5-Year Certificate of Deposit
A long-duration fixed-rate deposit commitment. Historically pays a premium over shorter CDs, though in inverted-yield-curve environments this spread can narrow or reverse.
Rate Summary — as of
Typical APY range
4.00–4.80%
Typical minimum balance
$500
What Is a 5-Year Certificate of Deposit?
A long-duration fixed-rate deposit commitment. Historically pays a premium over shorter CDs, though in inverted-yield-curve environments this spread can narrow or reverse.
Key Features
- Locks in rate for 5 years
- Useful in falling-rate environments
- FDIC/NCUA insured
- Predictable long-term income
What to Watch Out For
- Early-withdrawal penalty is severe (often 150–365 days of interest)
- Inflation risk over 5 years
- Opportunity cost if rates rise
Who This Product Fits
College Saver
Saving for education costs on a 5–18 year horizon. Values predictability; considers CDs for fixed tranches alongside a 529, not as a replacement.
Retiree on Fixed Income
Drawing income from deposits. Prioritises rate predictability, CD ladders, and FDIC/NCUA coverage across multiple institutions.
High-Net-Worth Depositor
Managing cash positions exceeding $250,000. Requires strategies for FDIC coverage beyond the single-institution limit: CD ladders across banks, CDARS networks, and brokered CDs.
Compare by Bank Type
The same 5-Year CD product type varies significantly by institution. Select a bank category to see how rates, fees, and features differ:
Big-Four Banks
Chase, Bank of America, Wells Fargo, and Citibank. Unmatched branch network; rates typically 0.01–1.…
Regional Banks
Mid-size institutions (Regions, Huntington, Fifth Third, KeyBank). Often competitive CDs; savings ra…
Online-Only Banks
Ally, Marcus, Discover Bank, American Express Bank. Consistently lead rate tables by 1–3 percentage …
Credit Unions
Member-owned cooperatives insured by NCUA. Share rates often match or beat online banks; membership …
Fintech Neobanks
SoFi, Wealthfront Cash, Betterment Cash Reserve. Pass-through deposit models; rates competitive but …
Brokerage Banks
Fidelity, Charles Schwab, Vanguard banking arms. Sweep rates are often low on default; money market …
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