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• A few financial institutions have CDs offering 5% APY or higher.
• CD rates on terms of under 24 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 1.80% 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.

Featured Nationally Available Deposit Rates

These are some of the top savings and CD rates offered by national brands.

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 24 months because short-term CD rates are currently higher than long-term CD rates .

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 of 18 months 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

Can I easily find CDs offering 5% interest?

Yes, four financial institutions are currently offering CDs paying 5% APY or more. Some examples include Financial Partners Credit Union and California Coast Credit Union.

Are CDs with 5% interest safe?

CDs that are FDIC - or NCUA-insured are safe.

Do all 5% interest CDs have high minimum deposits?

Not all 5% interest CDs have high minimum deposits. You can find multiple 5% CDs with minimum opening deposits of $500 or $1,000.

Should I lock in a longer-term CD for a 5% rate, or wait?

The Federal Reserve cut interest rates for the first time in four years in September, and it cut rates again in November and December. It chose to keep rates steady in January. At the next Fed meeting , it's likely that rates will stay stable, but the Fed might cut rates again further down the line. 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.

Is it better to invest in a 5% CD or a high-yield savings account?

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.

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