The best 5-year CD rates of August 2026: Up to 4.35%

APYs listed in this article are current as of the time of publication. CNBC Select will update as changes are made public.

If you’re saving toward a long-term goal, like a down payment on a home, a five-year CD will deliver a predictable return while keeping your principal well protected.

CNBC Select compared CDs from more than 35 banks, credit unions and online institutions to find the best rates for five-year (60-month) terms. As of August 2026, the national average rate for a five-year CD is 1.73 percent APY, according to the FDIC. Our picks range from 4.35% at E*TRADE and Sallie Mae to 3.75% at First National Bank of America and Synchrony Bank.

In addition to yields, we considered deposit requirements, CD types, early withdrawal penalties, account availability, customer service and other factors. See our methodology for more on how we made our choices.

A CD, or certificate of deposit, is a savings account that earns a fixed rate of interest for a set term, usually between three months and five years. (At a credit union, the same product may be called a share certificate or term savings account.)

With a traditional CD, you deposit funds when you open the account and then leave them untouched until the term ends.

Taking money out before the CD matures means incurring an early withdrawal penalty. The penalty varies by bank and your CD’s term length, but it’s usually the interest you would have earned over a certain number of days or months. (Generally, the longer the CD term, the higher the withdrawal penalty.)

Once the CD matures, you get your money back, in addition to the interest earned. If you don’t withdraw the funds, the bank will often auto-renew at the rate offered at maturity.

One reason you might choose a CD over a high-yield savings account is that you lock in your rate the day you open the account and don’t have to worry about it dropping.

1. No-penalty CD: A no-penalty CD enables you to withdraw money before your CD reaches maturity without paying a penalty. In exchange, no-penalty CDs usually have lower interest rates.

2. Bump-up CD: A traditional CD locks your funds into a fixed rate until maturity. With a bump-up CD, if your bank raises interest rates, you can request the higher rate during your term. Most banks only allow you to opt into a rate increase once per term. Step-up CDs are similar, except that the rate is automatically raised to a higher yield at specific points in your term.

3. Add-on CD: With a traditional CD, you can only deposit a lump sum when opening your account. Add-on CDs allow you to make additional deposits throughout the term. Most banks restrict how many additional deposits you can make, based on the term.

4. Jumbo CD: Traditional CDs often have minimum deposits of $500 or $1,000, though some have no minimum at all. Jumbo CDs typically require a minimum deposit of $50,000 or $100,000. And while they historically offered higher interest rates, many banks now pay yields similar to—or even lower than—standard CDs.

5. Brokered CD: Brokered CDs are sold through investment firms and operate as securities. You can sell them on the secondary market before their maturity date, which makes them more liquid than traditional CDs. It also means you could lose money if you have to sell for less than your original investment.

6. IRA CD: A retirement savings account that holds one or more certificates of deposit, combining the safety of a CD with the tax advantages of an IRA. Because of its low risk, an IRA CD is preferred by savers near or in retirement looking for predictable returns without market volatility. However, early withdrawal could result in paying two penalties.

When choosing a CD, consider how long of a term you’re comfortable with. Six-month and 12-month CDs if you want to grow your money for a short-term goal, such as a vacation. A five-year CD may be better for saving up for a down payment on a home.

Once you know the term, there are several factors to consider:

• Annual percentage yield (APY)
• Minimum deposit requirement
• Early withdrawal penalty
• Availability of no-penalty, bump-up or other CD types
• Other banking products
• Online experience and customer support

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every CD review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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