Summary List Placement
This post was most recently reviewed and updated on May 3, 2021.
The best 5-year CD rates of May 2021
Delta Community Credit Union Delta Community Credit Union Certificate of Deposit
0.90% – 0.95%
Navy Federal Credit Union Navy Federal Credit Union Standard Certificate
First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit
1.00% – 1.10%
VyStar Credit Union VyStar Credit Union Certificate of Deposit
0.90% – 1.00%
Golden 1 Credit Union Golden 1 Credit Union Certificate of Deposit
First National Bank of America First National Bank of America Certificate of Deposit
*As of May 2021, the national average APY on a 5-year CD is 0.24%, according to the FDIC.
If you want to grow your money but keep it safe from the turbulence of the stock market, a certificate of deposit (CD) may be a good option.
Right now, the best 5-year CD rates are at least 0.90%. You may be able to find longer terms with slightly higher rates, but most institutions’ longest terms are five years. Five-year CDs offer some of the highest guaranteed rates of return you can find right now.
All 5-year CDs with the following banks are FDIC insured, and all certificates with the credit unions are federally insured by the NCUA. For the most part, banks compound your interest daily, and credit unions compound your interest monthly. This means that even if a credit union pays a higher rate, it’s possible you’ll accumulate less wealth than with an account that compounds your interest more frequently.
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Learn more about our top picks
Delta Community Credit Union CD
Why it stands out: Delta Community Credit Union pays competitive rates, and if you need to withdraw funds before your CD matures, its penalties are lower than what most institutions charge.
5-year CD early withdrawal penalty: 270 days interest
What to look out for: Membership and compound interest. Membership is available for residents of several Georgia counties, as well as for employees of numerous companies, members of specific associations, and family members of current Delta Community members. As with many credit unions, your interest is compounded monthly rather than daily, which will limit how much wealth you build. Depending on your balance, this may or may not make a significant difference.
Navy Federal Credit Union Standard Certificate
Why it stands out: Navy Federal Credit Union pays higher rates for higher balances, but its APY is competitive regardless. For its 5-year term, early withdrawal penalties are lower than what many institutions charge. Navy Federal compounds your interest daily like most banks would, unlike many credit unions that compound monthly.
5-year CD early withdrawal penalty: 180 days interest
What to look out for: Membership and tiered APY system. You or a family member must have ties to the military for you to become a member of Navy Federal. Also, keep in mind that you won’t earn the highest APY unless your balance is …read more
Source:: Business Insider