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The Best 5-Year CD Rates in 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Five-year CDs offer some of the highest savings interest rates available. In exchange for keeping your money on deposit for half a decade, banks are willing to dole out higher returns on these long-term accounts. For example, in September, the average 1-year CD interest rate is 1.32% APY and the average 3-year CD rate is 1.73% APY, compared to the average 5-year CD rate of 2.08% APY.

Longer-term CDs do exist, but even their yields don’t often exceed 5-year CD rates these days. The highest yield on a CD of six or more years is 3.05% APY. 5-year CDs are also useful components to a CD ladder. When you build a ladder with CDs maturing a year apart, you can renew each one into a 5-year CD at maturity. This locks in the higher long-term rates for years to come.

To make sure you’re getting the best CD rates, MagnifyMoney has uncovered the highest 5-year CD rates available nationwide. Using data from DepositAccounts.com, similar to MagnifyMoney, a LendingTree owned company, we found that the best 5-year CD rates earned well above the national average interest rate for 5-year CDs. We also took minimum deposit requirements into consideration, to check for wider customer availability.

The 10 best 5-year CD rates in 2019

InstitutionAPYMinimum deposit amount
United States Senate Federal Credit Union3.05%$20,000
Signature Federal Credit Union3.00%$500
Affinity Plus Federal Credit Union3.00%$500
Premier America Credit Union3.00%$1,000
Hiway Federal Credit Union3.00%$25,000
State Department Federal Credit Union2.98%$500
Pen Air Federal Credit Union2.95%$500
First National Bank of America2.85%$1,000
Dover Federal Credit Union2.80%$25,000
Prime Alliance Bank2.75%$500

United States Federal Credit Union — 3.05% APY, $20,000 minimum deposit

Deposit at least $20,000 into a United States Federal Credit Union can get you an even better rate that the base level rate usually offered. Otherwise, you can open an account with just $1,000. The penalty for an early withdrawal will equal 360 days of dividends paid and accrued on the withdrawal.

USSFCU was created in 1935 by nine United States Senate employees, known then as United States Senate Employees Federal Credit Union until its name change in 1990. Membership is open to employees of Select Employee Groups, individuals sponsored by a family or household member, members of the American Consumer Council, Virginia Chapter (VACC) and members of the U.S. Capitol Historical Society (USCHS).

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on United States Senate Federal Credit Union’s secure website

NCUA Insured

Signature Federal Credit Union — 3.00% APY, $500 minimum deposit

Open a 5 Year Share Certificate from Signature Federal Credit Union with just $500 to start earning at its competitive rate. Just don’t make an early withdrawal unless you’re willing to part with half the term’s worth of interest. In this case, you’d lose 2.5 years’ worth of interest. Partial withdrawals are also not allowed, so you’d have to withdraw all your funds and close the account as well.

Signature FCU was founded in 1970. You may be eligible for Signature FCU membership if you’re a USPS employee, employee or member of select associations and organizations or referred by current members. You can also enroll in American Consumer Council for free.

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on Signature Federal Credit Union’s secure website

NCUA Insured

Affinity Plus Federal Credit Union — 3.00% APY, $500 minimum deposit

To start earning at Affinity Plus FCU’s competitive rate on a 60-month basic certificate, you’ll need an opening deposit of at least $500. Early withdrawals from this account may trigger a penalty of 365 days’ worth of dividends.

Your Affinity Plus FCU membership eligibility depends on the organization where you’re employed or volunteer, your school or place of residence, work or worship or through eligible/current members; you can also easily join by making a one-time $25 donation to the Affinity Plus Foundation. Affinity Plus Federal Credit Union was founded in 1930 and is currently headquartered in St. Paul, Minn.

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NCUA Insured

Premier America Credit Union — 3.00% APY, $1,000 minimum deposit

The 60-month certificate account from Premier America Credit Union earns its competitive rate on all balances of $1,000 and over. Dividends are compounded and paid monthly. Making an early withdrawal from this account will trigger a penalty of 180 days’ dividends, applied to the amount withdrawn.

Founded in 1957, Premier America Credit Union serves the Houston area. Family members of current members may also apply. You can also qualify for membership by joining Thousand Oaks Alliance for the Arts.

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NCUA Insured

Hiway Federal Credit Union — 3.00% APY, $25,000 minimum deposit

Typically, Hiway Federal Credit Union Certificates require a $500 minimum deposit, but you’ll need to deposit at least $25,000 to unlock the highest rate available on the 60-month certificate. The penalty for an early withdrawal from this account will equal 365 days’ worth of dividends.

Hiway Federal Credit Union was founded in 1931 to serve employees of the Minnesota Department of Transportation. Today, it is based in St. Paul and opens up membership to employees of qualifying companies or government agencies, members of Minnesota Recreation & Park Foundation, members of the Association of the U.S. Army and those who live, work, worship or attend school in the Metro Community Area. You may also qualify through a current member or household member.

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on Hiway Federal Credit Union’s secure website

NCUA Insured

State Department Federal Credit Union — 2.98% APY, $500 minimum deposit

To snag a State Department Federal Credit Union 60 months Share Certificate, you’ll need only $500 to deposit. Dividends are compounded daily, which grows your money more efficiently. Early withdrawals from the account will cost either 180 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance, whichever is smaller.

Of course, State Department FCU membership is open to employees of The U.S. Department of State. You may also be eligible through select organization membership, an immediate family member or the American Consumer Council. Groups may also apply for SDFCU membership.

Founded in 1935, SDFCU is headquartered in Alexandria, Va. It also offers its customers access to the CO-OP Shared Branch network for branches and ATMs.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Pen Air Federal Credit Union — 2.95% APY, $500 minimum deposit

Open a 60-month Pen Air Federal Credit Union Certificate Account with a $500 minimum deposit. The penalty for an early withdrawal will equal 180 days of dividends.

Founded in 1936, Pen Air is headquartered in Pensacola, Fla. and has 16 locations in Florida and Alabama. You qualify for Pen Air membership if you are active duty or retired military, a civil service employee, an employee at a partnering Select Employer Group or an immediate family member of eligible individuals. You can also become a member by joining the Navy-Marine Corps Relief Society, Inc.

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on Pen Air Federal Credit Union’s secure website

NCUA Insured

First National Bank of America — 2.85% APY, $1,000 minimum deposit

At the top of the list is First National Bank of America with its high-yield 60 Months CD. It requires a minimum opening deposit of $1,000.

First National Bank of America was first founded in 1955 as First National Bank of East Lansing, becoming the name we know today in 1998. The family-owned company is based in Michigan and has three branches in the state.

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on First National Bank Of America’s secure website

Member FDIC

Dover Federal Credit Union — 2.80% APY, $25,000 minimum to earn

With a $25,000 deposit, you can earn this competitive 5 Year CD rate from Dover Federal Credit Union. A higher deposit ($100,000 and over) will snag you a better rate, while a lower deposit will earn at a slightly lower rate. The penalty for an early withdrawal will equal 180 days dividends.

Dover Federal Credit Union was first chartered by Air Force and civilian workers at Dover Air Force Base in 1958. Generally, Dover FCU membership is open to military, Delaware families and over 450 Workplace Partners.

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on Dover Federal Credit Union’s secure website

NCUA Insured

Prime Alliance Bank — 2.75% APY, $500 minimum deposit

Among Prime Alliance Bank’s slate of competitive CD rates is its high-rate 60-month account. It requires $500 to get started. If you make a withdrawal from this account before maturity, Prime Alliance Bank can charge a penalty of three months’ interest on the amount withdrawn.

Founded in 2004, Prime Alliance Bank is located in Woods Cross, Utah.

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on Prime Alliance Bank’s secure website

Member FDIC

5-year CDs vs. savings accounts

If you’re simply looking for the highest rates available, 5-year CDs are going to seem much more appealing than a savings account. Even the best savings accounts can’t quite reach the 5-year CD rates you’ll find above. Plus, 5-year CDs lock in their rates at opening for the term of the investment, guaranteeing your rate of return. This can make for a great savings vehicle for conservative investors, who don’t want to ride the waves of an ever-changing economy.

Looking at the numbers, a $5,000 deposit into a 5-year CD at 3.25% APY would result in $882 of extra savings at maturity. Meanwhile, making a $5,000 deposit into one of the best savings accounts at 2.25% APY lands you with nearly $595 in savings after five years.

Savings accounts do provide easier access to your money, though. If you find yourself in a pinch suddenly, you can make a quick ACH transfer online or a withdrawal at a branch or ATM. Withdrawing from CDs isn’t as easy, especially when you account for the money you’ll lose to early withdrawal penalties. As you can see from the accounts above, early withdrawals from a 5-year CD can result in the loss of six months’ to two years’ worth of interest.

5-year CDs vs. other investment options

Investing in individual bonds — Treasury, municipal, or corporate — can be a solid alternative to saving with 5-year CDs. Non-Treasury bonds do have some risk by default as they don’t have the FDIC/NCUA insurance coverage limits. You can use these bonds to build a ladder similar to a CD ladder, so each bond matures a year or so apart.

An alternative to creating a bond ladder is to invest in a mutual fund or ETF of bonds. Unlike a ladder, however, the value of a bond mutual fund or ETF does fluctuate with interest rates. So when interest rates go up, the value of those investments will drop and vice versa.

The best way to maximize your 5-year CD investment

If you’re putting away money for five years, you’re going to want to make it worthwhile. For starters, CDs are best for those who have already maxed out their other savings accounts and have their emergency savings in a liquid savings account for easy access. They’re also better if you have a higher deposit to stash away. That will earn more interest in the long term for more tangible savings.

For example, placing $1,000 in a 5 year CD with a 3.25% APY will yield about $176 in savings by the end. Making a $10,000 deposit, on the other hand, lands you with a little over $1,764 in interest. That $176 is a good chunk of change, but you should make sure it’s enough to justify stashing away $1,000 now instead of perhaps waiting to make a larger deposit.

A great way to utilize a 5-year CD is to include it in a CD ladder. A 5-year, five-CD ladder is a standard and easy-to-track method of saving. You open five CDs, each maturing a year apart. Once a CD matures, you renew it as a new 5-year CD. Eventually, all your CDs will be 5-year accounts, maturing a year apart. You can also choose to withdraw your money whenever an account matures if you need to use those funds. This allows you to take advantage of the longer terms’ higher rates and bigger savings.

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Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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Best of, Earning Cashback

10 Best 5% Cash Back Credit Cards for September 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners. This site may be compensated through a credit card partnership.

Cash Back Credit Cards for 2017
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Credit card rewards programs come in so many varieties that it can be difficult to find the best cards for your spending habits. A basic, flat-rate card that earns you a certain percentage of cash back on all purchases is probably the simplest bet out there. Typically, rates range from 1-2%. Not shabby, especially if you use that card exclusively. But it’s not exactly something to write home about either.

There are even better cash back rewards offerings out there, some as high as 5%. But with these high-rewards cards, there’s almost always a catch, since most don’t offer 5% cash back across the board.

Every few months, the cards offer a few select shopping categories that can earn 5% cash back. Once those few months are up, the categories change. For example, a card could offer 5% cash back on groceries, gas and airfare from January to March, then switch those categories to wholesale stores, restaurants and gyms from April to June.

Additionally, there are often caps on how much of your spending can qualify for the 5% rewards rate. So if the cap is $1,500, for example, everything past that amount won’t qualify for the higher reward.

The key to maximizing these great cashback card offers is to find ones that offer cash in the categories you use the most. We dug around and found 10 cards that offer at least 5% cash back in some of the most common spending categories including gas, groceries and entertainment.

Access to bonus 5% Categories: Chase Freedom®

Chase Freedom®

The information related to Chase Freedom® has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Chase Freedom®

Regular Purchase APR
16.99% - 25.74% Variable
Annual fee
$0
Rewards Rate
Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.

How it works: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases. This translates to a maximum return of $75 per quarter on the 5% bonus category. You earn an unlimited 1% cash back on all other purchases outside of the bonus categories. You can also Earn a $150 Bonus after spending $500 on purchases in your first 3 months from account opening.

Earn 5% back in these categories through the end of 2019:

  • January to March 2019: Gas stations, tolls and drugstores
  • April to June 2019: Grocery stores and home improvement stores
  • July to September 2019: Gas stations and select streaming services
  • October to December 2019: Department stores, Chase Pay, Apple Pay

Another area where the Chase Freedom® shines is in how it allows customers to redeem their rewards. The cash you’ve earned converts into Chase Ultimate Rewards® points. Every $1 equals 100 points. You can easily use the cash and apply it to your monthly statement. Or you can convert them into points and use them on travel, gift cards, merchandise, and other services through the Chase Freedom® rewards dashboard.

They make it super simple to redeem points on the go through the Chase Freedom® Mobile app. While you’re shopping, you can pick the merchant from the list on of eligible merchants on your app (popular ones include Nike, Regal Cinemas, Lowe’s, Starbucks and Best Buy). Then tell the app how much cash you want to use. You’ll get a custom e-gift card that you can present at checkout to pay for your purchases.

chasefreedommobileapp

Plus, you can stack the points earned on your Chase Freedom® card with your points on other Chase rewards cards, like the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®. That just increases the spending power of your points.

The Fine Print: You can’t beat 5% cash back for your spending, especially with no annual fee. The downside is you have to remember to activate the category each quarter by subscribing to the program. But, if you set a reminder to do so, you can earn money without too much effort.

The original 5% cash back card: Discover it® Cash Back

Discover it® Cash Back

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Rates & Fees

Discover it® Cash Back

Regular APR
13.99% - 24.99% Variable
Annual fee
$0
Rewards Rate
5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate, 1% unlimited cash back on all other purchases - automatically.

How it works: With the Discover it® Cash Back you earn 5% cash back at different places each quarter like grocery stores, gas stations, Uber and Lyft, restaurants, or Amazon.com up to the quarterly maximum. The 5% is limited to $1500 spending per quarter, 1% after that. Activation is required.

Earn 5% cash back in these categories through the end of 2019:

  • January to March 2019: Grocery stores
  • April to June 2019: Gas stations, Uber and Lyft
  • July to September 2019: Restaurants and PayPal
  • October to December 2019: Amazon.com, Target, and Walmart.com

Using your rewards: Cash back from the Discover it® Cash Back is tracked in dollars and cents. You can immediately apply your cash back earnings to your bank account or as a statement credit toward your bill (note: your minimum payment will still be due). There’s also no minimum rewards value if you want to redeem them for charitable donations.

The fine print: You can only earn 5% cash back on up to $1,500 of spend each quarter you activate. Once you’ve hit that cap, you’ll earn 1% unlimited cash back automatically on all other purchases.. This adds up to a $75 maximum return on your rotating bonus categories. There is no annual fee.

Extra perks: As an Intro Offer, Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up and no limit to how much is matched.

Best for gas and restaurants in 2019: Visa® Platinum Rewards Credit Card from Nusenda Credit Union

Visa® Platinum Rewards Credit Card from Nusenda Credit Union

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Visa® Platinum Rewards Credit Card from Nusenda Credit Union

Regular Purchase APR
11.25% - 15.25% Variable
Annual fee
$0
Rewards Rate
Earn 3 bonus points, or 5% cash back, respectively, for every dollar they spend on purchases for movies, restaurants, and home improvements (up to $1,500 per quarter).

How it works: The Visa® Platinum Rewards Credit Card from Nusenda Credit Union lets you earn 3 bonus points, or 5% cash back, respectively, for every dollar they spend on purchases for movies, restaurants, and home improvements (up to $1,500 per quarter). Notably, it offers both gas and restaurants in two quarters. As a bonus New card holders earn 10,000 bonus points for $500 in purchases during first 90 days.

Earn 5% cash back in these categories through the end of 2019:

  • January to March: Groceries and gas expenses
  • April to June: Movies, restaurants and home improvement
  • July to September: Gas and education expenses
  • October to December: Restaurants, hotels and airfares

Using your rewards: This offer stands out as a decent companion card for maximizing cash back. When coupled with the Chase Freedom® or Discover it® Cash Back, you can maximize cash back in different areas during one quarter.

For an example, you can turn to the Visa® Platinum Rewards Credit Card from Nusenda Credit Union for 5% at restaurants in Q4. Then pull out the Discover it® Cash Back to make purchases at Amazon.com for another 5% the same quarter.

The fine print: Once again, you’ll need to monitor your spending habits to get the most cash back from a revolving category card. If you choose to use this card along with another one, a good practice would be labeling the cards in your wallet to ensure you use the right one for the right purchases in a given quarter.

One final caveat: While there is no annual fee, Nusenda is a credit union, so you will have to go through the process of applying for membership.

Pick your own cash back categories: U.S. Bank Cash+™ Visa Signature® Card

U.S. Bank Cash+™ Visa Signature® Card

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U.S. Bank Cash+™ Visa Signature® Card

Regular Purchase APR
15.99% - 25.49%* (Variable)
Annual fee
$0*
Rewards Rate
5% cash back on your first $2,000 in combined eligible net purchases ($100 per quarter) on two categories you choose. That adds up to $400 cash back!

The U.S. Bank Cash+™ Visa Signature® Card has a revolving cash back program that’s unique in comparison to the others above because you get options.

Earning cash back: You can earn 5% cash back in two categories of your choosing each quarter limited to the first $2,000 of spend. Then you can choose another category with no cap to earn 2% cash back. On all other purchases, you earn 1% cash back.

The categories for an unlimited 2% cash back (choose one each quarter) are:

  • Gas stations
  • Restaurants
  • Grocery stores

The categories for 5% cash back up to $2,000 (choose two each quarter) are:

  • Home utilities
  • Ground transportation
  • Select clothing stores
  • Cell phone providers
  • Electronics stores
  • Car rentals
  • Gyms/fitness centers
  • Fast food
  • Sporting goods stores
  • Department stores
  • Furniture stores
  • Movie theaters

Using your rewards: You can redeem cash back for gift cards, statement credit or a deposit into a U.S. bank savings, checking or money market account. The first time you redeem $100 in cash back in a single transaction, you get a $25 Cash+ Bonus.

The Fine Print: The same opt-in revolving category applies here, except you must also remember to choose your categories. There is no annual fee. The U.S. Bank Cash+™ Visa Signature® Card is another good example of a card you may want to couple with another that gives you higher cash back for necessities, i.e., groceries. But, for diverse spenders who can benefit from the 5% category options, the U.S. Bank Cash+™ Visa Signature® Card is worth considering.

Ideal for typical business expenses: SimplyCash® Plus Business Credit Card from American Express

How it works: The SimplyCash® Plus Business Credit Card from American Express* gives 5% cash back on wireless telephone services purchased directly from U.S. service providers and U.S. office supply stores, 3% cash back on the category of your choice from a list of eight, 1% cash back on other purchases. 5% and 3% apply to the first $50,000 in purchases per calendar year, then 1% applies thereafter. The eight categories are:**

  • Airfare purchased directly from airlines
  • Hotel rooms purchased directly from hotels
  • Car rentals purchased from select car rental companies
  • U.S. gas stations
  • U.S. restaurants
  • U.S. purchases for advertising in select media
  • U.S. purchases for shipping
  • U.S. computer hardware, software, and cloud computing purchases made directly from select providers

**Terms and conditions apply.

Earning cash back: You have to choose your 3% category within two months of signing. If you don’t choose one, the default is gas stations. The combined annual maximum spend for the 5% and 3% categories is $50,000. On all other purchases, you get 1% cash back.

Using your rewards: Cash back will appear as a credit automatically on your statement. The SimplyCash® Plus Business Credit Card from American Express card has no annual fee, so you’ll earn cash back with a generous annual maximum of $50,000 (see Rates & Fees).

The fine print: You must remember to choose your 3% cash back category every year. If you select one this year and forget to do so next year, you’ll be locked into the same 3% category for another 12 months until you make a switch. There is no annual fee.

*The information related to the SimplyCash® Plus Business Credit Card from American Express has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Note that this offer is no longer available.

5% cash back for the Amazon Prime enthusiast: Amazon Prime Rewards Visa® Signature Card

Amazon Prime Rewards Visa® Signature Card

The information related to Amazon Prime Rewards Visa® Signature Card has been collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Amazon Prime Rewards Visa® Signature Card

Regular Purchase APR
16.24% to 24.24% Variable
Annual fee
$0
Rewards Rate
Earn 5% back at Amazon.com and Whole Foods Market with eligible Prime membership, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases.

How it works: The Amazon Prime Rewards Visa® Signature Card is open to Amazon Prime Members, so it’s somewhat exclusive. Earn 5% back at Amazon.com and Whole Foods Market with eligible Prime membership, 2% back at restaurants, gas stations, and drugstores, and 1% back on all other purchases. Buying items on other merchant websites that have the Amazon Prime Rewards Visa® Signature Card payment option enabled will not earn you 5% cash back.

Using your rewards: The cash back you rack up will apply as a credit to your statement.

Do the math: If you’re not already an Amazon Prime Member, it’s probably not worth signing up to become one just for the card unless you intend to spend big bucks on the site or at Whole Foods Market. You need to spend $2,380 per year at Amazon.com for the 5% cash back to cover the $119 annual membership fee.

The fine print: The fine print of what you can and can’t buy to earn 5% is the only gotcha here. But, if you shop a lot at Whole Foods Market or on Amazon.com often and stick to the rules, you’ll see a nice return from this card. There’s no annual fee for the card, but you must be an Amazon Prime member, which costs $119 a year ($59 for students).

Good fit for the regular Target shopper: Target REDcard™ Credit Card

Target REDcard™ Credit Card

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Target REDcard™ Credit Card

Regular Purchase APR
25.15% Variable
Annual fee
$0
Rewards Rate
5% at Target & Target.com

How it works: For Target shoppers, there’s the Target REDcard™ Credit Card. It gives you a discount of 5% at Target & Target.com (minus any other discounts or promotions). Purchases that won’t earn 5% cash back include:

  • Prescriptions, over-the-counter items located behind the pharmacy counter and clinic services
  • Target Optical™ eye exams
  • Target gift cards and prepaid cards, Stockpile, Gift of College and lottery gift cards
  • Previous purchases
  • Certain restaurant merchants in Target stores, such as D’Amico & Sons Italian Kitchen and Pret A Manger
  • Target credit account payments, Target Debit Card cash back and cash advances on the Target Mastercard
  • Shipt membership fees
  • Gift wrap and shipping and handling charges on Target.com purchases
  • Wireless protection program purchases and deposits required by mobile carriers

Earning and using rewards: The program is pretty simple as far as how Target gives you money back. Your 5% will apply to eligible purchases in your shopping cart at checkout. In addition to 5% cash back, this program includes free shipping from Target.com and 30 extra days for returns.

The fine print: No red flags with the REDcard other than watching out for the purchases excluded from cash back listed above. For faithful Target shoppers, this no annual fee card with the 5% discount may be a no brainer.

Most straightforward 5% rewards card just for gas: Fort Knox Federal Credit Union Visa® Platinum Card

Fort Knox Federal Credit Union Visa® Platinum Card

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Fort Knox Federal Credit Union Visa® Platinum Card

Regular Purchase APR
11.50% - 18.00% Variable
Annual fee
$0
Rewards Rate
Unlimited 5% cash back on gas and 1% cash back on all retail purchases.

How it works: The Fort Knox Federal Credit Union Visa® Platinum Card makes our list with the most straightforward, no cap rewards program. You can Unlimited 5% cash back on gas and 1% cash back on all retail purchases.

Using your rewards: Cash back will appear on your statement as a credit.

The fine print: This rewards program is offered by a credit union in Kentucky. You’ll have to take a few extra steps to qualify for membership. If you don’t live in Kentucky or have family in Kentucky, membership is open to anyone that joins the American Consumer Council. There is no annual fee for the card, but you will need to become a member of the credit union.

6% cash back for the heavy grocery shopper: Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express

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Terms Apply | Rates & Fees

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Blue Cash Preferred® Card from American Express

Regular Purchase APR
14.99%-25.99% Variable
Intro Purchase APR
0% for 12 months
Intro BT APR
0% for 12 months
Annual fee
$95
Rewards Rate
NEW 6% Cash Back on select U.S. streaming subscriptions & 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater.

How it works: The Blue Cash Preferred® Card from American Express is our top pick for cardholders who want to maximize cash back on groceries. With this card, you get 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% on select U.S. streaming subscriptions, along with 3% cash back at U.S. gas stations and transit (e.g., taxis/rideshare, parking, tolls, trains, buses and more). Cardholders also earn – NEW 6% Cash Back on select U.S. streaming subscriptions & 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more.

Welcome offer: $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

Using cash back: Cash back builds as Rewards Dollars you can redeem for statement credit in increments of $25.

The fine print: There is an annual fee of $95 per year.

Only advantageous for military service members living on base: USAA® Cashback Rewards Plus American Express® Card

USAA®Cashback Rewards Plus American Express® Card

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on USAA Bank’s secure website

USAA®Cashback Rewards Plus American Express® Card

Regular Purchase APR
13.90% - 27.90% Variable
Annual fee
$0
Rewards Rate
Earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. Earn 2% on your first $3,000 on supermarket purchases per year. Unlimited 1% cash back on all other purchases.

How it works:USAA® Cashback Rewards Plus American Express® Card lets you earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. earn 2% on your first $3,000 on supermarket purchases per year. unlimited 1% cash back on all other purchases. USAA membership is available to active and former military and their eligible family members.

Earning cash back: You Earn 5% cash back on your first $3,000 in gas and military base purchases annually on these categories combined. Earn 2% on your first $3,000 on supermarket purchases per year. Unlimited 1% cash back on all other purchases. You can redeem cash back in increments of $1 through the USAA Rewards Service Center online or over the phone.

The fine print: The USAA® Cashback Rewards Plus American Express® Card is light on the fine print. Just remember, the 5% category yearly maximum is $3,000 for combined gas and military base purchases per year and not per quarter. There is no annual fee.

The key to earning from any cash back card

In closing, regardless of which cash back card you choose, be sure to pay off your bill in full each month. That’s one underlying trap of any card rewards program. If you carry a balance over time, adding interest into the equation means you may end up paying the credit card company more than what you’re making in cash back.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Benét J. Wilson
Benét J. Wilson |

Benét J. Wilson is a writer at MagnifyMoney. You can email Benét J. at [email protected]

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Best of

The Best Kasasa Checking Accounts in 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

A Kasasa checking account is a special type of banking product that is only available at certain credit unions and community banks. Kasasa checking accounts are free and offer various rewards, such as cash back or online shopping credits. Additionally, Kasasa checking accounts offer nationwide refunds on ATM withdrawal fees.

What is Kasasa checking account?

Developed by the Kasasa Corporation, a Texas-based financial services and marketing organization, Kasasa accounts help smaller banks compete against larger rivals by providing special features desired by consumers. In exchange for providing rewards and other benefits, Kasasa accounts require qualification. Typically, customers must enroll in online banking and/or electronic statements and undertake a certain number of monthly transactions, such as 12 debit card purchases and one or more ACH transactions.

While every Kasasa checking account comes with no monthly maintenance fees and national ATM fee rebates, the particulars of each individual bank or credit union’s account can differ. As banking is a competitive landscape, even among institutions that offer Kasasa accounts, rates and benefits will vary.

Here’s a look at the top Kasasa checking accounts, including both regionally available accounts and nationally available accounts. To select the best, we looked for Kasasa accounts that offered the highest APYs and generous rewards.

Top regionally available Kasasa checking accounts

InstitutionAvailabilityAPY

Kalsee Credit Union

Michigan4.25%

First Financial Bank

Arkansas and Mississippi4.07%

Peoples Bank

Louisiana4.01%

Bank of Frankewing

Tennessee4.00%

Liberty First Credit Union

Nebraska4.00%

Kalsee Credit Union Kasasa Cash+ Account

  • 4.25% APY
  • $0 minimum
  • $25,000 maximum
  • Available in the Kalamazoo, MI region

Kalsee Credit Union serves the Kalamazoo, MI region with a full menu of financial products. Kalsee offers four Kasasa accounts: Kasasa Cash+, Kasasa Cash, Kasasa Cash Back and Kasasa Saver. The credit union’s Kasasa Cash+ checking account earns 4.25% APY, the highest available rate we’ve found in our research.

To get the highest rate, you’ll have to open a Kasasa checking account, make 24 debit purchases per month, sign up for electronic account statements, log on to your account at least once per month, and receive direct deposits totaling at least $1,000 per month. You can earn the 4.25% APY on balances up to $25,000, while balances above this threshold earn 0.35% APY. In addition, Kalsee will refund up to $25 in ATM fees incurred at domestic ATMs.

Membership in Kalsee Credit Union is open to anyone who lives, works, or attends school in the Michigan counties of Allegan, Barry, Branch, Calhoun, Cass, Kalamazoo, St. Joseph, or Van Buren. Membership also extends to anyone receiving a retirement annuity, pension, social security, or similar retirement payment from private or government sources, and live in, or belong to a retirement organization located in Kalamazoo County or an adjacent county.

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on Kalsee Credit Union’s secure website

NCUA Insured

First Financial Bank Kasasa Cash Account

  • 4.07% APY
  • $50 minimum
  • $15,000 maximum
  • Available in Arkansas and Mississippi

First Financial Bank is an Arkansas-based, community bank that serves local markets in Arkansas and Mississippi. The bank currently offers three types of Kasasa accounts: Kasasa Cash, Kasasa Cash Back and Kasasa Tunes. These accounts all have minimum opening deposits of $50, no monthly service fees, and unlimited rebates of ATM fees nationwide.

Kasasa Cash currently pays a 4.07% APY on balances of up to $15,000, with the rate dropping to 4.07% APY on balances above $15,000. You must be enrolled in and log in to online banking, accept electronic statements and make at least 12 debit card purchases monthly or else your rate on your entire balance will drop to 0.05% APY and you won’t earn your ATM fee rebates.

Kasasa Cash Back eschews the high interest rate and instead rewards customers with a 3% rebate on debit card purchases of up to $250 per month, as long as you meet the same qualifications outlined above. Kasasa Tunes provides rebates of up to $7.50 each month in iTunes, Amazon or Google Play purchases, with a one-time sign-up bonus of $10 in rebates.

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on First Financial Bank (AR)’s secure website

Member FDIC

Peoples Bank Kasasa Cash Account

  • 4.01% APY
  • $100 minimum
  • $15,000 maximum
  • Available to citizens of Louisiana

Peoples Bank has four branches in and around the Baton Rouge, LA area. Peoples Bank offers a Kasasa Cash account that pays an attractive yield of 4.01% APY. There’s no monthly service fee associated with the account, and in addition to the high interest you receive up to $20 monthly in ATM fee refunds. To earn this APY, you must have at least 15 debit card purchases post and settle within the qualifying period, receive electronic bank statements, log on to online banking at least once a month, and have at least one ACH payment post to the account every month.

If you fail to meet those requirements, you still earn 0.08% APY on your deposits. And even customers who meet the requirements will only enjoy the high interest rate on balances up to $15,000. If you have a higher balance, the part greater than $15,000 will earn an APY of 0.31%.

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on Peoples Bank (New Roads, LA)’s secure website

Member FDIC

Bank of Frankewing Free Kasasa Cash

  • 4.00% APY
  • $50 minimum
  • $20,000 maximum
  • Available in the south-central Tennessee region

Established in the Tennessee town of Frankewing in 1920, this small community bank offers a Kasasa checking account that offers a great APY. If you meet the qualifications for the account, you’ll earn an APY of 4.00% on balances up to $20,000 (and an interest rate of 0.40% on the amount of the balance greater than $20,000). In addition to the high APY, you also enjoy reimbursements of third-party ATM fees with a limit of $20 per month (and $4.99 per transaction).

What are the requirements you need to meet in order to earn these rewards? Have at least one ACH credit or debit transaction each month, post and settle at least 12 debit card purchases per month, and be enrolled in and agree to receive electronic bank statements. If you don’t meet these qualifications, then the APY on your entire balance drops to 0.01% and you don’t receive the ATM reimbursements.

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on Bank Of Frankewing’s secure website

Member FDIC

Liberty First Credit Union Kasasa Cash Account

  • 4.00% APY
  • $50 minimum
  • $40,000 maximum
  • Available in eastern Nebraska

Liberty First Credit Union is the third largest credit union in the State of Nebraska. Liberty offers two types of Kasasa checking accounts: Kasasa Cash and Kasasa Tunes. Both accounts have no monthly service fees and refund up to $15 per month in nationwide ATM fees. Membership in Liberty First Credit Union is open to anyone who lives, works, worships or attends school in Lancaster or Seward County, and to employees of nearly 20 partner companies.

Kasasa Cash pays a high APY on balances of up to $40,000 if qualifying conditions are met, with balances above $40,000 earning a 0.15% APY. Every month, account holders must: be enrolled and receive electronic bank statements, log on to the online banking portal, settle at least 12 debit card purchases, and have at least one direct deposit ACH transfer post and settle. Account holders failing to meet these conditions still get a free checking account, but their APY drops to 0.05%.

The Kasasa Tunes account at Liberty First Credit Union has the same requirements as the Kasasa Cash account but pays out its rewards in the form of iTunes, Amazon or Google Play reimbursements, up to $5 monthly. In the first 30 days, the credit union offers a $10 music credit.

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on Liberty First Credit Union’s secure website

NCUA Insured

Top nationally available Kasasa checking accounts

InstitutionAvailabilityAPY

One American Bank

Nationwide3.50%

Dover Federal Credit Union

Nationwide3.25%

Main Street Bank (MI)

Nationwide3.00%

Security State Bank

Nationwide3.00%

First Security Bank & Trust

Nationwide2.51%

One American Bank Kasasa Cash Account

  • 3.50% APY
  • $50 minimum
  • $10,000 maximum
  • Available nationwide

Based in Sioux Falls, SD, One American Bank was founded 135 years ago, before South Dakota had achieved statehood. Today this small regional bank packs a big punch, offering a nationally available Kasasa Cash checking account that earns a decent 3.50% APY on balances up to $10,000.

To earn your Kasasa reward APY, for each monthly qualification cycle simply do the following: Make at least 12 debit card purchase transactions of at least $5.00 each that post and settle to your account; receive electronic bank statements, account notices and disclosures; and log in to online banking at least one time.

LEARN MORE Secured

on One American Bank’s secure website

Member FDIC

Dover Federal Credit Union Free Kasasa Cash Account

  • 3.25% APY
  • $0 minimum
  • $30,000 maximum
  • Available nationwide

Headquartered in Dover, DE, Dover Federal Credit Union is the second largest credit union in the State of Delaware and serves banking customers nationwide. Dover FCU’s Kasasa Cash checking account pays a 3.25% APY on balances up to $30,000 as long as customers receive electronic statements, log in to online banking and settle at least 12 debit card purchases monthly. This accounts also rebates up to $25 per month in nationwide ATM withdrawal fees.

Membership in Dover FCU is open to anyone who joins the Friends of Bombay Hook association. You may also join if you are an active duty member of the U.S military with duty locations in Delaware; a civilian employee of the federal government working in Kent County or Sussex County, Delaware; or a member of the Delaware National Guard. Employees of over 400 partner companies are also eligible for membership.

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on Dover Federal Credit Union’s secure website

NCUA Insured

Main Street Bank (MI) Kasasa Cash Checking Account

  • 3.00% APY
  • $0 minimum
  • $30,000 maximum
  • Available nationwide

This small regional bank is based in Bingham Farms, MI, just north of Detroit. Their Kasasa Cash Checking account earns a decent 3.00% APY on balances up to $30,000 and doesn’t require a minimum deposit to open. One unusual perk that makes this account especially useful is that you receive unlimited reimbursements of up to $4.00 per transaction, for nationwide ATM withdrawal fees.

Qualifying for the reward APY is easy. Just make at least one direct deposit, ACH payment, or bill pay transaction per monthly qualifying period; post at least 10 debit card purchases in the month; and receive electronic bank statements and log into your account at least once per monthly qualifying period.

LEARN MORE Secured

on Main Street Bank (MI)’s secure website

Member FDIC

Security State Bank Kasasa Cash Account

  • 3.00% APY
  • $0 minimum
  • $10,000 maximum
  • Available nationwide

Security State Bank is a full-service community bank located in Scott County, KS. Nevertheless, Security State’s Kasasa Cash checking account is available nationwide, and earns a respectable 3.00% APY. The Kasasa account has no minimum deposit to earn rewards, and a ceiling up to and including $10,000 to earn the APY. All you have to do is post 12 debit card purchases in each monthly qualification period, enrollment in electronic statements and log on to online banking every month to qualify for rewards.

LEARN MORE Secured

on Security State Bank (KS)’s secure website

Member FDIC

First Security Bank & Trust Kasasa Cash

  • 2.51% APY
  • $0 minimum
  • $50,000 maximum
  • Interest or cash back

First Security Bank & Trust has been serving the north central Iowa region for more than a century, and now they can serve you wherever you are with an attractive yield on a Kasasa Cash checking account. First Security offers a notably high maximum balance of $50,000 on which you may earn 2.51% APY. They’ll also refund up to $25 of out-of-network ATM withdrawal fees per month. To earn the reward rate, all you need to do is post at least one ACH transaction and 12 debit card purchases in each monthly qualifying period, in addition to receiving electronic statements and maintain a valid email address on record with the bank.

LEARN MORE Secured

on First Security Bank & Trust’s secure website

Member FDIC

The bottom line: Are Kasasa checking accounts worth it?

Kasasa accounts can offer great benefits to customers who qualify. If you’re already making the required transactions, such as 12 debit card purchases per month, Kasasa accounts are something of a no-brainer, as they offer rewards, carry no monthly fees and reimburse domestic ATM withdrawals.

However, for those who might have to stretch to qualify for a Kasasa account, it might pay to shop around, as there are plenty of competitor accounts that also charge no monthly fees. Each individual customer will have to weigh out the benefits of a high interest rate – or one of the other Kasasa rewards – against the transaction requirements.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here