Summary List Placement The best 5-year CD rates of September 2020
Editor’s rating (out of 5)
Ally Ally High Yield Certificate of Deposit
Delta Community Credit Union Delta Community Credit Union Certificate of Deposit
1.20% – 1.25%
Navy Federal Credit Union Navy Federal Credit Union Standard Certificate
Synchrony Synchrony CD
TAB Bank TAB Certificate of Deposit
First Internet Bank of Indiana First Internet Bank of Indiana Certificate of Deposit
1.30% – 1.40%
VyStar Credit Union VyStar Credit Union Certificate of Deposit
1.20% – 1.30%
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 September 2020, the national average APY on a 5-year CD is 0.39%, 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 1.00%. 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.
Table of Contents
Learn more about our top picks
Ally High Yield Certificate of Deposit
Why it stands out: Ally is one of the few banks that doesn’t have a minimum deposit for opening a CD, so you can start with any amount. Its early withdrawal penalties are also lower than what most banks charge.
5-year CD APY: 1.00%
5-year CD early withdrawal penalty: 150 days interest
What to look out for: Types of CDs. If you know you want a 5-year term, then Ally’s high-yield CD is the one for you.
But if you’re open to other term lengths, then you may want to look at the Raise Your Rate CD, which lets you increase your rate should Ally’s rates go up. You’d be able to increase rates once during a 2-year term and twice during a 4-year term.
Ally also has an 11-month No Penalty CD.
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 APY: 1.75%
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 …read more
Source:: Business Insider