The best CD term length will likely depend on how soon you plan to need the money and which term pays the highest rate. A shorter term gives you the opportunity to get a better APY if rates are up in a year or two. On the other hand, you could avoid lower rates with a 3-year or 5-year term if rates drop later. Many experts recommend CD laddering, which involves opening multiple CDs with different term lengths to take advantage of higher rates with longer terms, but also access some of your money earlier.