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5-Year CD Rates
5-year CDs offer the longest common term, typically trading some liquidity for a rate locked in well into the future — a meaningful commitment that suits specific long-term savings goals.
Current 5-Year Rate Landscape
| Bank | 5-Year APY |
|---|---|
| Discover Bank | ~4.50% |
| Marcus by Goldman Sachs | ~4.50% |
| Synchrony Bank | ~4.40% |
Is a 5-Year CD Worth the Commitment?
5-year rates aren't always higher than shorter terms — compare actual current rates across terms before assuming length equals a better deal. A 5-year CD makes most sense if you're confident you won't need the funds and want to lock in a rate for the long term.
Reducing the Risk of a Long Commitment
Consider a CD ladder instead of committing everything to a single 5-year term — this gives you periodic access to funds while still capturing longer-term rates on a portion of your savings.
Common Mistakes
Locking a large sum into a 5-year CD without considering the significant early withdrawal penalty (often 180-365 days of interest) if your circumstances change.
Frequently Asked Questions
Not necessarily — the relationship between term length and rate depends on market conditions and rate expectations. Compare actual current rates across terms rather than assuming longer always pays more.
Typically 180-365 days of interest, among the largest penalties across CD terms — confirm the exact policy before committing a large sum to this length of term.