17 top 5-year CDs for December 2023

Over the last 18 months, the Federal Reserve's rate hikes have been a pretty big hit to borrowers. As the Fed hiked its benchmark rate in a bid to temper inflation, the interest rates on borrowing products — from mortgages to credit cards — skyrocketed in tandem. This caused a less-than-friendly borrowing environment, as it now costs a lot more to take out a loan than it did just a couple of years ago.

But it's not all bad news. If you're a saver, the Fed's rate hikes have been a big boost to what you can earn in interest on your money. That's because, as the Fed hiked rates, banks and financial institutions also increased the annual percentage yields (APYs) you can get on both high-yield savings accounts and certificates of deposit (CDs) — and rates on both types of accounts can now easily surpass 4.5%, depending on the bank or credit union.

That alone makes it a smart time to open one of these accounts. But while high-yield savings accounts offer great rates today, those rates are also variable. CDs, on the other hand, come with fixed rates, so if you lock in a rate on a longer-term CD right now, you're guaranteed to earn that same rate for the entire CD term. That's a pretty big benefit to savers — who may want to look closely at the following 5-year CDs in particular. 

Learn more about the CD rates you could get today.

17 top 5-year CDs for December 2023

You have lots of 5-year CDs to choose from right now, but if you're trying to snag the highest rate possible, these CDs may be worth considering: 

• Workers Credit Union — 5.25% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 50% of the interest that would have been earned
• The Federal Savings Bank — 5.12% APY: This CD has a $5,000 minimum opening deposit requirement; the early withdrawal fee is 365 days of interest
• Farmers Insurance Federal Credit Union — 5.00% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is a minimum of six months of interest
• BMO Alto — 4.90% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 180 days of interest
• 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
• Southeast Bank — 4.80% APY: This CD has a $1,000 minimum opening deposit requirement; a penalty is charged for early withdrawal
• American 1 Credit Union – 4.75% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal fee is 180 days of interest
• First National Bank of America – 4.75% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 540 days of interest
• KS State Bank — 4.75% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal fee is 18 months of interest
• Popular Direct — 4.70% APY: This CD has a $10,000 minimum opening deposit requirement; the early withdrawal fee is 730 days of simple interest
• MYSB Direct — 4.70% APY: This CD has a $500 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
• 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
• Barclays Bank — 4.50% APY: This CD has a $0 minimum opening deposit requirement; the early withdrawal fee is 180 days of simple interest
• Bread Savings — 4.50% APY: This CD has a $1,500 minimum opening deposit requirement; the early withdrawal fee is 365 days of simple 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

Find out how a CD could help you meet your savings goals.

The bottom line

There are lots of good options to choose from right now when it comes to CDs and 5-year CDs are no exception. While shorter-term CDs currently offer some of the highest rates available, locking in today's rates on a 5-year CD means that you'll be earning that same rate for the next 60 months. That insulates you from any interest rate drops that could occur during that time, so if you're considering a 5-year CD, now may be the time to make your move.