Mon. Jul 8th, 2024

CDs offering 5% interest<!-- wp:html --><p class="headline-regular financial-disclaimer">Our experts answer readers' banking questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/personal-finance-editorial-standards#rating-banking-products" class="not-content-link" target="_blank" rel="noopener">here's how we assess banking products</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank" rel="noopener">our partners</a>; however, our opinions are our own. Terms apply to offers listed on this page.</p> <p>CD rates have steadily increased over the last few years, and 5% interest CDs are now common among nationwide banks.</p> <p class="copyright">PeopleImages/Getty Images</p> <p>Various nationwide banks and credit unions have CDs offering above 5% APY. <br /> CD rates on terms of 18 months or less are currently higher than most longer-term CD rates.<br /> Review the account disclosure before opening a CD to be aware of opening requirements and fees.</p> <p><a href="https://www.businessinsider.com/personal-finance/why-are-savings-interest-rates-going-up">Savings rates have gone up</a> over the last two years, and the <a href="https://www.businessinsider.com/personal-finance/who-has-the-best-cd-rates-right-now">best CD rates</a> readily offer 5% APY (Annual Percentage Yield) or more right now.</p> <p><strong>Featured Nationally Available CD Rates</strong></p> <p>These CDs all offer at least 5% APY on deposits.</p> <p>CIT Bank 6 Month Term CD - Product Name Only: CIT Bank 6 Month Term CD - APY APYPonce Bank 9 Month CD - Product Name Only: Ponce Bank 9 Month CD - APY APYWestern Alliance Bank 1 Year CD - Product Name Only: Western Alliance Bank 1 Year CD - APY APYSallie Mae 14 Month CD - Product Name Only: Sallie Mae 14 Month CD - APY APYDiscover 18 Month CD - Product Name Only: Discover 18 Month CD - APY APYFVCbank 12 Month No-Penalty CD - Product Name Only: FVCbank 12 Month No-Penalty CD - APY APY</p> <p>If you're interested in opening an account, here are 5% CDs available nationwide.</p> <h2><strong>Certificates of deposit with at least 5% interest</strong></h2> <p>The following list features financial institutions with CDs paying more than 5.50% APY. The credit unions included have membership eligibility requirements, but anyone can join regardless of where they live. </p> <p>This list specifically includes terms under 36 months because <a href="https://www.businessinsider.com/personal-finance/short-term-cd-rates">short-term CD rates are currently higher than long-term CD rates</a>. Also, keep in mind that many financial institutions have multiple terms that pay 5% APY or more. </p> <p>Institution</p> <p>Most Competitive CD Term </p> <p>Highest CD APY Available</p> <p><a href="https://www.businessinsider.com/personal-finance/credit-human-cd-bridge">Credit Human Federal Credit Union</a></p> <p>12 months</p> <p>Credit Human 12 Month Share Certificate - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/dow-credit-union-cd-bridge">Dow Credit Union</a></p> <p>13 months*</p> <p>5.76%</p> <p><a href="https://www.businessinsider.com/personal-finance/totaldirectbank-cd-bridge">TotalDirectBank</a></p> <p>6 months*</p> <p>TotalDirectBank 6 Month CD - APY</p> <p><strong>BluPeak Credit Union</strong></p> <p class="headline-regular">9 months*</p> <p class="headline-regular">5.75% </p> <p><a href="https://www.businessinsider.com/personal-finance/forbright-bank-review">Forbright Bank</a></p> <p>9 months*</p> <p>5.75%</p> <p><a href="https://www.businessinsider.com/personal-finance/popular-direct-review">Popular Direct</a></p> <p>12 months*</p> <p>Popular Direct 1 Year CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/newtek-bank-cd-bridge">Newtek Bank</a></p> <p>24 months*</p> <p>Newtek Bank 24 Month Variable Rate CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/lendingclub-bank-review">LendingClub</a></p> <p>12 months*</p> <p>LendingClub 1 Year CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/bmo-alto-savings-cd">BMO Alto</a></p> <p>12 months*</p> <p>BMO Alto 1 Year High Yield CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/citibank-review">Citi</a></p> <p>11 months</p> <p>5.25% to 5.65%</p> <p><a href="https://www.businessinsider.com/personal-finance/limelight-bank-cd-bridge">Limelight Bank</a></p> <p>12 months*</p> <p>Limelight Bank 1 Year Online CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/cibc-bank-usa-review">CIBC Bank USA</a></p> <p>12 months*</p> <p>CIBC Agility 1 Year CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/bread-savings-bank-review">Bread Savings High-Yield CD - Brand Name</a></p> <p>12 months*</p> <p>Bread Savings 1 Year High-Yield CD - APY</p> <p><strong>Western Alliance Bank, powered by <a href="https://www.businessinsider.com/personal-finance/raisin-review">Raisin</a></strong></p> <p>6 months*</p> <p>Western Alliance Bank 6 Month CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/valley-direct-cd-bridge">Valley Direct</a></p> <p>36 months*</p> <p>Valley Direct 3 Year Variable CD - APY variable</p> <p><a href="https://www.businessinsider.com/personal-finance/bask-bank-review">Bask Bank</a>12 months*Bask Bank 1 Year CD - APY</p> <p><a href="https://www.businessinsider.com/personal-finance/signature-federal-credit-union-review">Signature Federal Credit Union </a></p> <p>3 months*</p> <p>Signature Federal Credit Union 3 Month Certificate - APY</p> <p><a href="https://www.mysafra.com/" target="_blank" rel="noopener">MYSB Direct</a></p> <p>12 months*</p> <p>5.51% </p> <p><em>*These financial institutions also offer other CD terms paying above 5% APY.</em></p> <h3>What to look for in a 5% CD</h3> <p>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.</p> <p>At most banks, CDs may require a minimum opening deposit of $1,000 or more. Unless you get an <a href="https://www.businessinsider.com/personal-finance/can-you-add-money-to-cd">add-on CD</a>, you won't be able to deposit money after the opening deposit. </p> <p>CDs do not have any <a href="https://www.businessinsider.com/personal-finance/monthly-bank-maintenance-fee">monthly bank maintenance fees</a>, but they usually have <a href="https://www.businessinsider.com/personal-finance/cd-early-withdrawal-penalties">early withdrawal penalties</a> if you take out money before the term ends.</p> <p>CDs are a type of bank account, so up to $250,000 is secure per depositor at an <a href="https://www.businessinsider.com/personal-finance/fdic">FDIC</a>- or <a href="https://www.businessinsider.com/personal-finance/how-ncua-insurance-works-credit-union">NCUA-insured</a> financial institution. </p> <h2>5% interest CD FAQs</h2> <h3 class="faq-question">Is 5% for a CD good?</h3> <p class="faq-answer">Yes, 5% APY is a good CD rate. <a href="https://www.businessinsider.com/personal-finance/average-cd-rates">Average CD rates</a> only pay around 0.22% to 1.79% APY, depending on the term.</p> <h3 class="faq-question">What bank is paying 5% on CDs?</h3> <p class="faq-answer">Numerous banks offer 5% APY on CDs, including but not limited to Citi, BMO Alto, and CIBC Bank USA.</p> <h3 class="faq-question">How much interest will $5,000 earn in a 5% in a 1-year CD?</h3> <p class="faq-answer">If you deposit $5,000 into a 1-year CD paying 5% APY, you would earn about $250 in interest.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/personal-finance/5-percent-certificate-of-deposit-cd">Business Insider</a></div><!-- /wp:html -->

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

CD rates have steadily increased over the last few years, and 5% interest CDs are now common among nationwide banks.

Various nationwide banks and credit unions have CDs offering above 5% APY. 
CD rates on terms of 18 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.

Savings rates have gone up over the last two years, and the best CD rates readily offer 5% APY (Annual Percentage Yield) or more right now.

Featured Nationally Available CD Rates

These CDs all offer at least 5% APY on deposits.

CIT Bank 6 Month Term CD – Product Name Only: CIT Bank 6 Month Term CD – APY APYPonce Bank 9 Month CD – Product Name Only: Ponce Bank 9 Month CD – APY APYWestern Alliance Bank 1 Year CD – Product Name Only: Western Alliance Bank 1 Year CD – APY APYSallie Mae 14 Month CD – Product Name Only: Sallie Mae 14 Month CD – APY APYDiscover 18 Month CD – Product Name Only: Discover 18 Month CD – APY APYFVCbank 12 Month No-Penalty CD – Product Name Only: FVCbank 12 Month No-Penalty CD – APY APY

If you’re interested in opening an account, here are 5% CDs available nationwide.

Certificates of deposit with at least 5% interest

The following list features financial institutions with CDs paying more than 5.50% APY. The credit unions included have membership eligibility requirements, but anyone can join regardless of where they live. 

This list specifically includes terms under 36 months 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

Credit Human Federal Credit Union

12 months

Credit Human 12 Month Share Certificate – APY

Dow Credit Union

13 months*

5.76%

TotalDirectBank

6 months*

TotalDirectBank 6 Month CD – APY

BluPeak Credit Union

9 months*

5.75% 

Forbright Bank

9 months*

5.75%

Popular Direct

12 months*

Popular Direct 1 Year CD – APY

Newtek Bank

24 months*

Newtek Bank 24 Month Variable Rate CD – APY

LendingClub

12 months*

LendingClub 1 Year CD – APY

BMO Alto

12 months*

BMO Alto 1 Year High Yield CD – APY

Citi

11 months

5.25% to 5.65%

Limelight Bank

12 months*

Limelight Bank 1 Year Online CD – APY

CIBC Bank USA

12 months*

CIBC Agility 1 Year CD – APY

Bread Savings High-Yield CD – Brand Name

12 months*

Bread Savings 1 Year High-Yield CD – APY

Western Alliance Bank, powered by Raisin

6 months*

Western Alliance Bank 6 Month CD – APY

Valley Direct

36 months*

Valley Direct 3 Year Variable CD – APY variable

Bask Bank12 months*Bask Bank 1 Year CD – APY

Signature Federal Credit Union 

3 months*

Signature Federal Credit Union 3 Month Certificate – APY

MYSB Direct

12 months*

5.51% 

*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 0.22% to 1.79% APY, depending on the term.

What bank is paying 5% on CDs?

Numerous banks offer 5% APY on CDs, including but not limited to Citi, BMO Alto, and CIBC Bank USA.

How much interest will $5,000 earn in a 5% in a 1-year CD?

If you deposit $5,000 into a 1-year CD paying 5% APY, you would earn about $250 in interest.

Read the original article on Business Insider

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