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 a typical 2026 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
In 2026, 5-year CD rates typically range from 3.75% to 4.25% APY. Notably, this is often lower than 1-year CD rates — a sign of the inverted yield curve that has persisted into 2026. Banks are reluctant to lock in high long-term rates when they expect short-term rates to fall.
This creates a strategic decision: a 5-year CD locks in today's rate for five years, which is valuable if you believe rates will drop sharply. But you sacrifice the higher yield currently available on shorter terms, and your money is committed for a long time.
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 in 2026's inverted curve it may pay less than a 1-year CD. If rates are expected to rise, or you want flexibility, a shorter term is usually smarter. Compare both before committing.