Best 5-Year CD Rates 2026: Top APYs vs the 5-Year MYGA Math
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Rates checked on each bank's site and DepositAccounts · Updated
The best 5-year CD rates on September 24, 2026 were 4.50% APY (Bread Savings and Popular Direct), with Sallie Mae at 4.40% and Marcus and Synchrony at 4.35% on their own rate pages.
A-rated insurers' 5-year MYGAs paid about 5.80% to 6.00% the same day, tax-deferred. On $250,000 that is about $16,100 more after federal tax over five years (24% bracket). The CD keeps FDIC insurance and a smaller exit cost.
Top nationally available 5-year CDs
| Institution | Product | APY | Min. to open | Early withdrawal penalty |
|---|---|---|---|---|
| Bread Savings | 5 Year CD | 4.50% | $1.5k | 365 Days |
| Popular Direct | 60 Month Popular Direct CD | 4.50% | $10k | 730 Days |
| E*TRADE from Morgan Stanley | 60 Month CD | 4.40% | $0 | not listed |
| Sallie Mae Bank | 60 Month CD | 4.40% | $2.5k | 180 Days |
| Marcus by Goldman Sachs | 5 Year High-yield CD | 4.35% | $500 | 180 Days |
| Synchrony Bank | 60 Month CD | 4.35% | $0 | 365 Days |
| CFG Bank | 60 Month CD | 4.30% | $500 | not listed |
| Sullivan Bank | 60 Month CD Special | 4.30% | not listed | not listed |
| Barclays | 60 Month Online CD | 4.25% | $0 | 180 Days |
| Merrick Bank | 60 Month CD | 4.25% | $25k | not listed |
Source: DepositAccounts 5 year CD table (updated 09/25/2026). “Not listed” = not shown in the table; get it from the bank. Verify before opening.
5-year rates at the big names, from their own sites
| Institution | 5-year APY | Min. to open | Source / as of |
|---|---|---|---|
| Sallie Mae Bank | 4.40% | $2,500 | salliemae.com, 9/24/2026 |
| Marcus by Goldman Sachs | 4.35% | $500 | marcus.com, 9/24/2026 |
| Synchrony Bank | 4.35% | $0 | synchrony.com, 9/24/2026 |
| Barclays | 4.25% | $0 | banking.us.barclays, 9/11/2026 |
| Ally Bank | 4.10% | $0 | ally.com, 9/24/2026 |
| Navy Federal CU ($1K / $100K+) | 3.85% / 3.90% | $1,000 | navyfederal.org, 9/24/2026 |
| Capital One 360 (60-month) | 3.60% | $0 | capitalone.com, 9/24/2026 |
| American Express (60-month) | 3.00% | $0 | americanexpress.com, 9/24/2026 |
Each figure copied from the institution's own rate page on the date shown. Discover no longer opens CDs (its CD page redirects to Capital One).
Two things I notice. The big-bank spread is wide: 3.00% at American Express to 4.40% at Sallie Mae on the same term, so the name on the door matters less than the rate sheet. And several banks pay less for 5 years than for shorter terms (Navy Federal 3.85% vs 4.10% on 3 years; Capital One 3.60% vs a 4.30% 11-month special).
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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The math: $250,000 for 5 years, CD vs MYGA
Same principal, the best 5-year CD (4.50%) against a 5.80% MYGA, the low end of the A-rated benchmark. CD interest is taxed every year at 24% federal, so only 76% of it compounds. MYGA interest compounds untaxed and is taxed once, at the end.
| 5-year CD at 4.50% (after tax each year) | 5-year MYGA at 5.80% | |
|---|---|---|
| Year 1 | ~$258,600 | ~$264,500 (before tax) |
| Year 3 | ~$276,500 | ~$296,100 (before tax) |
| Year 5 | ~$295,800 | ~$331,400 before tax / ~$311,900 after |
Illustration only: 24% federal bracket, state tax ignored, no withdrawals, MYGA taxed as a lump sum at year 5. MYGA figures: A-rated-or-better insurers, 5-year compound-interest MYGAs, about 5.80% to 6.00% per AnnuityRateWatch carrier data, September 24, 2026. Rates vary by state, premium and carrier.
The MYGA ends about $16,100 ahead after tax. If the MYGA is exchanged into another annuity at maturity (a 1035 exchange), the tax can stay deferred longer. If you are in a lower bracket when you withdraw, the gap is larger; if you cash out before 59½, the IRS 10% penalty on the gain eats into it.
| Feature | 5-year CD | 5-year MYGA |
|---|---|---|
| Rate, Sept 24, 2026 | 4.35%-4.50% APY (best nationally) | ~5.80%-6.00% (A-rated insurers) |
| Tax during the term | Taxed every year (1099-INT) | Deferred until withdrawn |
| Backing | FDIC/NCUA to $250,000 | Insurer + state guaranty association (limits vary by state) |
| Early access | Interest penalty (Bread 365 days, Popular Direct 730 days, Marcus 180 days) | Free-withdrawal allowance varies by contract; surrender charge above it |
| At maturity | Rolls into a new CD at the then-current rate unless you act | Take the cash, renew, or 1035-exchange to keep deferring |
CD penalties per DepositAccounts 5-year table updated 09/25/2026. MYGA terms vary by carrier and state.
When a 5-year CD is still the right call
- Balances under a MYGA's minimum.
- IRA money where tax deferral is already built in and you want FDIC coverage.
- Money you might need before five years. A CD penalty is usually months of interest; a MYGA surrender charge can be larger in early years.
- You would rather have no insurance-company exposure. That is a fair choice; take the best CD on the list above.
Annuity vs CD side by side · Current MYGA rates · Best 5-year MYGA rates · Best CD rates by term
Frequently asked questions
What is the best 5-year CD rate right now?
4.50% APY from Bread Savings ($1,500 minimum, 365-day penalty) and Popular Direct ($10,000 minimum, 730-day penalty) on DepositAccounts' 5-year table updated 09/25/2026. Among big online banks, Sallie Mae paid 4.40% and Marcus and Synchrony 4.35% on September 24, 2026, on their own sites.
What is Navy Federal's 5-year certificate rate?
3.85% APY at the $1,000 and $20,000 tiers and 3.90% at $100,000 or more, as of September 24, 2026 (navyfederal.org). Navy Federal pays more on its 18-month and 3-year certificates (4.10% to 4.15%).
Is a 5-year CD worth it in September 2026?
It pays about as much as a 1-year CD right now (top 1-year CDs 4.35% to 4.50%, top 5-year 4.35% to 4.50%), so you lock today's rate for longer at no yield cost. The trade-off is the penalty if you need the money early, which on some 5-year CDs is 365 to 730 days of interest.
How does a 5-year MYGA compare with a 5-year CD?
A-rated-or-better insurers paid about 5.80% to 6.00% on 5-year MYGAs on September 24, 2026 (AnnuityRateWatch). On $250,000 in a 24% federal bracket, a 5.80% MYGA ends about $16,100 ahead of a 4.50% CD after tax, because MYGA interest is tax-deferred until withdrawn.
What protects a MYGA compared with a CD?
A CD is covered by FDIC or NCUA insurance up to $250,000 per depositor per ownership category. A MYGA is backed by the insurer's claims-paying ability and then by your state's life and health insurance guaranty association, whose limits vary by state.
When is a 5-year CD better than a MYGA?
When you may need the money within the term, when the balance is below a MYGA minimum, when the money is in an IRA and you want FDIC coverage, or when you do not want any insurance-company exposure.
Synchrony's 60-month CD paid 4.50% APY on October 3, 2026, with no minimum.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398). He is not a bank and is not affiliated with any institution listed. Rates are copied from the sources named, as of the dates shown. MYGA figures are a market benchmark, not a quote.
5-year CD or 5-year MYGA? Get the after-tax side-by-side
Talk to Hans Goldstein, a licensed independent insurance producer.
On $250,000 the gap was about $16,100 after federal tax at September 24, 2026 rates. Your number depends on your bracket, state and term.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This ranking reflects publicly available rate pages from bank and credit union websites and from DepositAccounts, as of the dates stated in each table. CD rates change frequently, typically weekly. Always confirm current APYs directly with the institution before opening. MYGA comparison rates are an AnnuityRateWatch benchmark for A-rated-or-better carriers as of September 24, 2026 and are subject to availability, suitability, and underwriting. The tax math illustrated uses a 24% federal marginal bracket and assumes annual interest is fully taxed; your actual after-tax outcome depends on your federal and state brackets, holding period, withdrawal timing, and applicable surrender charges or IRS penalties (10% penalty on MYGA gain portion if withdrawn before 59½). Annuities are long-term contracts with surrender charges and are not suitable for funds you may need before the end of the surrender period. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and (CA license 4273294) is not affiliated with any bank or credit union listed. No compensation has been received from any institution in connection with this page. FDIC and NCUA coverage details are subject to change; consult FDIC.gov or NCUA.gov for current rules. State guaranty association coverage for annuities varies by state.