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.

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.

Have you ever invested in a 5-month CD?

How much do you want to deposit in a CD?

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.

Can I withdraw money from my 5-month CD?
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.

What is the most important factor for you in selecting a CD?

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.

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.

What is the highest paying CD rate right now?
Here are some of the top CD rates by term:
TermBank and Yield Rate
3 MonthPonce Bank: 3-Month High-Yield CD - 4.40% APY
6 MonthQuontic: 6 Month CD - 4.25% APY
1 YearAlliant Credit Union: 12-Month Jumbo CD - 4.15% APY
18 MonthAlliant Credit Union: 18-Month Jumbo CD - 3.85% APY
2 YearAmerican First Credit Union: 24-Month High-Yield CD - 3.75% APY
3 Yearmph.bank: 36-Month Callable CD - 4.38% APY
4 YearSkyOne Federal Credit Union: 48-Month Callable CD - 4.25% APY
5 Yearmph.bank: 60-Month Callable CD - 4.42% APY

When is the best time to get a 5-month CD?
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.

For example, let's say the early withdrawal penalty for a 5-month CD is the interest on the full term. If you need to close your CD in 3 months because of an emergency, the penalty will be greater than the interest you've earned.

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.

Cons:

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.

APYMinimum Deposit
SkyOne Federal Credit Union: 5-Month High-Yield CD4.10%$1Learn More
Technology Credit Union: 5-Month No Penalty CD4.00%$1Learn More
Western Alliance Bank: 5-Month High-Yield CD3.85%$1Learn More
Southwestern National Bank: 5-Month High-Yield CD3.65%$1Learn More
The Atlantic Federal Credit Union: 5-Month High-Yield CD2.50%$1Learn More
Quontic: 5-Month High-Yield CD2.50%$1Learn 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 Account4.75% APYLearn More
CIT Bank Platinum Savings4.55% APY with a balance of $5,000 or moreLearn More
Greenwood Credit Union: High-Yield Savings Account4.46%Learn More
Western Alliance Bank: High-Yield Savings Premier4.46%Learn More
mph.bank: High-Yield Savings Account4.45%Learn More
Dayspring Bank: Money Market Deposit Account4.45%Learn More
UNCLE Credit Union: Money Market Deposit Account4.45%Learn More
Dayspring Bank: High-Yield Savings Account4.45%Learn More
DR Bank: High-Yield Savings Account4.42%Learn More
Continental Bank: High Yield Savings Account4.41%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 CD4.20%Learn More
Blue Federal Credit Union: 9-Month No Penalty CD4.00%Learn More
Technology Credit Union: 5-Month No Penalty CD4.00%Learn More
SkyOne Federal Credit Union: 12-Month No-Penalty CD3.95%Learn More
Sallie Mae Bank: 14-Month No Penalty CD3.95%Learn More
Sallie Mae Bank: 10-Month No Penalty CD3.90%Learn More
Freedom Bank: 12-Month No-Penalty CD3.75%Learn More
GreenState Credit Union: 12-Month No Penalty CD3.70%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 CD4.40%Learn More
Always.bank: 1-Month High-Yield CD4.40%Learn More
Dayspring Bank: 1-Month High-Yield CD4.35%Learn More
Freedom Bank: 3-Month High-Yield CD4.30%Learn More
Freedom Bank: 1-Month High-Yield CD4.30%Learn More
Mission Valley Bank: 1-Month High-Yield CD4.28%Learn More
SkyOne Federal Credit Union: 3-Month High-Yield CD4.25%Learn More
Sterling Federal Bank: 3-Month High-Yield CD4.21%Learn More
Bank Of Utah: 3-Month High-Yield CD4.20%Learn More
United Republic Bank: 1-Month High-Yield CD4.15%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.

If you need to withdraw your money during the term, you might want to consider other options. If you have a larger risk appetite, CDs might not be the best fit for you. Ultimately, it will depend on your specific financial goals.

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.

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.


Best CD Rates

March 27, 2017 - Reviews for Bank Reviews & Deals
Unearth the highest CD rates and maximize your savings. This list showcases the banks with the most lucrative rates.
How much do you want to deposit in a CD?
9% Under $5,000
9% $5,000 to $9,999
17% $10,000 to $24,999
13% $25,000 to $49,999
52% $50,000 or more
Source: CreditDonkey
What is the most important factor for you in selecting a CD?
87% High interest rates
13% Reputation of the bank
Source: CreditDonkey
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