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Best 5-Year CD Rates August 2018

July 24, 2018
Banking, CDs
best-5-year-cd-rates
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We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.
Best 5-year CD interest rates

Connexus Credit Union

Overall bank rating:

3.25% APY
$5,000 minimum deposit
Citizens Access

at Citizens Access,

Member, FDIC

Citizens Access Bank

Overall bank rating:

3.10% APY
$5,000 minimum deposit
Barclays

at Barclays,

Member, FDIC

Barclays

Overall bank rating:

3.00% APY
No minimum deposit
Goldman Sachs Bank USA

at Goldman Sachs Bank USA,

Member, FDIC

Marcus by Goldman Sachs

Overall bank rating:

3.00% APY
$500 minimum deposit

TIAA Bank

Overall bank rating:

3.05% APY
$5,000 minimum deposit

Capital One 360

Overall bank rating:

3.00% APY
No minimum deposit
Synchrony Bank

at Synchrony Bank,

Member, FDIC

Synchrony Bank

Overall bank rating:

3.00% APY
$2,000 minimum deposit

 

» Want to see more options? Check out our list of the best CD rates overall

Are CDs worth it right now?

In an environment with climbing interest rates, you might question putting your money in a long-term CD. But getting a CD can still make sense if you’re trying to spread out your investments, guarantee yourself a risk-free return, or want to ensure you won’t spend a sum of your savings for a few years.

» Want to know more? Read our full article on whether CDs are worth it

How do CD rates work?

CD rates are quoted as an annual percentage yield, or APY, which is how much the account earns in one year including compound interest. Banks generally compound interest monthly or daily.

» See what CDs can earn with our CD calculator

When should you get a CD?

You should get a CD only if you know you won’t need those funds during its term. Pulling money out of a CD before its expiration date will likely result in an early withdrawal fee, which is typically a percentage of the interest earned.

What’s better: CDs or high-yield savings accounts?

It depends on what’s more important to you, rates or access to your money. The best CD rates tend to be higher than the best savings account rates, but you sacrifice access to money in CDs. If that doesn’t work for you, check out our list of best online savings accounts.

What’s better: CDs or investment accounts?

It depends on the level of risk you want to take. Investment, or brokerage, accounts can have higher returns than CDs, but CDs guarantee returns. They’re typically federally insured for up to $250,000 and offer fixed interest rates. Brokerage accounts can be riskier, since you aren’t protected against losses.

Best 5-year CD rates, August 2018

BankAPYMinimum deposit
Connexus Credit Union3.25%$5,000
Citizens Access Bank3.10%$5,000
Barclays3.00%No minimum deposit
Marcus by Goldman Sachs3.00%$500
TIAA Bank2.90%$5,000
Capital One 3603.00%No minimum deposit
Synchrony Bank2.85%$2,000

METHODOLOGY

We featured easy-to-join financial institutions that we’ve reviewed with the highest rates currently listed in NerdWallet’s CD rates tool for 5-year CDs. For the ZIP code and minimum deposit requirement, we used 94103 and $5,000, respectively. We also included select, standout rates from other trusted online financial institutions that we have reviewed. Higher rates might be available elsewhere.

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