Five-year CDs still pay over 4% as rates stay elevated

Five-year CDs are still paying more than 4% APY at some institutions in July 2026, with top offers around 4% to 4.50% and some promotional CDs advertised even higher. At that pace, an $18,000 deposit would generate about $3,899.75 in interest over five years at 4.0% APY, or about $4,431.27 at 4.5% APY, before taxes.

The Federal Reserve kept its target range for the federal funds rate at 3.5% to 3.75% on June 17, and that has kept the backdrop favorable for savers who want to lock in yield. A CD is a time deposit, so the rate stays fixed for the full term, unlike a savings account whose yield can be changed by the bank.

CDs also come with federal protection: FDIC insurance covers deposits up to at least $250,000 per depositor, per insured bank, per ownership category. The tradeoff is liquidity. Withdrawing money early usually triggers a penalty fee, and that penalty can reduce or erase the extra interest a saver was trying to preserve.

For cash that may be needed sooner, shorter-term CDs, high-yield savings accounts and Treasury bills offer different mixes of return and flexibility. Treasury bills run from four weeks to 52 weeks and can be held to maturity or sold before maturity, while a high-yield savings account keeps money accessible even though the rate can change.