Personal Finance Banking Certificates of Deposit
Written by Sophia Acevedo; edited by Laura Grace Tarpley
Updated
- CDs with at least 5% interest
- FAQs
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- Various nationwide banks and credit unions have CDs offering above 5% APY.
- CD rates on terms of 24 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.
CD rates rose steadily in 2023 but will likely begin to drop in 2024 once the Federal Reserve decides to start cutting rates.
If you're interested in opening an account while CD rates are still high, you can still find some of the best CD rates paying above 5% APY. Find nationwide options below.
Certificates of deposit with at least 5% interest
The following list features financial institutions with CDs paying at least 5.60% APY. The credit unions included have membership eligibility requirements, but anyone can join regardless of where they live in the U.S.
This list specifically includes terms of 24 months or less 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 |
Newtek Bank | 6 months* | 5.35% |
| TotalDirectBank | 6 months* | 5.51% |
State Bank of Texas | 12 months | 5.40% |
CIBC Bank USA | 12 months* | 5.36% |
Rising Bank | 6 months* | 5.30% |
NASA Federal Credit Union | 9 months* | 5.35% |
Climate First Bank | 6 months | 5.34% |
First Internet Bank of Indiana | 12 months* | 5.26% |
CFG Bank | 12 months | 5.31% |
Credit Human Credit Union | 18 months* | 5.15% |
Dow Credit Union | 3 months* | 5.30% |
Popular Direct | 6 months* | 5.30% |
*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 0.23% to 1.80% APY, depending on the term.
What bank is paying 5% on CDs?
Numerous banks offer 5% APY on CDs, including but not limited to Newtek Bank and TotalDirectBank.
How much interest will $5,000 earn in a 5% in a 12-month CD?
If you deposit $5,000 into a CD paying 5% APY, you would earn about $250 in interest. Based on current CD rates, a $5,000 CD deposit could make around $25 to $275 in interest in one year.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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Top Offers From Our Partners
SoFi Checking and Savings Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured. There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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