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Best 5-Year CD Rates – 4.75% APY (May 2023)

This post will cover the best 5-year CD rates that we know about but I want to add a caveat – I don’t think a 5 year CD at these rates makes a whole lot of sense.

We are currently in a rising interest rate environment.

The Federal Reserve has been increasing interest rates for the last year and, as of this writing, are still expected to increase rates. This means you will be locking in a 60-month CD at a time when rates are going up – which is generally not a great idea.

Now, I will add a caveat to the caveat… sometimes we want certainty and not necessarily to maximize rates. If that’s your situation, you want the certainty of a rate for 5 years and are less concerned about whether you’re maximizing interest – we hope this will help solve that problem for you.

Table of Contents
  1. Barclays – 4.50% APY
  2. BMO Harris – 4.50% APY
  3. Quontic Bank – 4.30% APY
  4. Ally Bank – 4.25% APY
  5. Discover Bank – 4.10% APY

💡 If you’re looking for the highest absolute yield, current 5-year CDs yields are attractive but not as high as some shorter terms. With interest rates rising, but market sentiment is that they won’t be rising for long, banks are not eager to lock in high rates for five years. The best rates are in the 12-month to 24-month range or with a no-penalty CD as many banks are using that as a differentiator.

Barclays – 4.50% APY

Barclays is one of the oldest banks in the world, having been founded over three centuries ago, and they offer a 60-month CD that offers a yield of 4.50% APY. They have a pretty common variety of term lengths on their CDs, from 12-months up to five years (60-months).

  • Interest compounds daily
  • No monthly fees
  • No minimum balance

What’s really nice about Barclays is that they are like a brick and mortar bank in their age and size but they offer all the trappings of an online bank, including a savings account that yields 4.00% APY (as of 4/27/2023) on your entire balance.

👉 Learn about Barclays Certificates of Deposit

BMO Harris – 4.50% APY

BMO Harris has a 59-Month CD (almost 5 years) with a market leading interest rate of 4.50% APY. There is a $1,000 minimum deposit required for this and that rate is effective as of .

They have a lot of special weird CD terms – 13 months, 25 months, 35 months, 45 months, and 59 months – in addition to the standard terms. The 59-month is the CD with the highest rate (they have a 60-month but it’s a bad rate).

  • Interest compounds daily
  • No monthly fees
  • $1,000 minimum balance

BMO Harris also has a great new account promotion where you can get a $200 bonus when you open a BMO Harris Smart Advantage™ Account or BMO Harris Smart Money™ Account.

So you can open a new account, get the bonus, and then take advantage of the high interest of the 59-Month CD.

👉 Learn about BMO Harris

Quontic Bank – 4.30% APY

Quontic Bank is a relatively new online bank that has collected a series of awards and high ratings from experts because of their approach to banking. They are a digital bank and a CDFI (Community Development Financial Institution, a US Department of Treasury certification), which means they look to use private and public funds to help economically disadvantaged communities.

They offer a 60-month CD with a 4.30% APY, which is a great rate especially when you couple it with their savings account that offers 4.05% APY.

  • Interest compounds daily
  • No monthly fees
  • $500 minimum balance

👉 Learn about Quontic Bank CDs

Ally Bank – 4.25% APY

Ally Bank is my main bank and they offer a variety of certificates of deposit including a 60-month CD currently yielding 4.25% APY. What’s nice about Ally is that they have high interest rates across many of their deposit products and includes ATM reimbursement of up to $10 each statement cycle.

  • Interest compounds daily
  • No monthly fees
  • No minimum balance
  • Low than average early withdrawal penalty

Ally bank also offers no penalty CDs – their current offer is a 11-Month CD that yields 4.35% APY. It’s not the best one out there right now but a nice little benefit if you open an account there.

👉 Learn about Ally Bank

Discover Bank – 4.10% APY

Discover Bank has some very attractive CD rates right now, especially as you look towards the shorter terms, but their 6- month CD is offering a yield of 4.10% APY. They have a lot of CD terms so you can find one that fits your finances.

  • Interest compounds daily
  • No monthly fees
  • $2,500 minimum balance

Discover Bank also runs promotions on their online savings account so you’ll want to check those out too.

👉 Learn about Discover Bank CDs

The post Best 5-Year CD Rates – 4.75% APY (May 2023) appeared first on Best Wallet Hacks.



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