Massachusetts

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Massachusetts CD Rates – 5-Year

You are viewing rates from banks across Massachusetts

 

Below are 5-year CD Rates from banks that are located in Massachusetts. Five-Year Certificates of Deposit (CD) are generally the longest term CD that most banks will offer. They tend to offer the highest rates but require the longest commitment. Five year CDs are especially popular in a declining interest rate environment as depositors can lock money in at the highest rate possible for the longest period of time. They are also popular with depositors who are willing to lock up money for five years in return for extra yield.

MA - December 23, 2024

5 Year CD National Average : 0.92% ?

Banks APY MIN MILES ?

Rate History: 3.95% → 3.85% → 3.80%

| Feb 9, 2021

The wonderful assistants at Beal Bank are wonderful. Rebeca took great care of me and made sure all my concerns were addressed. Read More

| Jan 9, 2021

Used to be a good bank!! Taking money out of my account for something I did not purchase. This is the second time they did this. They do it on Fridays knowing that no one from the Fraud Department isn't th... Read More

Early Withdrawal Penalty is 180 days interest.
Rate History: 4.55% → 4.50% → 4.15% → 4.00% → 3.75%

| Nov 21, 2023

A real pain in the *** process to try and get approved! They were unable to match my drivers license photo with my live image after several times trying! Went to limelight bank instead and got approved in ... Read More

Rate History: 3.60% → 3.70%

| Mar 25, 2020

I was told on the phone by a bank rep that my present money market acct interest rate would continue at 2.25% until June 30, 2020 and would be FDIC covered up to $250,000. Please verify if this is true???... Read More

Rate History: 1.00% → 3.50%

Rate History: 1.00% → 4.50% → 3.75% → 3.50%

Rate History: 0.50% → 0.40% → 0.50% → 0.40% → 3.50%

Rate History: 4.00% → 3.90% → 3.75% → 3.50%

| Jan 2, 2024

Like others, I've been with Capital One and its predecessor ING Direct since 2007. I've also been getting cheap bank rates on my savings account and didn't realize that there was something better, although... Read More

Rate History: 3.50% → 4.00% → 3.70% → 3.40%

Rate History: 2.60% → 3.25%

| Jul 26, 2024

Multiple roadblocks trying to set up a savings account with Ivy Bank and my application was ultimately declined, in spite of my multiple CDs among three banks, stock investments, eleven credit cards, and c... Read More

Rate History: 2.00% → 3.25%

| Feb 14, 2022

I had a personal checking account and a business account. All went well until I sent a polite letter pointing out that it is improper, and not good practice, to make online passwords expire. Why should ... Read More

| Mar 27, 2019

Still waiting for a call back from Liz over a long standing,annoying account problem Read More

Rate History: 3.82% → 3.56% → 3.30% → 3.05%

Rate History: 3.82% → 3.51% → 3.56% → 3.05%

| Aug 16, 2019

Deceptive Sales Practices: Huge Penalties What an awakening! Without any clear statement, and nothing at all on its website, Avidia charged us 50% of the CD’s FULL TERM interest, including both paid... Read More

Rate History: 0.40% → 0.30% → 3.55% → 3.04%

| Sep 14, 2023

Used them my whole life! Great little bank! Read More

Rate History: 0.50% → 3.75% → 4.00% → 3.00%

| Jan 30, 2020

Find branch personnel are genuinely interested in my business. Read More

Rate History: 3.00% → 2.75%

| Mar 20, 2016

Good solid bank. Read More

| Apr 18, 2017

Village Bank currently has a 15 mo. CD special at 1.50% Read More

Rate History: 1.00% → 0.13% → 2.50%

| Nov 13, 2019

My favorite bank in South Dennis MA. There are always sufficient enough staff so that there is never a long waiting line. And the staff is always pleasant and efficient. Read More

Rate History: 1.00% → 2.50%

Rate History: 2.45% → 2.40%

| Jan 8, 2018

Another bad bank! Did a hard pull just to open a checking account with no overdraft and denied me. Never even bothered to send a letter or e-mail. Now I have another inquiry on my credit report for nothin... Read More

Rate History: 2.27% → 2.12%

| Feb 25, 2022

I joined Citi with a Costco-VISA card. An Accelerate followed, and then a checking account. Costco-VISA is necessary for using a credit card at Costco, otherwise cash is necessary. Accelerate Savings w... Read More

Rate History: 2.00% → 2.50% → 2.00%

| Jan 2, 2023

Terrible customer service by investment side. Fees too high , too full of themselves Read More

Rate History: 1.00% → 1.75%

Rate History: 2.50% → 1.50%

| Nov 28, 2022

While USAA was at one point a great option for all your banking needs, the service has deteriorated so much that I'm currently in the process of changing banks after more than 2 decades. The final straw w... Read More

Rate History: 1.51% → 1.31%

1.25%

$10

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| Jan 12, 2021

They put paychecks on hold for a day so don’t expect your paycheck right away and they don’t answer their phones Read More

1.25%

$10,000

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1.15%

$10,000

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Rate History: 1.00% → 1.02%

1.01%

$10,000

-

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1.00%

$500

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1.00%

$10,000

-

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| Jun 13, 2016

I'm interested in your special sav send info Read More

1.00%

$10,000

-

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| Nov 5, 2020

Appalling customer service! Don't answer the phone, a simple credit line takes days & a mountain of paperwork - absolutely not worth the trouble! Read More

0.90%

$500

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0.90%

$10,000

-

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0.85%

$10,000

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Rate History: 0.70% → 0.80%

| Feb 21, 2015

Interesting. Is there an approximate Texas ratio for a bank at which other banks may become very interested in an acquisition. Read More

0.75%

$10,000

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0.75%

$10,000

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| Apr 18, 2016

No 2% 12 month CD unless IRA. Misleading at best. Read More

Rate History: 1.00% → 0.75%

| Jan 23, 2017

2.50 Read More

Rate History: 0.65% → 2.50% → 0.75%

0.75%

$1,000

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0.65%

$500

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0.60%

$10,000

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0.60%

$10,000

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| Aug 28, 2022

Rates are totally uncompetitive now. Read More

| Jan 12, 2021

They put paychecks on hold for a day so don’t expect your paycheck right away and they don’t answer their phones Read More

0.50%

$10,000

-

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0.50%

$10,000

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Rate History: 0.50% → 0.35% → 0.45% → 0.40%

| Jun 12, 2023

US Bank reported me to dult Protective Services because my husband is 85 and I am63. He got sick and went into a nursing hime for 3 months. My husband always handled the financial affairs. I had to take ov... Read More

0.35%

$100,000

-

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0.30%

$10,000

-

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| Jan 1, 2016

I very much prefer banking here. Everyone is so friendly and know who is calling by voice. Your help getting me through this year where I did as much as possible to launch my business, CryoRain Inc., is ... Read More

| Nov 1, 2021

worst bank ever and they racist ruth bitchell and the rest of them ban frontline workers that complain about their mistakes this only happens to blacks Read More

| Apr 4, 2016

I been with trustco for years and it is well run. They really are a home town bank. As a small business person i appreciate the business card stand they have in the branches for there customers. I was w... Read More

Rate History: 0.03% → 0.05%

| Mar 28, 2023

On line banking gives a confirmation number when paying bills. But it doesn’t confirm that the bill will be paid only that they have the information. Ridiculous. Read More

| May 18, 2019

Had checking and savings for years when living in Philly. Went into PNC 2.35 APY high yield savings. They have thus far maintained rate. Easy web site and great customer phone service. Still maintain check... Read More

| Jul 24, 2023

BOFA is a den of people thieves camouflaged as bank operatives. There’s a soon to be uncovered carrel of money laundry there. They took all my money and don’t want to release it to me for no particular... Read More

All rates listed are Annual Percentage Yield (APY). The Min listed is the minimum deposit account balance required to obtain the rate listed.

BestCashCow strives to maintain the most accurate rates. If you believe a rate is not accurate, please let us know.

PRODUCT INFORMATION

Five Year CDs - Branch Banks 2024

Five-year CDs are the big kahuna of the CD world. While banks may offer six-year, seven-year, or even 10-year CDs, the five-year is the longest of the most commonly offered terms. The 5-year CD is therefore often the highest offer at your local bank. Therefore, the temptation for those looking for yield is to open one, deposit money, and forget about it for five years. This could be a mistake. In rising rate environments a five-year CD may not be a good investment.

Safety

Like every other CD term, five year CDs from FDIC insured banks are protected up to FDIC limits (generally $250,000 per account holder per bank). If your deposit is over the FDIC limit then you may not receive the uninsured money in case of a bank failure.

Inflation

The principle threat to a a five year CD is inflation. If the CD is opened in a low rate environment, and rates and inflation subsequently rise, then inflation will erode the value of the certificate of deposit over its five years. For example, if a depositor opened a five year CD in year 1 with a yield of 2.05% APY and inflation at 1.5%, then the real return is .55 percentage points. But if inflation rises the next year to 2.5% and stays there for the next four years, then the CD in real terms is losing money every year: 2.05% - 2.5% = -.45%.

While it is impossible for anyone to predict too far into the future, savers should be cognizant of the economic environment before locking up money for a five year time-period. Our rate analysis page provides some insight into where we think rates will go.

On the other hand, if rates are falling and will continue to do so for some time due to an economic recession then it makes sense to lock in a higher rate with a five year CD. Savers who opened five year CDs in 2008 immediately after the financial crisis were able to lock in rates in the 6% range, a great move considering two years later a five year CD paid below 3%.

Interest

Five-year CDs currently pay about 1.00% more in interest than a one year CD. In general, CDs of this duration are best opened as part of a laddered CD portfolio or if the depositor thinks that rates will either stagnate or drop over the next couple of years.

Opening a Five Year CD

Opening a five year CD in a branch is relatively easy and similar to every other CD term. Most banks require the customer be a resident of the United States and most branch-based banks ask that the account be opened in the bank. Funding can be performed by transferring money that is already located at that bank or by check or ACH transfer from another bank. The CD can be opened that day and the rate locked.

With longer term CDs, savers should make sure they put a record of the CD in a safe place and that if they move, they forward their new address to the bank. In cases where the bank cannot find the CD holder, the bank may hand the funds over to a state authority as a lost deposit, and it will require onerous paperwork to reclaim the money.

ADVANTAGES AND DISADVANTAGES OF FIVE YEAR CDs

Advantages of five year CDs

  • 5 year CDs provide the highest rate of the common CD terms.
  • The return is fixed for five years, which is an advantage in a flat or falling rate environment.

Disadvantages of five year CDs

  • The money is locked away for five years and cannot be withdrawn without a substantial penalty.
  • In a rising rate environment, inflation will reduce the value of the money in the CD over time.
  • Branch CDs require the saver to visit a branch and be subjected to cross-sell pitches and other marketing tactics.

All banks listed on BestCashCow are FDIC insured; BestCashCow.com strongly recommends that you stay within FDIC insurance limits and that if you are unsure of how the limits affect you, please visit the FDIC website.

To understand all of the income generating options available to a saver, please view the Income Generating Investments Comparison Chart.

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