Personal Finance Banking Certificates of Deposit
Written by Sophia Acevedo; edited by Laura Grace Tarpley
Updated
- CDs with at least 5% interest
- FAQs
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- Various nationwide banks and credit unions have CDs offering above 5% APY.
- CD rates on terms of 24 months or less 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.
CD rates rose steadily in 2023 but will likely begin to drop in 2024 once the Federal Reserve decides to start cutting rates.
If you're interested in opening an account while CD rates are still high, you can still find some of the best CD rates paying above 5% APY. Find nationwide options below.
Certificates of deposit with at least 5% interest
The following list features financial institutions with CDs paying at least 5.26% APY. The credit unions included have membership eligibility requirements, but anyone can join regardless of where they live in the U.S.
This list specifically includes terms of 24 months or less because short-term CD rates are currently higher than long-term CD rates. Also, keep in mind that many financial institutions have multiple terms that pay 5% APY or more.
Institution | Most Competitive CD Term | Highest CD APY Available |
| TotalDirectBank | 6 months* | 5.51% |
EagleBank | 12 months* | 5.44% |
USALLIANCE Federal Credit Union | 12 months* | 5.40% |
State Bank of Texas | 12 months | 5.40% |
CFG Bank | 12 months* | 5.36% |
Bask Bank | 6 months* | 5.35% |
Newtek Bank | 6 months* | 5.35% |
Popular Direct | 6 months* | 5.35% |
Banc of California, powered by Raisin | 3 months* | 5.34% |
Climate First Bank | 6 months* | 5.34% |
Forbright Bank | 9 months* | 5.30% |
Dow Credit Union | 3 months* | 5.30% |
First Internet Bank of Indiana | 12 months* | 5.26% |
*These financial institutions also offer other CD terms paying above 5% APY.
What to look for in a 5% CD
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 the opening deposit.
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.
CDs are a type of bank account, so up to $250,000 is secure per depositor at an FDIC- or NCUA-insured financial institution.
5% interest CD FAQs
Is 5% for a CD good?
Yes, 5% APY is a good CD rate. Average CD rates only pay around 0.23% to 1.86% APY, depending on the term.
What bank is paying 5% on CDs?
Numerous banks offer 5% APY on CDs, including but not limited to Newtek Bank and TotalDirectBank.
How much interest will $5,000 earn in a 5% in a 12-month CD?
If you deposit $5,000 into a CD paying 5% APY, you would earn about $250 in interest. Based on current CD rates, a $5,000 CD deposit could make around $25 to $275 in interest in one year.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
Top Offers From Our Partners
SoFi Checking and Savings Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured. There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).
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.
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