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- Various nationwide banks and credit unions have CDs offering 5% APY or higher.
- CD rates on terms of under 12 months are currently higher than most longer-term CD rates.
- Review the account disclosure before opening a CD to be aware of opening requirements and fees.
Opening a certificate of deposit (CD) can be a solid way to lock in predictable growth on your savings.
Currently, the highest average CD rate is 1.84% APY for a 12-month CD, according to the Federal Deposit Insurance Corporation (FDIC), but many banks and credit unions offer CDs that pay substantially more.
Some of the best CD rates still pay 5% APY or more. Find out where to find CD offering 5% interest.
Certificates of deposit with at least 5% interest
The following list features both local and national financial institutions with CDs paying at least 5.00% APY. You'll need to meet membership eligibility requirements to join the credit unions listed, and some banks might not offer accounts to people outside of specific areas.
This list specifically includes terms under 12 months because short-term CD rates are currently higher than long-term CD rates. Also, keep in mind that some financial institutions have multiple terms that pay 5% APY or more.
| Institution | Most Competitive CD Term | Highest CD APY Available | Minimum Opening Account Balance | Area of Operation |
| California Coast Credit Union | 5 months | 9.50% | $500 | Parts of California |
| Financial Partners Credit Union | 8 months | 6.00% | $1,000 | Parts of California |
| Planters Bank Online | 4 months | 5.13% | $2,500 | Kentucky and Tennessee |
| First Federal Savings Bank of Kentucky | 7 months | 5.11% | $500 | Kentucky |
| Ocean Bank | 3 months* | 5.10% | $2,500 | Florida |
| Fairmont Federal Credit Union | 1 year | 5.00% to 5.25% | $100,000 | Parts of West Virginia |
| Poppy Bank | 6 months | 5.00% | $1,000 | California |
*These financial institutions also offer other 5% APY CD terms.
Where to find the best 5% CD rates
The best CD rates are often found at online banks and credit unions. Compare CDs with the same term lengths to find the best rate, but be sure to factor in any potential early withdrawal penalties as well.
When you're looking at CDs at different financial institutions, make sure to read through the account disclosures to understand the account's opening requirements and limitations.
At most banks, CDs may require a minimum opening deposit of $1,000 or more. Unless you get an add-on CD, you won't be able to deposit money after account opening. Make sure you're able to part ways with the money you're investing in a CD for the specified timeframe. A high APY won't have much of an impact on your savings growth if you have to make an early withdrawal.
CDs do not have any monthly bank maintenance fees, but they usually have early withdrawal penalties if you take out money before the term ends.
Maximizing your returns in a 5% CD landscape
Short-term CDs — or those with a maturity date in one year or less — are earning slightly better interest rates than long-term CDs right now.
In general, banks are currently paying lower APYs on longer-term CDs because the Federal Reserve is expected to cut rates in the near future. You may have to open a short-term CD to get the best rates, and then reevaluate your strategy when the CD matures.
If rates are still higher on CDs than high-yield savings accounts, for instance, you can open another short-term CD. Or you may decide to move your money into the stock market for a potentially higher return, depending on your goals.
5% interest CD FAQs
Yes, a couple of online banks and credit unions are currently offering CDs paying 5% APY or more for a term under 18 months. Some examples include Allegacy Federal Credit Union.
CDs that are FDIC- or NCUA-insured are safe.
Not all 5% interest CDs have high minimum deposits. You can find multiple 5% CDs with minimum opening deposits of $500 or $1,000.
The Federal Reserve cut interest rates for the first time in four years in September, and it cut rates again in November. At the next Fed meeting, it's likely that another rate cut may occur. It may be a good time to lock in a relatively high interest rate with a CD before rates decline and these competitive rates are gone.
You'll earn more interest over time in a CD than in a high-yield savings account, but you won't be able to access your money without paying a penalty. Use a high-yield savings account if you need easy access to your funds.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
*Earn 4.75% APY when you deposit at least $250 per month, earn 3.75% standard APY if minimum isn't met.
**Accounts with $250,000 or less will earn 4.35% APY, accounts with over $250,000 will earn 4.65% APY . Rate are determined by balance tiers and amount deposited.
***SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
