5.00% APY CDs Are Getting Scarce. 3 Places You Can Still Find Them if You Hurry

Over the last couple of years, we've enjoyed sky-high interest rates on CDs, but times are changing. Inflation has already come down a little and it's expected to drop further throughout the rest of the year. It's great news for borrowers, but bad news for savers, because CD rates are likely to drop.

We've already seen several top banks drop their highest CD APYs from roughly 5.00% to closer to 4.50%. But there are still a few banks offering that coveted 5.00% interest rate if you know where to look. Here are three to put at the top of your list.

1. LendingClub (4.00% APY)

LendingClub currently offers a 1-year CD with a 4.00% APY. This is among the highest rates you'll find today. Its biggest drawback is its $2,500 minimum deposit requirement. This could bar some people from opening this CD.

But if you can afford it, it could earn you $131.83 on a $2,500 initial deposit. That's a pretty decent return for just leaving your cash alone for a year.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

2. Barclays (rate updating APY)

Barclays also earns a place among the best CDs of the moment for its competitive rate updating APY on a 1-year CD. Unlike the LendingClub CD, Barclays doesn't have a minimum balance requirement, so it's accessible for those with smaller balances.

For comparison's sake, let's say you put $2,500 in this account. After one year, you'd have earned $127.90 -- just $3.93 less than what you could've earned with LendingClub.

3. Western Alliance Bank -- CD offered through Raisin (3.95% APY)

Western Alliance Bank isn't as well-known as the other banks listed here, but its 1-year CD offering through the Raisin platform is just slightly more competitive than Barclays'. Its APY sits at 3.95%, meaning it would earn you $129.21 at the end of its 1-year term on the same $2,500 investment scenario used above.

You only need a $1 minimum deposit to open one of these CDs.

Is a 5.00% APY CD right for you?

One of the above CDs could be a good fit if you're looking to lock in a competitive rate before CD rates fall. But keep in mind, you're locking away your cash for a year. Early withdrawals bring penalties that could reduce your earnings or even cost you your principal in some cases.

If you think you might need to access some of your cash early, a high-yield savings account is a better fit. Though your interest rate isn't locked in, neither is your money. You can move or withdraw cash as needed, so it's a much better choice for short-term savings and your emergency fund.

A 5.00% APY CD might also be a poor fit if you hope to lock in an above-average interest rate for longer than one year. Longer-term CDs have APYs closer to 4.00% right now, though these could also fall later in the year. Despite the lower interest rate, they could lead to more earnings because of the longer term.

You could also split some of your money between a one-year CD and one or more longer-term CDs. This is called a CD ladder. It lets you capitalize on the higher earning potential long-term CDs usually offer while still giving you access to some of your cash at shorter intervals.

It's worth taking time to review all your options before making any big decisions with your money. But don't put it off too long. CD interest rates probably aren't going to tank in the next couple of weeks, but I'd be surprised if you could still find 5.00% APY CDs in a few more months. So if you know that's what you want, act soon to lock in that high rate while you can.