22 best 5-year CDs for January 2024

Over the past couple of years, the borrowing landscape has undergone significant shifts due to the Federal Reserve's series of rate hikes. With the aim of curbing inflation, the Fed's adjustments to its benchmark rate had a notable impact on interest rates across various borrowing products. This shift created a less favorable environment for borrowers, leading to a considerable increase in the cost of loan products compared to 2020 and 2021.

Amidst the challenges faced by borrowers, though, there has been a silver lining for savers. The Fed's rate hikes have proven to be a boon for those looking to maximize their interest earnings. The upward rate adjustments have prompted banks and financial institutions to raise the annual percentage yields (APYs) on high-yield savings accounts and certificates of deposit (CDs). Consequently, it is now common to find CDs and high-yield savings accounts with APYs that far exceed the current 3.2% inflation rate.

That means it's an opportune time to consider opening such accounts. But while high-yield savings accounts offer attractive rates, it's important to note that these rates are variable, meaning they can drop or increase if there's a change to the overall rate environment. On the other hand, CDs provide a stable option with fixed rates. And, opting for a longer-term CD allows savers to lock in a rate, ensuring they earn the same interest throughout the entire CD term. This stability becomes a significant advantage for savers, making it worthwhile to explore longer-term options — like 5-year CDs in particular.

Learn how today's best CDs can benefit your finances here.

22 best 5-year CDs for January 2024

If you want to earn the highest rate possible on your money, the following 5-year CDs may be worth considering: 

• First Harvest Credit Union — 4.89% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is six months of interest
• U.S. Senate Federal Credit Union — 4.86% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 12 months of interest
• First National Bank of America – 4.65% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 540 days of interest
• BMO Alto — 4.60% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 180 days of interest
• SchoolsFirst Federal Credit Union — 4.60% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 180 days of dividends; account balances of between $20,000 and $100,000 come with APYs between 4.65% and 4.75%
• First Internet Bank of Indiana — 4.59% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 365 days of interest
• Lafayette Federal Credit Union — 4.53% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 20 months of interest
• MYSB Direct — 4.51% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 180 days of interest
• Pima Federal Credit Union — 4.50% APY: This CD has a $250 minimum opening deposit requirement; the early withdrawal fee is 50% of the dividends that would have been earned during the remaining CD term
• Seattle Bank — 4.50% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal penalty is 180 days of interest
• Popular Direct — 4.50% APY: This CD has a $10,000 minimum opening deposit requirement; the early withdrawal fee is 730 days of simple interest
• Colorado Federal Savings Bank — 4.45% APY: This CD has a $5,000 minimum opening deposit requirement; the early withdrawal penalty is six months of interest
• Alliant Credit Union — 4.35% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal penalty is the amount of interest earned
• Department of Commerce Federal Credit Union — 4.34% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 180 days
• Bread Savings — 4.25% APY: This CD has a $1,500 minimum opening deposit requirement; the early withdrawal fee is 365 days of simple interest
• Farmers Insurance Federal Credit Union — 4.25% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is a minimum of six months of interest
• Barclays Bank — 4.15% APY: This CD has a $0 minimum opening deposit requirement; the early withdrawal fee is 180 days of simple interest
• KS State Bank — 4.10% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 18 months of interest
• The Federal Savings Bank — 4.07% APY: This CD has a $5,000 minimum opening deposit requirement; the early withdrawal fee is 365 days of interest
• Credit Human — 4.00%: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 365 days of interest
• Workers Credit Union — 4.00% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 50% of the interest that would have been earned
• American 1 Credit Union – 3.75% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 180 days of interest

Find out how today's top CD rates could help you meet your savings goals.

The bottom line

There are plenty of good 5-year CD options to consider right now, no matter what type of saver you are — or how much money you have on hand to deposit. And, in many cases, the rates on these CDs rival what you can get with a high-yield savings account, but CD rates are fixed, so you won't have to worry about how future rate fluctuations impact your earning potential. Before you open one, though, just make sure to do a little research to find one that fits both your financial picture and your money goals.