bank

Rating: 4.1 stars out of 5
4.1 Bankrate CD score

  • Annual percentage yield

    3.81%

  • Min. deposit to open

    $1,000

Why TAB Bank?

TAB (Transportation Alliance Bank) offers CDs in six terms, from 12 months to five years. All of TAB's CDs offer competitive yields, and you can open one with a $1,000 deposit. TAB also offers multiple checking accounts, including one that earns a competitive APY, a high-yield savings account and a money market account.

Sallie Mae Bank_logo

Sallie Mae Bank

Rating: 3.9 stars out of 5
3.9 Bankrate CD score

  • Annual percentage yield

    3.80%

  • Min. deposit to open

    $2,500

Why Sallie Mae Bank?

Sallie Mae Bank offers 11 terms of CDs, ranging from six months to five years, and many of them come with high yields. The bank also offers savings accounts, a money market account and private student loans.

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Recent news about CD rates

Yields on deposit products, including CDs, are indirectly affected by the Federal Reserve's federal funds rate. When the Fed raises that benchmark rate, banks and credit unions tend to hike their yields. As such, CD yields have been elevated ever since the Fed started hiking rates in 2022. But that's changing.

In September 2024, the Federal Reserve ended a 13-month streak of leaving the federal funds rate unchanged after hiking the benchmark rate to combat post-pandemic inflation. As inflation eased, coming closer to the Fed's preferred target, the U.S. central bank continued cutting rates last year in November and December. This caused deposit yields to drop, though they remained relatively high.

But with the economic uncertainty created by the Trump administration — especially with some expectations that tariffs could lead to increased inflation — experts anticipate no change in the federal funds rate in the next few months. 

As such, CD yields may remain elevated for a bit longer. So, if you've been waiting for the right time to open a CD, now may be the time before yields fall further. Five-year CDs in particular can guarantee a high rate for a long time.

How to find the best 5-year CD rates

Savers looking for the best CD rates probably want to venture online. Even if a bank is relatively small or not well-known, as long as it’s a member of the Federal Deposit Insurance Corporation (FDIC), you can rest easy knowing each depositor (that’s you) is protected up to at least $250,000 per insured bank, per ownership category if there’s a bank failure. You can find out if your bank is FDIC-insured by using the BankFind Suite tool.

Credit unions are insured by the National Credit Union Administration (NCUA). The NCUA also provides a standard insurance amount of up to $250,000 per share owner (that’s you!), per insured credit union and for each ownership category (account type, such as single versus joint accounts).

One thing to look for, though: ease of use. Banks that make it difficult or time-consuming to deposit and withdraw funds may waste so much of your time that the benefit of a few extra basis points of interest on your savings is lost. (A basis point is equal to 0.01 percentage point, so 1 percent has 100 basis points.)

Best 5-year CD rates at credit unions

Don’t limit yourself to banks when looking for the best yields on CDs. You can find some highly competitive APYs at credit unions, too. You just need to make sure that you qualify to join, since some credit unions limit membership to people who live in certain regions or work at certain companies. If you do qualify for membership, you could earn a top rate. Here are some credit unions that have high APYs on their 5-year CD and some information on membership eligibility:

  • America First Federal Credit Union: 4.25 percent APY for a 5-year CD. To join America First, you must live work, worship, volunteer or attend school in certain western states, or be a member of certain employers or affiliated associations, among other criteria.
  • SchoolsFirst Federal Credit Union: 4.25 percent APY for a 5-year CD. SchoolsFirst serves educational communities in California, so you're eligible to join if you are a current or retired school employee of an eligible school, an immediate family member of a SchoolsFirst member, an employee of certain educational companies or a college student enrolled in an eligible education program with a student teaching requirement.
  • Security Service Federal Credit Union: 3.90 percent APY for a 5-year CD. To join Security Service, you must live, work, worship, attend school, volunteer or have a business in Texas, Colorado or Utah. You can also join if you're a member of the military or a Department of Defense employee.
  • The Golden 1 Credit Union: 3.80 percent APY for a 5-year CD. To join Golden 1, you must live or work in California.

APYs are current as of May 23, 2025.

When should you get a 5-year CD?

For those with a longer financial horizon and no need to access funds at a moment’s notice, a five-year CD can be a great choice. Because they earn a guaranteed rate for the whole term, five-year CDs are suitable for those who want to grow some of their savings over a half-decade, without the volatility associated with stocks or mutual funds. 

CDs typically come with penalties for early withdrawal, so they’re best for those who are confident they won’t need to access their funds in the interim. If there’s a chance you’ll need the money for unexpected expenses or opportunities, it might be wise to explore more liquid, high-yielding savings accounts.

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Alternatively, you could invest some money in a five-year CD and some in shorter-term CDs to build a CD ladder, ensuring that a portion of your savings will be accessible in the shorter term. A CD ladder staggers maturities and APYs, giving you the opportunity to earn a higher yield and still have access to some cash at set intervals.

The ability to lock in a yield of 4 percent for the next five years is an attractive opportunity, as long as you don’t need the principal during that time. Having the protection of federal deposit insurance and an annual fixed return of 4 percent provides good portfolio diversification and can generate predictable income.
Bankrate logo Greg McBridge, CFA, Bankrate Chief Financial Analyst

What to consider when choosing a CD

Consider these things to help you choose the right CD:

  • Early withdrawal penalties: Know what penalties may be incurred should you withdraw your money before the CD matures.
  • Minimum required deposit: Many CDs require a minimum amount of money to open.
  • APY: Annual percentage yield is the yearly interest earned if you keep your money in the CD for the full term. Compare APYs, instead of interest rates, to make an apples-to-apples comparison of CDs.
  • Term: The length of time required to earn interest on your money. Generally, it’s a good idea to choose a CD with a shorter term than when you expect to need your money. For example, if you need access to the funds in about two years, an 18-month CD may be a good choice.
  • Insurance: Make sure the CD is offered by an FDIC-insured bank or at an NCUA credit union.

Pros and cons of a 5-year CD

Pros

  • Checkmark Icon

    Limited liquidity — CDs don’t provide immediate access to your funds (unlike savings accounts), which could benefit those who may be tempted to otherwise spend their money. A CD can help keep your savings intact. Just be sure you won’t need the money before the CD matures for such things as emergencies or living expenses. It’s also important to understand the early withdrawal penalty that you’d incur if you needed to withdraw your funds sooner.

  • Checkmark Icon

    Safety — CDs from FDIC-insured banks and NCUSIF-backed credit unions are backed by the full faith and credit of the U.S. government, up to $250,000 per depositor, per insured institution and per ownership category.

  • Checkmark Icon

    High returns — Banks sometimes provide a higher APY with a five-year CD than you could find in a traditional savings account or in a CD with a shorter maturity.

  • Checkmark Icon

    Wide selection — You can choose from thousands of banks and credit unions to find a CD with the interest rate, maturity date (term) and minimum deposit amount that fits your needs.

  • Checkmark Icon

    Fixed, predictable returns — Once you put your money in a CD, you’re guaranteed a set return at a specified date, which can help you plan your financial goals.

Cons

  • Limited liquidity — The inability to instantly access funds is a drawback for those who may need their money before the CD’s term is up. You’ll typically pay a penalty for making early withdrawals. If you think it’s likely you’ll need this money in less than five years, consider a shorter-term CD or a savings account.

  • Inflation risk — The money in your CD may lose its purchasing power over time if inflation overtakes your interest gains.

  • Low relative returns — Other investment options may offer a higher rate of return. But these investments generally involve higher risk, including the chance of losing the principal. If you leave your money in the CD for the full term at an FDIC-insured bank and are within FDIC guidelines, your fixed-rate CD will earn that yield. The same is true for NCUSIF-backed credit unions.

  • Reinvestment risk — When you park your money in a five-year CD, it’s a long wait before you can tap those funds. If interest rates rise in the meantime, you could miss out on investing in a higher-rate CD.

5-year CD FAQs

Meet the Bankrate Experts

Written by: Karen Bennett, Senior Consumer Banking Reporter

Karen is a senior consumer banking reporter with three decades of writing experience, including in the financial services industry. Topics she's covered include savings accounts, CDs, budgeting and emergency funds, as well as legislation and government regulation. In addition to Bankrate, her work has also appeared in USA Today, Illinois Legal Times and various newspapers in Chicago, Milwaukee and Washington, D.C. Karen is a member of the Society for Advancing Business Editing and Writing (SABEW) and has a master's degree in journalism from Columbia College Chicago.

Read more from Karen Bennett

Edited by: Marc Wojno, Senior Editor, Banking

I’ve been a personal finance writer and editor for more than two decades specializing in money management, deposit accounts, investing, fintech and cryptocurrency. Throughout the years of crunching numbers and words, I’ve been passionate about helping readers make informed decisions on managing their money with uniquely helpful advice. I have an MBA from George Washington University, and am an active member of both the National Press Club and SABEW, where I’ve volunteered as a judge for their respective journalism awards programs. Recently, I was elected Treasurer of the Society of Professional Journalists’ SDX Foundation (Washington, DC chapter), raising scholarship money for aspiring young journalists.

Read more from Marc Wojno

Reviewed by: Allyson Johnson

Allyson Johnson, based in San Francisco, is the head of investor relations at Gateway Partners, a $1.5 billion emerging markets investment manager. In her role, she leads marketing and fundraising, with a focus on the U.S. institutional landscape. She also is a former member of Bankrate's Financial Review Board. Allyson graduated from Duke University with a BA in Mathematics. She is a CAIA charter holder and has passed the CFA Level II examination.

Read more from Allyson Johnson

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best five-year CD rates, we regularly survey five-year CD offerings from the banks and credit unions that continually offer the most competitive rates.

The banks and credit unions on this page are selected based on their current APY for a five-year CD and their minimum deposit requirements. Only banks and credit unions with broadly available CDs made the list. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Clock and dollar bills representing a Certificate of Deposit, with the title Best CD Rates