Best 5-Month CD Rates for December 2024
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A 5-month CD is great for short-term savings. Check out 5-month CDs with great rates today.
- SkyOne Federal Credit Union:
4.10% APY - Technology Credit Union:
4.00% APY - Western Alliance Bank:
3.85% APY - Southwestern National Bank:
3.65% APY - The Atlantic Federal Credit Union:
2.50% APY - Quontic:
2.50% APY - Continental Bank:
0.65% APY
Looking for a secure place to park your funds over the next few months, while also earning a solid return? A 5-month CD offers a stable investment with guaranteed interest without a long-term commitment.
Read on for the top rates available on 5-month CDs and find the best option to secure your financial goals.
5-Month High-Yield CD - 4.10% APY
- $1 minimum deposit
- 24/7 online access
- Federally insured by NCUA
5-Month No Penalty CD - 4.00% APY
- $1 minimum deposit
- No fees
- Deposits federally insured up to at least $250,000 by NCUA
5-Month High-Yield CD - 3.85% APY
- No fees
- $1 minimum deposit
- 24/7 online access
- FDIC insured
5-Month High-Yield CD - 3.65% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
5-Month High-Yield CD - 2.50% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- NCUA insured
5-Month High-Yield CD - 2.50% APY
- No fees
- $1 minimum deposit
- 24/7 online access to funds
- FDIC insured
5-Month High-Yield CD - 0.65% APY
- No fees
- $1 minimum deposit
- 24/7 online access to funds
- FDIC insured
What is a 5-month CD?
A 5-month certificate of deposit (CD) is a savings account where you hold a fixed amount of money for a fixed term of 5 months. In exchange, you get a fixed rate that's usually higher than most savings accounts. But you cannot withdraw your money without penalty until the term ends.
A 5-month CD is one of the shortest CD terms available. These days, you can find 5-month CDs with competitive APYs. But typically, short-term CDs would have lower rates due to the shorter commitment.
Generally, you cannot withdraw money from a CD early. You're required to hold your funds for the entire term, or you will pay early withdrawal penalties worth months of interest.
How much does a 5-month CD pay?
With $50,000 in a 5-month CD at 5% APY, you can earn around $1,027 at the end of the term (not bad for a short 5-month investment).
Here's what you can earn on a 5-month CD with different APYs and deposit amounts.
$10,000 | $25,000 | $50,000 | |
---|---|---|---|
0.00% | $10,000 | $25,000 | $50,000 |
0.50% | $10,021 | $25,052 | $50,104 |
1.00% | $10,042 | $25,104 | $50,208 |
1.50% | $10,062 | $25,156 | $50,311 |
2.00% | $10,083 | $25,207 | $50,414 |
2.50% | $10,103 | $25,259 | $50,517 |
3.00% | $10,123 | $25,310 | $50,620 |
3.50% | $10,144 | $25,361 | $50,722 |
4.00% | $10,165 | $25,412 | $50,824 |
4.50% | $10,185 | $25,463 | $50,925 |
5.00% | $10,205 | $25,513 | $51,027 |
5.50% | $10,226 | $25,564 | $51,128 |
If you want to see how much your money can grow with other deposit amounts, you can use this simple CD calculator.
Is a 5-month CD Worth It?
5-month CDs are a good option if you want a short-term investment with stable, guaranteed returns. Or if you're building a CD ladder with a variety of short-term CDs. But ultimately, it will depend on your financial goals.
Say you're saving for a vacation six months from now. A 5-month CD with a high APY can be worth it, and your money will be freed up just in time for the holiday.
But if you're building an emergency fund, a CD might not be the best because you may need that money. And you may need to pay early withdrawal penalties.
Here are some of the top CD rates by term:
Term | Bank and Yield Rate |
---|---|
3 Month | Ponce Bank: |
6 Month | Quontic: |
1 Year | Alliant Credit Union: |
18 Month | Alliant Credit Union: |
2 Year | American First Credit Union: |
3 Year | mph.bank: |
4 Year | SkyOne Federal Credit Union: |
5 Year | mph.bank: |
Typically, the best time to get a 5-month CD is when the Fed Funds rate increases or if the Treasury yield is high, so you can lock in a high APY.
Can I lose money on a 5-month CD?
In most cases, you won't lose money on a CD. Your money in a CD is federally insured for up to $250,000. The Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA) will cover your deposits in case your bank or credit union fails.
But you could lose some money on a CD if you withdraw early as the penalty will likely be significant enough to eat into your principal.
Pros and Cons of a 5-month CD
Pros:
- Short term commitment
Because it's only 5 months, your money won't be locked in for too long. Unlike other investments that require you to commit for more than a year. - Lock in high interest rates
You get a fixed interest rate during the entire 5-month CD term. Your rate will typically be higher than a regular savings account. And it will stay the same regardless of market changes. - Low-risk
A CD is one of the safest investments you can get. It's secure and low-risk. Your deposits are federally insured and returns are guaranteed.
5-Month High-Yield CD - 3.85% APY
- No fees
- $1 minimum deposit
- 24/7 online access
- FDIC insured
Cons:
- Relatively lower rates
Some longer-term CDs may offer higher rates, if you're willing to lock up your money for a bit longer.Compare CD rates- mph.bank:
60-Month Callable CD - 4.42% APY - Consumers Credit Union:
17-Month Super Jumbo CD - 4.35% APY - SkyOne Federal Credit Union:
48-Month Callable CD - 4.25% APY - Sallie Mae Bank:
14-Month High-Yield CD - 4.00% APY - Alliant Credit Union:
18-Month Jumbo CD - 3.85% APY - American First Credit Union:
18-Month High-Yield CD - 3.80% APY - Blue Federal Credit Union:
15-Month High-Yield CD - 3.75% APY - CIT Bank:
13 Month CD - 3.50% APY - Quontic:
24 Month CD - 3.35% APY - The State Exchange Bank:
13-Month High-Yield CD - 3.25% APY
- mph.bank:
- Limited flexibility
Unlike other investments, you can't add more money to a CD. Nor can you pull out your money early without paying penalties. If you need flexibility, you might want to consider a regular high-yield savings account.
High-Yield Savings Premier - 4.46% APY
- No account activity or maintenance fees
- $500 minimum opening deposit
- FDIC insured
How to Choose the Best 5-Month CD
To find the best CD for you, here are some questions to ask:
What is the APY?
You'd want the highest APY to maximize your earnings. Usually, smaller online banks and credit unions will have the highest rates. So don't be afraid to look at these options (they're just as safe as big banks as long as they're a member of FDIC or NCUA).
What's the early withdrawal penalty?
Penalties for 5-month CDs usually cost a couple of months of interest (in worst cases - the full term's interest). Understand the penalty so you know the repercussions.
What is the minimum deposit?
Some CDs may have minimum opening requirements. This could range from as low as $1 to over $2,500. So make sure to choose a CD that fits your budget.
APY | Minimum Deposit | ||
---|---|---|---|
SkyOne Federal Credit Union: 5-Month High-Yield CD | 4.10% | $1 | Learn More |
Technology Credit Union: 5-Month No Penalty CD | 4.00% | $1 | Learn More |
Western Alliance Bank: 5-Month High-Yield CD | 3.85% | $1 | Learn More |
Southwestern National Bank: 5-Month High-Yield CD | 3.65% | $1 | Learn More |
The Atlantic Federal Credit Union: 5-Month High-Yield CD | 2.50% | $1 | Learn More |
Quontic: 5-Month High-Yield CD | 2.50% | $1 | Learn More |
Alternatives to 5-month CD
If you're not sure if 5-month CDs are the best option for you, here are some alternatives to consider:
High-Yield Savings Account
An online savings account gives you the flexibility to add and withdraw funds whenever you need. Plus, it's good to have for short-term goals and emergencies.
APY | ||
---|---|---|
Quontic: Money Market Account | 4.75% APY | Learn More |
CIT Bank Platinum Savings | 4.55% APY with a balance of $5,000 or more | Learn More |
Greenwood Credit Union: High-Yield Savings Account | 4.46% | Learn More |
Western Alliance Bank: High-Yield Savings Premier | 4.46% | Learn More |
mph.bank: High-Yield Savings Account | 4.45% | Learn More |
Dayspring Bank: Money Market Deposit Account | 4.45% | Learn More |
UNCLE Credit Union: Money Market Deposit Account | 4.45% | Learn More |
Dayspring Bank: High-Yield Savings Account | 4.45% | Learn More |
DR Bank: High-Yield Savings Account | 4.42% | Learn More |
Continental Bank: High Yield Savings Account | 4.41% | Learn More |
No-Penalty CDs
If you're not sure about tying up your money, no-penalty CDs let you withdraw before the term ends with no early withdrawal fees. Think of it like a savings account with locked-in returns.
APY | ||
---|---|---|
Mission Valley Bank: 3-Month No-Penalty CD | 4.20% | Learn More |
Blue Federal Credit Union: 9-Month No Penalty CD | 4.00% | Learn More |
Technology Credit Union: 5-Month No Penalty CD | 4.00% | Learn More |
SkyOne Federal Credit Union: 12-Month No-Penalty CD | 3.95% | Learn More |
Sallie Mae Bank: 14-Month No Penalty CD | 3.95% | Learn More |
Sallie Mae Bank: 10-Month No Penalty CD | 3.90% | Learn More |
Freedom Bank: 12-Month No-Penalty CD | 3.75% | Learn More |
GreenState Credit Union: 12-Month No Penalty CD | 3.70% | Learn More |
Shorter Term CDs
You can find CDs even shorter than 5 months. These are great to use in a CD ladder strategy.
APY | ||
---|---|---|
Prism Bank: 1-Month High-Yield CD | 4.40% | Learn More |
Always.bank: 1-Month High-Yield CD | 4.40% | Learn More |
Dayspring Bank: 1-Month High-Yield CD | 4.35% | Learn More |
Freedom Bank: 3-Month High-Yield CD | 4.30% | Learn More |
Freedom Bank: 1-Month High-Yield CD | 4.30% | Learn More |
Mission Valley Bank: 1-Month High-Yield CD | 4.28% | Learn More |
SkyOne Federal Credit Union: 3-Month High-Yield CD | 4.25% | Learn More |
Sterling Federal Bank: 3-Month High-Yield CD | 4.21% | Learn More |
Bank Of Utah: 3-Month High-Yield CD | 4.20% | Learn More |
United Republic Bank: 1-Month High-Yield CD | 4.15% | Learn More |
Stocks
If you don't mind risk for higher rewards, trading stocks is a popular option. However, returns are not guaranteed and you could lose money too.
How to Maximize Earnings on a 5-month CD
The most straightforward way to maximize earnings on a 5-month CD is to shop for the highest rates. A high APY will give you higher earnings as long as you don't withdraw early.
Another way to maximize interest earnings on a 5-month CD is to use it in a CD ladder. A CD ladder is a strategy where you split up your money into multiple CDs with different rates and terms.
If you have the budget to split your money into several CDs across a longer period, you may earn more. Check potential returns on your 5-month CD in a CD ladder using this CD rate calculator.
5-month CD FAQs
Who should get a 5-month CD?
A 5-month CD is good for folks who are looking for stable interest earnings and can park their money for 5 months. If you have a short-term goal, keeping your money in a 5-month CD can give you some extra dollars when the time comes.
Will 5-month CD rates go up?
There's no guarantee that 5-month CD rates will go up or down, but you can make an educated guess by observing the Fed Funds rate and the Treasury yield. If they increase, CD rates may increase as well.
What other CD terms are available?
CD terms can range from as short as 1 month up to 10 years. However, not all banks offer the same CD terms. If you can't find the term you want at a particular bank, try shopping around other banks and credit unions.
What are the types of CDs?
Here's a list of different types of CDs available.
- Term CD: standard CDs with fixed rate for fixed term
- No-Penalty CD: withdraw money early without any withdrawal penalties
- Bump-Up CD: option to increase your rate during the term
- Add-on CD: option to add more deposits
- Jumbo CD: for large deposits of usually $100,000+
- IRA CD: offers tax advantages for retirement savings
Bottom Line
A 5-month CD makes for a stable and guaranteed option to park your money for the short term. Especially with high-yield options like SkyOne Federal Credit Union at 4.10% APY.
However, think about your financial goals and situation first before locking into any investment. Ultimately, you must choose an investment that best suits your plans.
5-Month High-Yield CD - 3.85% APY
- No fees
- $1 minimum deposit
- 24/7 online access
- FDIC insured
5-Month High-Yield CD - 4.10% APY
- $1 minimum deposit
- 24/7 online access
- Federally insured by NCUA
5-Month No Penalty CD - 4.00% APY
- $1 minimum deposit
- No fees
- Deposits federally insured up to at least $250,000 by NCUA
5-Month High-Yield CD - 2.50% APY
- No fees
- $1 minimum deposit
- 24/7 online access to funds
- FDIC insured
5-Month High-Yield CD - 3.65% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- FDIC insured
5-Month High-Yield CD - 2.50% APY
- $1 minimum deposit
- No fees
- 24/7 online access to funds
- NCUA insured
5-Month High-Yield CD - 0.65% APY
- No fees
- $1 minimum deposit
- 24/7 online access to funds
- FDIC insured
Write to Rue Atanacio at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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