The best long-term CDs to open now

Are you looking for a low-risk investment that will provide steady income over an extended period of time? Look no further than this Certificate of Deposit (CD). CDs are reliable investment accounts that offer you the same benefits (and, often, even higher) than a traditional savings or checking account High Yield Savings Account)

These higher rates come in exchange for agreeing to keep your funds in the CD for a certain period of time, known as duration. CD terms typically range from three months to five years, with the highest rates typically found on long-term CDs. And, in today’s rate environment, Long-term CDs can be especially profitable Because they allow you to lock in the current higher rate for years, even if overall interest rates fall.

That said, as with any financial product, you have plenty of options to choose from when it comes to long-term CDs. Start your CD search by comparing current rates here.

The best long-term CDs to open now

The following long-term CDs offer some of the highest rates you’ll find right now They are all there FDIC Insurance For your deposits, up to $250,000 per account per bank. They also have no fees.

3 year CD

If you are able to keep your funds untouched for three years (36 months), you can enjoy interest rates as follows:

• Popular Direct (4.53% APY): Popular Direct’s three-year CD has the highest rate on our list at 4.53%. There are no monthly maintenance fees, but you must deposit at least $10,000 when you open the account, so it’s best suited for established savers. If you have to withdraw the funds before the maturity, you will have to pay an early withdrawal penalty of 365 days of interest.
• Bread Financial (4.50% APY): With a much lower minimum deposit of $1,500, Bread Financial’s three-year CD offers 4.50% APY and the lowest withdrawal penalty on this list, with 180 days of interest.
• BMO Harris (4.30% APY): BMO Harris’ three-year CD requires a minimum deposit of $1,000 and offers an APY of 4.30%. Its early withdrawal penalty is 365 days of interest.
• Synchrony Bank (4.30% APY): Synchrony Bank is one of the only banks on the list that doesn’t require a minimum deposit for its three-year CD, making it a great choice for beginning savers who don’t have a large amount to put away but still want to earn a competitive interest rate early withdrawal for this CD. Penalty is interest for 365 days.

Secure the best interest rate you can — compare your long-term CD options today!

5 year CD

If you can afford to keep your funds in a CD for five years (60 months), these CDs are worth considering:

• Popular Direct (4.53% APY): Like its three-year CDs, Popular Direct’s five-year CDs require a minimum deposit of $10,000. It also has the largest early withdrawal penalty on this list at 730 days interest. That said, if you have a large amount of deposits, you can earn substantial interest with its 4.53% APY.
• Indiana First Internet Bank (4.49% APY): For a minimum deposit of just $1,000, you can enjoy the second highest rate on the list at 4.49% APY with First Internet Bank of Indiana’s five-year CD. Early withdrawal penalties square the middle of this list’s range of 360-day interest.
• Alliant Credit Union (4.35% APY): Alliant Credit Union’s five-year CD requires a minimum deposit of $1,000 and an early withdrawal penalty equal to the number of days the CD is open (up to 180 days of interest). It is unique in this list in that it offers a dividend withdrawal option. You can receive interest payments each month instead of earning compound interest, with no fee for doing so.
• Barclays (4.35% APY): Barclays’ five-year CD strikes an excellent balance between a competitive yield and a low early withdrawal penalty. It has no minimum deposit and charges 180 days of interest if you withdraw funds early — the lowest penalty among the five-year CDs listed here.
• BMO Harris (4.30% APY): You can earn 4.30% APY with a five-year CD from BMO Harris, which requires a minimum deposit of $1,000. Its early withdrawal penalty is high, however, at 545 days of interest, so make sure you’re comfortable keeping your funds in the account for the entire term.

Find the best CD for you by reviewing current offers online now.

Bottom line

Long-term CDs are a great investment option for savers looking for a higher interest rate who can lock in their funds for the full term of the CD. The accounts above are a great place to start, but be sure to take the time to compare your options, review all terms, and weigh the APY and features against any fees and penalties.