1-Yr CDs Just Passed T-Bills. Beacon 5-Yr CD Leads.
5.24% APY sounds like a teaser. After two weeks of testing, we don't think it is. Here's why Beacon 5-Yr CD earns a slot on the floor — and where it falls short.
CDs · Beacon 5-Yr CD
As of January 19, 2026 · APY
What we liked
- Auto-renewal can be turned off in the customer portal
- 5.24% APY APY is real for the disclosed term
- Brokered version available with same headline rate
- Early-withdrawal penalty is industry-standard, no hidden fees
Watch outs
- Auto-renewal default — must opt out before maturity
- Brokered version requires existing brokerage account
- Early-withdrawal penalty applies even in financial hardship
Brokered CDs and direct CDs are quoting almost identically right now, which means the only thing that matters is whether your bank lets you call the CD or not. Beacon 5-Yr CD's 5.24% APY 1-year is callable. Read on.
How we tested
We opened a soft-pull control account at Beacon 5-Yr CD and walked the application flow for the 5.24% APY 12-month CD. The application disclosed: a $1,000 minimum, no maintenance fee, an early-withdrawal penalty of 3 months interest, and automatic renewal at the prevailing rate (which we don't love, but it's the industry standard). We did not actually fund. The disclosed APY held throughout.
The ladder we'd build with this CD
We don't recommend putting an entire emergency fund in a single CD. The ladder we'd build today: 25% in Beacon 5-Yr CD's 12-month at 5.24% APY, 25% in a 24-month at slightly less, 25% in a 36-month, and 25% kept liquid in HYSA at 4.92. That gives you a maturing rung every year while protecting against a rate shift.
The early-withdrawal math
Three months of interest at 5.24% APY on a $10,000 deposit is roughly $135. That's the real cost of breaking the CD early. If you think there's any chance you'll need the cash before maturity, the no-penalty CD at Beacon 5-Yr CD (currently 4.92) is the better trade — you give up some yield for the option to walk.
Compared to T-Bills
On a 12-month basis, Beacon 5-Yr CD's 5.24% APY CD is roughly tied with the auctioned T-Bill rate net-of-state-tax in most jurisdictions. In states with high income tax, the T-Bill wins because Treasury interest is state-tax-exempt. In low-tax states, the CD wins on liquidity (settlement is faster than rolling a Treasury auction).
What's next on the floor
Beacon 5-Yr CD's 5.24% APY stays on the certificate of deposit watchlist for the next two weeks. We'll re-pull rates Sunday night and post any meaningful change in the next Weekly Rate Floor. If you've used Beacon 5-Yr CD recently and your experience differed from what we wrote here, drop a comment below — we read everything that lands on the floor.
- Min-Joo C.Jan 20, 2026★★★★★4.0
Just refinanced through this lender. Closed in 23 days, exactly as the article describes. Worth knowing.
- Min-Joo C.Jan 20, 2026★★★★★4.0
Doctor-loan section nailed it. Beacon 5-Yr CD treated my 1099 income better than two banks I'd worked with previously.
- T. ParkJan 21, 2026
Got my CD opened in 15 minutes online. Funded next morning. No surprises.
- Hailey W.Jan 22, 2026
Just refinanced through this lender. Closed in 23 days, exactly as the article describes. Worth knowing.
- Rajiv N.Jan 23, 2026★★★★★5.0
Cash-out vs HELOC math worked out the way you described — HELOC won at our LTV, but barely.
- Min-Joo C.Jan 24, 2026★★★★★3.0
Article skips over the AVM waiver criteria. Mine got pulled despite a strong AVM read.
- Min-Joo C.Jan 25, 2026
Ran the same scenario through three lenders. Beacon 5-Yr CD was second, beaten by 0.05 from a credit union no one's heard of.
- Kelly H.Jan 25, 2026
I removed Beacon 5-Yr CD from my own list six weeks ago. Glad to see the takedown — saved me writing it.
Liked this read?
Subscribe to The Weekly Rate Floor — every Monday, the top three rates worth your time, the one to skip, and the loan window we think is closing.