The best 5-year CD rates for December 2022

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 5-year CDs. 

The Fortune Recommends editorial team ranked more than 40 CDs with 5-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.)

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 Nov. 3, 2022, but are subject to change.

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

Key numbers 
Minimum opening deposit: $0
5-year APY: 4.10%
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 Bank is an online-only bank that offers checking and savings accounts, credit cards, home and auto financing and more. Its 5-year CD rate currently sits at 4.10%, which is one of the higher rates on our list. Ally Bank requires no minimum deposit, so even new savers can choose how much they feel comfortable setting aside, while still benefiting from Ally’s competitive interest rate. Interest on these CDs compounds daily, and customer service reps are available 24/7 via phone, chat, or email. 

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

Key numbers 
Minimum opening deposit: $0
5-year APY: 4.26%
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 Bank is an online-only bank that looks to provide low-cost products to consumers by skipping the traditional brick-and-mortar model. 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. 

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

Key numbers 
Minimum opening deposit: $500
5-year APY: 4.30%
Penalty: There is an early withdrawal penalty equal to 180 days’ interest. 

Why we picked it: CFG Bank is a Maryland-based bank that offers online accounts to customers across the U.S. Its five-year CD boasts the highest APY on our list at 4.30%. 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: This account does require a $500 minimum deposit, and 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. 

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

Key numbers 
Minimum opening deposit: $1,500
5-year APY: 4.25%
Penalty: For terms four years and up, the penalty is 365 days simple interest.

Why we picked it: Bread Savings is an online-only bank that offers CDs and high-yield savings accounts. Bread’s CD account had the highest minimum opening deposit on our list, so this account may not be for newbies who are still growing their savings. However, this account is tied with Capital One for the third-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. 

5. Prime Alliance Bank: For savers who don’t plan to make frequent customer service calls 

Key numbers 
Minimum opening deposit: $500
5-year APY: 4.00%
Penalty: This account is subject to an early withdrawal penalty of three months’ interest on the amount withdrawn. 

Why we picked it: Prime Alliance Bank, headquartered in Woods Cross, Utah, offers checking, savings, money market accounts, and more. Customers across the nation can do their banking online or via Prime Alliance’s mobile app. This CD boasts a 4.00% APY and requires a minimum deposit of $500. Interest compounds daily. For assistance, customers can reach a representative over the phone Monday through Friday, between 8:30 a.m. and 5:00 p.m. (MST) or via email. 

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

Key numbers 
Minimum opening deposit: $500
5-year APY: 3.95%
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 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. Quontic’s 5-year CD offers a 3.95% APY and requires a $500 minimum deposit. Interest on this CD compounds daily. Customer service representatives are available via email or telephone, Monday through Friday from 9:00 a.m. to 6:00 p.m. EST. 

7. TAB Bank: For savers who like to keep their checking and savings in one place 

Key numbers 
Minimum opening deposit: $1,000
5-year APY: 4.00%
Penalty: This account is subject to an early withdrawal penalty of 180 days’ interest on the amount withdrawn subject to penalty. 

Why we picked it: TAB Bank is a Utah-based, online-only bank that opened in 1998 and offers online and mobile banking. It offers a number of personal banking products including checking accounts, high-yield savings, money market accounts, and CDs. This CD does require a higher minimum deposit at $1,000, however the 4.00% APY may be worth it for some savers. Interest on these accounts compounds daily. Customer service representatives are available via phone, Monday through Friday, 6 a.m. until 7 p.m. MST and 9 a.m. until 3 p.m. MST on Saturdays.

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

Key numbers 
Minimum opening deposit: $1,000
5-year APY: 3.65%
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: 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. Its CD made our list thanks to its 3.65% 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.

9. Capital One: For savers who appreciate extended customer service hours

Key numbers 
Minimum opening deposit: $0
5-year APY: 4.25%
Penalty: For a CD with a term greater than 12 months, the penalty is six months of interest regardless of when you redeem the account prior to maturity.

Why we picked it: Headquartered in Virginia, Capital One is one of the largest banks in the U.S., with brick-and-mortar locations, a vast network of over 70,000 ATMs, and online and mobile banking platforms. Capital One’s CD scored a spot on our list thanks to its high APY, well over 4%, and zero opening deposit requirement.

A few drawbacks include a lower compounding frequency than some of the other accounts on our list (interest on CDs compounds monthly) and no email support. Capital One does offer chat and phone support from 8 a.m. to 8 p.m. EST, seven days a week.

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

Key numbers 
Minimum opening deposit: $0
5-year APY: 3.65%
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: [hotlink ignore=true]Barclays Bank is based in the U.K., but open to U.S. customers who want to open an online account. Its CD offers customers a 3.65% rate, which is on the lower end compared to other accounts on our list. However, the $0 minimum deposit 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. 

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 just raised the federal funds rate for the sixth time 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. 

Our methodology

The Fortune Recommends^TM 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.