Amanda has written in the personal finance space for several years and previously worked as a risk analyst at a local community bank. She researches economics, emerging financial trends and the future of work, publishing her work on Medium.
Amanda Claypool
Amanda has written in the personal finance space for several years and previously worked as a risk analyst at a local community bank. She researches economics, emerging financial trends and the future of work, publishing her work on Medium.
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Fact Checked
Elizabeth Aldrich
With eight years of experience as a financial journalist and editor and a degree in economics, Elizabeth Aldrich has worked on thousands of articles within the realm of banking, economics, credit cards, investing, loans, personal finance and travel. Her work has been featured in Business Insider, The Motley Fool, Bankrate, Investopedia, LendingTree, Student Loan Hero, ValuePenguin, USA Today, Credit Karma, NASDAQ, Yahoo! Finance and more.
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
The best CDs can offer the opportunity to earn more cash on your savings than you’d earn by keeping it in a traditional savings account. With a seven-year CD, you lock up your funds for quite a while, but you also lock in a guaranteed interest rate for seven years. The best seven-year CDs can help you earn high yields for years to come, even if interest rates fall.
Annual percentage yields and account details are accurate as of May 3, 2024.
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Show Summary
Best 7-Year CD Rates Of May 2024
First National Bank of America Certificates of Deposit
CD APY 84-month
4.30%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Quarterly
Learn More
On Bankrate.com's Website
4.30%
$1,000
Quarterly
Editor's Take
Our experts picked First National Bank of America because it offers one of the highest rates for a seven-year CD at 4.30% APY. New accounts require a $1,000 minimum deposit. FNBA offers CD terms ranging from six months to 84 months, all with competitive rates, so you can easily create a CD ladder.
Pros & Cons
- Competitive APYs across CD terms
- Offers 72-month and 84-month CDs
- Relatively low minimum deposit requirement
- Highly rated mobile app
- Interest compounded quarterly
- It’s possible to find higher rates on some CD terms at other banks and credit unions
Details
Rates
- 6 months: 3.05% APY
- 12 months: 5.15% APY
- 24 months: 4.80% APY
- 36 months: 4.65% APY
- 48 months: 4.55% APY
- 60 months: 4.55% APY
- 72 months: 4.35% APY
- 84 months: 4.30% APY
Rates and CD options may differ slightly for Michigan residents.
Compounding schedule
Interest is compounded and credited to your account quarterly.
Early withdrawal penalties and grace period
The early withdrawal penalty ranges from 90 to 540 days of interest, depending on the term length. The bank provides a notice approximately 30 days before the CD matures, at which time you can decide to withdraw your funds, automatically renew your CD or rollover your funds to a different CD.
Expert's Take
High long-term yields on First National Bank’s CDs may be suitable for those looking to lock in earnings over extended periods. However, quarterly compounded interest rates (versus monthly compounded rates) and high early withdrawal penalties may be drawbacks.
—Wenyao Hu, CFA and Ph.D. Candidate
First National Bank of America CD Rates
| Term | APY |
|---|---|
6 Months
| 3.05% APY
|
12 Months
| 5.15% APY
|
24 Months
| 4.80% APY
|
36 Months
| 4.65% APY
|
48 Months
| 4.55% APY
|
60 Months
| 4.55% APY
|
72 Months
| 4.35% APY
|
84 Months
| 4.30% APY
|
Rates and CD options may differ slightly for Michigan residents.
Navy Federal Credit Union Standard Certificate
CD APY 84-month
3.80%
$1,000 minimum deposit
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Daily
3.80%
$1,000 minimum deposit
$1,000
Daily
Editor's Take
Navy Federal Credit Union topped our experts’ list thanks to its competitive rate of 3.80% APY on a seven-year Standard Certificate. The certificate offers daily compounding, so you’ll earn interest at a faster rate. Its relatively low minimum deposit requirement makes this certificate accessible, although you will have to meet credit union membership requirements to join and open a certificate at NFCU.
Pros & Cons
- Competitive rates for short- and long-term certificates
- CDs are renewable up to 21 days after maturity
- No shared branch banking
- Available only to military members and their families
- $1,000 minimum opening deposit
- Highest APYs require a $100,000 minimum balance
Details
Dividends are compounded daily for all certificate terms and credited monthly. Early withdrawal penalties apply when withdrawing funds ahead of maturity. The penalty ranges from 90 to 365 days’ worth of dividends earned, depending on the certificate’s maturity term. When an early withdrawal results in the remaining certificate balance being lower than the minimum balance requirement, the certificate will be closed and a penalty will apply.
PenFed Credit Union Money Market Certificates
CD APY 84-month
3.40%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Daily
Learn More
On Bankrate.com's Website
3.40%
$1,000
Daily
Editor's Take
PenFed’s Money Market Certificate made our experts’ list because it comes with a competitive APY, and anyone in the U.S. can apply for membership. The PenFed 7-year certificate earns 3.40% APY, compounded daily, and can be opened online with a relatively low minimum deposit. Rates on other terms, ranging from six months to seven years, are similarly competitive.
Pros & Cons
- Competitive dividend rates across terms
- Wide range of certificate terms
- Change your maturity option at any time prior to maturity
- Dividends compounded daily on certificate terms greater than six months
- Highly rated mobile app
- Membership is required to open a certificate
- Early withdrawal penalties can be steep
- Must open a savings account to access certificates
Details
Compounding schedule
The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends on six-month certificates are earned on a simple (not compound) interest basis and are paid when the certificate matures. Dividends on all other CDs are compounded daily and credited monthly.
Early withdrawal penalties
Early withdrawal penalties vary by term.
Maturity options
With PenFed, you choose your maturity option when you open your certificate and can change it anytime prior to maturity. This gives you some flexibility, and extra time, to decide what you’d like to do with the funds in your account when it matures. You can transfer the funds into another PenFed account, roll it into a new certificate, get a mailed check or transfer it via ACH.
Expert's Take
PenFed certificates have significantly lower rates across the maturity spectrum than others. In addition, their early withdrawal penalties are pretty onerous compared to what is standard. They’re about the most severe I have heard.
—Jill Fopiano, CEO at O’Brien Wealth Partners
PenFed Credit Union CD Rates
| Term | APY |
|---|---|
6 Months
| 3.00%
|
12 Months
| 4.20%
|
15 Months
| 4.20%
|
18 Months
| 4.20%
|
24 Months
| 4.20%
|
36 Months
| 3.60%
|
48 Months
| 3.50%
|
60 Months
| 3.50%
|
84 Months
| 3.40%
|
Discover® Certificates of Deposit
CD APY 84-month
3.75%
Minimum Deposit Requirement
$2,500
Interest Compounding Frequency
Daily
Learn More
On Discover's Website
3.75%
$2,500
Daily
Editor's Take
Our experts liked Discover’s seven-year CD for its competitive rate of 3.75% APY and daily compounding. While Discover’s CDs come with an above-average minimum deposit requirement of $2,500, they have some of the best rates and can be opened with an easy online application.
Pros & Cons
- One of the best 10-year CD rates
- No fees for opening or maintaining your CD account
- Early withdrawal penalty is 24 months of simple interest
- $2,500 minimum deposit might be too much for some savers
- Same APY is available on Discover’s 3-year and 5-year CDs
Details
Discover Online Banking offers a high-yield savings account and various other financial products for personal banking. Its 10-year CD gives you a guaranteed rate of return that is one of the highest APYs on the market. However, there are early withdrawal penalties and you must have at least $2,500 to deposit.
Expert's Take
Most Discover CDs are not positioned as competitively as other banks in terms of rates or minimum deposit requirements. Consumers who are looking for a variety of terms for creating a CD ladder will have a lot to choose from, however, consumers trying to maximize their savings in a single CD may be better served elsewhere. If you already have a relationship with Discover, you’ll find opening and maintaining a CD account to be nearly seamless.
—Stephen Kates, CFP
Discover Bank CD Rates
| Term | APY |
|---|---|
3 Months
| 2.00%
|
6 Months
| 4.25%
|
9 Months
| 4.25%
|
12 Months
| 4.70%
|
18 Months
| 4.40%
|
24 Months
| 4.00%
|
30 Months
| 3.75%
|
36 Months
| 3.75%
|
48 Months
| 3.75%
|
60 Months
| 3.75%
|
84 Months
| 3.75%
|
120 Months
| 3.75%
|
Vio High Yield Online Certificate of Deposit
CD APY 84-month
2.75%
Minimum Deposit Requirement
$500
Interest Compounding Frequency
Daily
2.75%
$500
Daily
Editor's Take
Our experts chose Vio Bank’s High Yield Online CD because it’s an accessible option for savers who want to open a CD but don’t have a lot of extra cash to work with. The seven-year CD comes with a low minimum deposit requirement of just $500 and offers a decently competitive rate of 2.75% APY.
Pros & Cons
- Competitive CD rates
- CD terms ranging up to 10 years
- Low opening deposit
- Easy online account opening
- No add-on or bump-rate CD options
Details
CD interest compounds daily and is credited to your account on a monthly basis. Renewal is automatic unless you specify otherwise. There’s a 10-day grace period in which you can withdraw CD savings at maturity or roll the funds over to a new CD account with a different term. Early withdrawal penalties may apply. The penalty ranges from all of the interest earned for short-term CDs, up to 3% of the amount withdrawn plus $25 for longer-term CDs.
Summary: Best 7-Year CD Rates
Methodology
To create this list, Forbes Advisor considered 142 CD accounts across 84 financial institutions, including traditional banks, online banks and credit unions. For the star rating, we ranked each institution on 11 data points within the categories of APY, minimums, compound interest schedule, customer experience, digital experience, available terms and overall availability. We also analyzed and rated each institution by individual terms.
The weighting assigned to each category is as follows:
- APY: 50%
- Customer and digital experience: 20%
- Minimum deposit requirement: 12.5%
- Compound interest schedule: 7.5%
- Availability: 5%
- Available terms: 5%
CD accounts with higher APYs rose to the top of the list. Minimum deposit requirements of $10,000 or higher impacted scores negatively. Accounts with daily compounding interest schedules did better than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
Highest 7-Year CD Rates
The highest seven-year CD rates are currently near or above 4.00% APY. This is well above average. While the FDIC doesn’t publish average CD rates for seven-year CDs, the average rate for five-year CDs is 1.39% as of April 15, 2024.
What Is a 7-Year CD?
A seven-year CD—sometimes referred to as an 84-month CD—is a long-term CD that earns fixed interest, often at a higher rate than a savings account, in exchange for keeping your cash parked for seven years.
There are withdrawal penalties if you want to pull cash out of your account before the CD’s seven-year term is up. These penalties can eat into your interest earnings, so you shouldn’t open a seven-year CD unless you’re fairly sure you won’t need to access your funds for that long.
A seven-year CD is considered a safe way to invest cash over a long period of time because it is FDIC-insured. If a financial institution fails, the FDIC will cover your savings up to $250,000 per depositor, per account type. That said, returns on a seven-year CD may not be as high as what you can earn with some riskier investments over the long run.
How Does a 7-Year CD Work?
With a seven-year CD, you make a one-time deposit that’s at least as much as the minimum opening deposit requirement and agree to let that money sit in the account untouched for seven years. Minimum deposit requirements often range from $500 to $2,500 or more.
You’ll earn the advertised APY, which is fixed for the duration of the CD term. Depending on the terms and conditions of the CD, interest may compound daily, monthly, quarterly or annually. Sometimes you can withdraw interest from your account without penalty.
After seven years, a seven-year CD is considered mature, and your money can be withdrawn penalty-free or turned over into a new CD with a new APY. The maturity date of a CD is important to consider before setting aside money in a long-term CD. If you think you’ll need to withdraw your funds before this date you’ll be assessed an early withdrawal fee. This is usually the forfeiture of a portion of the interest you would otherwise earn on the CD.
Find The Best CD Rates Of 2024
Pros and Cons of 7-Year CDs
The term length of a seven-year CD is something to consider before opening an account. While it can be a good way to be disciplined about saving your money, it will come with penalties should you need to tap into your savings before the CD matures.
Pros
- High APYs compared to traditional savings accounts
- Fixed interest rate offers guaranteed returns
- FDIC-insured
- No monthly fees
Cons
- Might miss out on higher APYs offered by new CDs if interest rates rise
- Can’t access your funds for seven years without paying early withdrawal fees
- Returns might not outpace inflation
How To Open a 7-Year CD
To open a seven-year CD, start by choosing a financial institution to open an account with and reading the requirements to open a CD there. Depending on the institution and its policies, you may be able to open a CD online, or you may need to call or visit a branch to apply.
Opening a CD is similar to opening a savings account. You’ll need to provide personal identifying information like a photo ID, your name and address, as well as your Social Security number and date of birth. Some financial institutions only offer CDs to residents of specific areas or states. Make sure you are eligible to open a CD before beginning the process of opening an account.
After you’ve successfully opened your account, you’ll need to fund your CD. Check to see if there is a minimum deposit requirement. For seven-year CDs, this can be around $500 to $2,500. Many banks and credit unions don’t allow you to add funds to a CD once the account is open. Use a CD calculator to figure out how much you should invest to get the desired return you want.
You can fund a seven-year CD by transferring money from an external bank account or, in some cases, paying with a check or cash. Once your CD is open, you’ll begin earning interest on your funds according to the compounding schedule set out in the terms of your CD.
Alternatives to 7-Year CDs
While a seven-year CD is a great way to guarantee you’ll earn a return on your money, it isn’t for everyone. There are a few other options you can consider that offer comparable returns to a CD.
- High-yield savings account. This type of savings account offers the high returns of a CD but with the same access to cash as a standard savings account. You can withdraw and deposit funds at your leisure with no penalties, although some savings accounts may limit you to six free withdrawals per month. Many high-yield savings accounts offer APYs that are higher than the best seven-year CDs but keep in mind that these rates are variable and can change at any time.
- Money market account. This is another type of account offered by banks and credit unions. Money market accounts with a high yield can also be a good alternative to consider, especially because they typically come with a debit card and the ability to write checks from the account. You can withdraw money from your account more easily and at any time, although some MMAs limit you to six free withdrawals per month.
- Bonds. Government-issued bonds are another safe investment option because they shield your cash from inflation. They are guaranteed to earn interest as long as you hold a bond. You can purchase them directly from the U.S. Treasury in varying term lengths.
