Written by Sophia Acevedo, CEPF; edited by Laura Grace Tarpley
2024-03-27T23:01:04Z
- 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 5.31% 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 |
9 months* | 5.50% | |
3 months* | 5.25% | |
| TotalDirectBank | 6 months* | 5.45% |
12 months* | 5.30% | |
12 months* | 5.40% | |
12 months* | 5.15% | |
12 months | 5.40% | |
13 months* | 5.36% | |
Western Alliance Bank, powered by Raisin | 3 months* | 5.31% |
12 months | 5.35% | |
12 months* | 5.31% |
*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 1.83% APY, depending on the term.
What bank is paying 5% on CDs?
Numerous banks offer 5% APY on CDs, including but not limited to Alliant Credit Union, and CIBC Bank USA.
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.
Sophia Acevedo, CEPF
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She edits and writes bank reviews, banking guides, and banking and savings articles for the Personal Finance Insider team. She is also a Certified Educator in Personal Finance (CEPF).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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