How today's CD rates compare
The FDIC's national average rate next to the Treasury yield for the same term, as of August 31, 2026. Rates vary widely between banks, and the Treasury yield is a useful yardstick for any offer.
| CD term | National average | Treasury yield | Interest on $10,000 at the average |
|---|---|---|---|
| 60-month | 1.38% | 4.49% | $710 |
Sources: FDIC national rates (deposits under $100,000) and Federal Reserve H.15. Updated monthly in our CD Rate Gap Report.
How Much Does a 5-Year CD Earn?
A 5-year (60-month) CD is the long-term anchor of certificate-of-deposit investing. It locks in a fixed rate for five full years, protecting you from any future rate cuts — and thanks to compounding, the total interest is substantial. The calculator above is preset to a 60-month term.
Here is what a 5-year CD earns at an example rate of 4.00% APY (compounded daily):
| Deposit | Interest Earned (5 years) | Maturity Value |
|---|---|---|
| $1,000 | $221.34 | $1,221.34 |
| $5,000 | $1,106.70 | $6,106.70 |
| $10,000 | $2,213.40 | $12,213.40 |
| $25,000 | $5,533.50 | $30,533.50 |
| $50,000 | $11,067.00 | $61,067.00 |
Over five years, compounding does real work: $10,000 grows by more than $2,200 — over 22% of the original deposit — with zero market risk.
5-Year CD Rates in 2026
At the average bank, 5-year CDs pay less than 1-year CDs. According to the FDIC, the national averages were 1.38% and 1.73% APY on August 31, 2026, even though the 5-year Treasury yielded more than the 1-year (4.49% vs. 4.16%). The table above is updated every month.
This creates a strategic decision: a 5-year CD locks in a rate for five years, which is valuable if rates drop. But at the average bank you give up yield compared with shorter terms, and your money is committed for a long time, so compare offers carefully before locking in.
When a 5-Year CD Makes Sense
A 5-year CD is the right choice when:
- You want to lock in a rate long-term — if you expect the Fed to cut rates significantly, a 5-year CD guarantees today's rate for half a decade.
- You have money you truly will not need — funds earmarked for a goal 5+ years away, or a conservative slice of a larger portfolio.
- You want maximum guaranteed compounding — five years of daily compounding produces meaningful growth with zero risk to principal.
- You are anchoring a CD ladder — the 5-year rung is the high-yield backbone of a classic ladder.
The downside: a 5-year CD has the steepest early-withdrawal penalty (often 6-12 months of interest), and at the average bank it has paid less than a 1-year CD in 2026. If rates are expected to rise, or you want flexibility, a shorter term is usually smarter. Compare both before committing.