When you buy something using links found on our site, we may earn a small affiliate commission. This content is reviewed & supervised by The Los Angeles Times Commerce Team.

5% CD Rates: How To Get Them

  • 5% CD rates are well above the national average rate which ranges from 0.25-1.98 depending on the term.
  • Many banks offer certificates of deposit that pay 5% APY or more, these high-yield CDs are usually available through online banks.
  • The best CD rates currently tend to be for short-term CDs — those with terms of 12 months or less.
  • Many CDs require a minimum deposit of $500 or more, but there are some options with opening deposits of $1 or less.

A 5% CD can be a good savings option if you want a low-risk account that returns a specified rate. We take a look at some of the banks offering these competitive CD rates, explore the potential earnings and offer some alternative savings options to help you make an informed decision about your investment.

It also answers questions such as:

  • How much can you save with a 5% CD?
  • What are some alternatives to a 5% CD?
  • Is a 5% CD worth it?

Our top picks for CD rates

Can you get 5% on a CD?

Yes, you can get 5% CD rates and many financial institutions offer them. However, they may require deposit and account balance minimums, and if you can’t deposit enough, you may not be able to access the advertised high APY earnings.

Currently, the best CD rates tend to be on shorter-term CDs — you’re more likely to find 5% CD rates with certificates of deposit of 12 months or less. 

If you are looking at CDs with a credit union, you may need to meet other eligibility requirements, such as being a member of the credit union. 

Pros and cons of a 5% CD

  • 5% or more is much higher than the average CD or savings interest rate
  • Certificates of deposit are generally FDIC-insured and are considered low-risk investments
  • You are guaranteed to earn the advertised rate if you meet the minimum balance and term requirements
  • You can usually choose from a variety of terms to meet your savings needs
  • You typically can’t access the money in your CD during the term without paying penalties or losing your high APY
  • Interest earnings on higher-risk investment options can be much more lucrative
  • If inflation rates are higher than your APY, your real return isn’t as high as it might seem

Our top picks of 5% CDs compared 

Bank CD term APY Minimum deposit
Gainbridge 3-10 years 6.15% $1,000
Marcus 6 months 5.10% $500
Sallie Mae 14 months 5.05% $1
Bask Bank 3-18 months 5.35% $1,000
Quontic Bank 6 months 5.05% $500
Capital One 360 12 months 5% None
Synchrony 9 months 5.10% None
Western Alliance 3 months 5.21% $1

*Rates shown are the highest APY available and may vary for each term. Figures are correct as of June 2024.

Which banks offer 5% CDs?


Why we like it

Gainbridge offers an annuity savings product that operates somewhat like a CD. You can earn 6.15% APY with the FastBreak Annuity product on terms of three to 10 years. However, unlike with a traditional CD, you can withdraw up to 10% of the value of your account each year without any penalties or giving up your high-yield APY. 

An overview

Terms APY Minimum deposit
3-10 years 6.15% $1,000

*Figures are correct as of June 2024.


Why we like it

Marcus provides a high-yield CD option that’s fairly accessible. You can open your account in minutes and only need $500 as an initial deposit. 

You can also manage your account online and set instructions for handling your CD maturation, making it convenient to roll your funds into another CD if desired. Marcus also offers a 24/7 contact center, which can be helpful if you need assistance in managing your account. 

An overview

Term APY Minimum deposit
6 months 5.10% $500

*Figures are correct as of June 2024.

Sallie Mae

Why we like it

Available through Raisin, the Sallie Mae 14-month CD has a minimum opening deposit of $1 and you won’t pay any monthly maintenance fees. You can choose terms ranging from 10 months to terms as high as 60 months. 

If you’re not sure what to do with your funds when your CD matures, you can select an automatic renewal option to ensure your CD rolls right into a new investment. 

An overview

Term APY Minimum deposit
14 months 5.05% $1

*Figures are correct as of June 2024.


Bask Bank

Why we like it

It only takes about 15 minutes to open a certificate of deposit account with Bask Bank, and you can choose from numerous term options that offer an APY of 5% or more. Currently, the three-month and six-month CDs offer an APY of 5.35%, and the 18-month term has an APY of 5%.

An overview

Term APY Minimum deposit
3-6 months 5.35% $1,000

*Figures are correct as of June 2024.

Quontic Bank

Why we like it

You only need $500 to open a CD with Quontic Bank, and the six-month term offers an APY of 5.05%. You also won’t pay a monthly fee for this CD. Currently, you can choose from a variety of longer-term CDs with APYs above 4%.

An overview

Term APY Minimum deposit
6 months 5.05% $500

*Figures are correct as of June 2024.


Capital One 360

Why we like it

There’s no minimum deposit amount to open this Capital One CD, making it especially accessible to those beginning their long-term savings journey. You can also get interest paid out annually, monthly or at the end of the CD term for added flexibility. 

An overview

Term APY Minimum deposit
1 year 5% None

*Figures are correct as of June 2024.


Why we like it

You can withdraw interest paid on this Synchrony account at any time without any penalty, and there isn’t a minimum balance requirement. While the nine-month term is the only CD option that pays 5% APY or more, there are numerous other options that pay 4% or more.

An overview

Term APY Minimum deposit
9 months 5.10% None

*Figures are correct as of June 2024.

Western Alliance

Why we like it

There’s no real minimum deposit amount because you can open a Western Alliance CD through Raisin with as little as $1. While the three-month CD offers an APY of 5.21%, there is the option for a six-month CD with an APY of 5.13%.

An overview

Term APY Minimum deposit
3 months 5.21% $1

*Figures are correct as of June 2024.


How much money can I make with a 5% CD rate?

The amount you earn with any certificate of deposit depends on factors such as:

To understand how much you can earn with a 5% CD, consider the table below:

Initial deposit Interest earned Total balance after 1 year
$500 $25 $525
$1,000 $50 $1,050
$2,500 $125 $2,625
$5,000 $250 $5,250
$10,000 $500 $10,500
$15,000 $750 $15750
$20,000 $1,000 $21,000

*The calculations provided are just a simple representation and may differ depending on the calculator used. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.

Should I get a 5% CD?

A CD with a 5% APY might be a good choice for you if:


You want a stable, safe savings option.

CDs offer a safe investment and a guaranteed return if you abide by the terms of your account. Furthermore, 5% CD rates are well above average for national CD and savings deposit interest rates, allowing you to earn more on your money than you might with other types of accounts.

See More See Less

You have short or mid-length savings goals.

CDs are commonly for terms of three months to five years, and currently, the best rates tend to be on terms of 12 months or less. If you have savings goals within those time periods, CDs can be a good tool.

See More See Less

You don’t need the funds right away.

CDs require you to keep the funds in your account for a specified period of time. If you withdraw funds early, you may pay a hefty penalty and lose any or all interest you might otherwise have earned. For instance, if you select a CD with a six-month term, those funds are committed for six months.

See More See Less

You don’t think the interest rates will rise significantly during the term.

If investment advice seems to be that interest rates on CDs will rise significantly in the short term, you may want to hold off on investing a lot of your funds with a longer-term CD.

See More See Less

CD ladders

If you do decide that CDs are a good choice for you, consider whether a CD laddering strategy might be helpful. Laddering occurs when you break your funds into numerous CD investments, spreading them out over time so that funds become available at different times. 

For example, if you have $10,000 to invest, you may not want to put it all in a single one-year CD. Instead, you could:

Your entire $10,000 won’t be tied up for the whole year, but you can roll each smaller amount into new CDs if you still don’t need the cash when the maturity dates hit.

Alternatives to a 5% CD

CDs that pay 5% or more are only one of the ways to make your money work for you. Most banks offer some other savings options.

High-yield savings accounts

High-yield savings accounts can offer rates of 4% or 5%, especially if you choose an online bank. You can also find accounts that don’t require minimum balance or deposit amounts and don’t charge monthly maintenance fees, making it easier to access this savings option. 

The main difference between a savings account and a CD is that your funds aren’t held up for a certain period of time. You can move money in and out of your savings account more freely as it is only limited by whatever withdrawal limitations your bank might have. 

Money market accounts

A money market account is a type of savings account that usually offers higher interest rates than regular savings accounts and provides limited check-writing and debit card privileges. It can be considered as a hybrid between a checking and savings account, but the features of money market accounts vary at each bank.

One reason for choosing a money market account is that they typically offer a higher APY than traditional checking accounts while providing access to funds that are more flexible than what you get with a savings account or CD.

Our top picks for CD rates

FAQ: 5% CD rates

What bank is paying 5% on CDs?

Numerous banks offer CDs with 5% or higher APY. Capital One, Sallie Mae, Quontic Bank and Synchrony are a few that offer such rates currently. 

However, rates do change frequently so it’s important for you to do your research when shopping for certificate of deposit options.

Is 5% for a CD good?

Yes, 5% APY is a good return on a CD. It is much higher than the national savings average for deposit accounts — between five to 10 times higher, depending on the type of account you’re considering.

Who is paying the highest CD rates right now?

Generally, online banks pay the highest savings and CD rates. This is because they don’t have the same expenses traditional branch-based financial institutions do.

Online banks can often pass those savings on to account holders by paying higher interest rates and not charging monthly maintenance or other fees.

Can you get 6% on a CD?

In some cases, you can find 6% CDs. Often, these somewhat elusive savings opportunities require hefty initial deposits, though, and may come with fees or other costs that make them less accessible than other options. 

Credit unions may also offer 6% APY as an introductory offer for CDs to entice consumers to become members or open new accounts.

Is a 5% CD worth it?

A 5% CD can be worth it if you don’t need your funds immediately and you want to keep your money in a safe, secure account while also earning a little interest on it.

How much can I make on a 5% CD?

How much you make on a 5% CD depends on how much you deposit and how long the term is. The larger your deposit and the longer the term, the more interest your funds will earn.

About the Author

Sarah Stasik
Sarah Stasik Personal Finance

Sarah Stasik is well versed in personal finance thanks to her previous role as a Revenue Cycle Manager for a Fortune 500 healthcare company. Using her inside knowledge and expertise, Sarah often covers topics ranging from insurance and the economics of private healthcare to personal finance and small business management.

With more than a dozen years of writing experience, Sarah has tackled niches that range from technical advances in fintech to personal budgeting challenges. She has covered topics such as insurance and the economics of private healthcare, small business management and accounting, and credit and savings. Her writing focuses on making complex or seemingly daunting financial topics more accessible and providing helpful and relevant resources for readers.

About the Reviewer

Blake Esken
Blake Esken Los Angeles Times

Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.

As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.

He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.