Certificates of deposit made headlines throughout 2023. The high-interest rate environment offered some attractive earning potential for savers. However, most of that noise surrounded short-term options like six-month and one-year CDs, which offered APYs close to 6%. But with some experts saying now is the time to lock in a CD before rates fall, it’s time to look at longer-term CDs. If you need to lock money up for the next decade for retirement or college savings, consider a 10-year CD.
Not every bank offers CD terms this long -- a reflection of the fact that interest rates are cyclical and inevitably fall eventually. And usually, terms beyond five years offer less-than-desirable rates. But some banks are offering appealing rates for 10-year CDs. Here’s where to find them.
CNET’s picks for the best 10-year CD rates
| Bank | APY | Min. deposit | Early withdrawal penalty |
|---|---|---|---|
| Apple Federal Credit Union | 4% | $500 | 1,095 days of dividends |
| Credit Human | 4% | $500 | 1,095 days of dividends |
| Discover | 3.8% | $2,500 | 24 months of simple interest |
| EmigrantDirect | 2.75% | $1,000 | 180 days of interest |
| Vio Bank | 2.75% | $500 | 3% of the amount withdrawn and a $25 fee |
Apple Federal Credit Union
- APY APY = Annual Percentage Yield.
- 4%
- Min. deposit
- $500
- Early withdrawal penalty
- 1,095 days of dividends
You’ve likely never heard of Apple Federal Credit Union unless you live near one of its 21 branches in northern Virginia, but Apple FCU’s 10-year CD rate will catch your attention. The credit union is offering a competitive rate for its 10-year certificate. However, you’ll pay up to three years of interest if you withdraw from the CD before the 10-year term ends.
Becoming a member is fairly easy: You have to open a checking or savings account with the credit union, and then, you can open a certificate account.
You’ve likely never heard of Apple Federal Credit Union unless you live near one of its 21 branches in northern Virginia, but Apple FCU’s 10-year CD rate will catch your attention. The credit union is offering a competitive rate for its 10-year certificate. However, you’ll pay up to three years of interest if you withdraw from the CD before the 10-year term ends.
Becoming a member is fairly easy: You have to open a checking or savings account with the credit union, and then, you can open a certificate account.
Credit Human
- APY APY = Annual Percentage Yield.
- 4%
- Min. deposit
- $500
- Early withdrawal penalty
- 1,095 days of dividends
Credit Human currently ties with Apple’s 10-year CD rate. It has a lower minimum deposit requirement of $500. Membership requirements are a bit tougher here, as you’ll need to work for a certain employer, live within the credit union’s primary service areas in San Antonio or New Orleans, or check another box such as be serving in the military or studying in college. Credit Human has shared branches nationwide, but you can open an account online if you meet the membership requirements.
Credit Human currently ties with Apple’s 10-year CD rate. It has a lower minimum deposit requirement of $500. Membership requirements are a bit tougher here, as you’ll need to work for a certain employer, live within the credit union’s primary service areas in San Antonio or New Orleans, or check another box such as be serving in the military or studying in college. Credit Human has shared branches nationwide, but you can open an account online if you meet the membership requirements.
Discover
- APY APY = Annual Percentage Yield.
- 3.8%
- Min. deposit
- $2,500
- Early withdrawal penalty
- 24 months of simple interest
Discover is the most recognizable name on our list, and the online bank’s 10-year CD rate far above its big-bank peers. However, the bank’s high-yield savings account is currently paying a better yield of 4.35%, but it’s a variable rate. If you want the guaranteed rate for the next 10 years, though, you’ll need to meet a slightly higher minimum deposit requirement of $2,500.
You’ll also need to be comfortable opening the account online since Discover doesn’t have any physical branches.
Discover is the most recognizable name on our list, and the online bank’s 10-year CD rate far above its big-bank peers. However, the bank’s high-yield savings account is currently paying a better yield of 4.35%, but it’s a variable rate. If you want the guaranteed rate for the next 10 years, though, you’ll need to meet a slightly higher minimum deposit requirement of $2,500.
You’ll also need to be comfortable opening the account online since Discover doesn’t have any physical branches.
EmigrantDirect
- APY APY = Annual Percentage Yield.
- 2.75%
- Min. deposit
- $1,000
- Early withdrawal penalty
- 180 days of interest
EmigrantDirect’s 10-year CD is not the most competitive rate compared to other banks with higher APYs. However, if you already have an account with Emigrant, your CD balance can count toward the balance requirement for its checking account. Plus, Emigrant offers the lowest early withdrawal penalty at 180 days of interest.
EmigrantDirect’s 10-year CD is not the most competitive rate compared to other banks with higher APYs. However, if you already have an account with Emigrant, your CD balance can count toward the balance requirement for its checking account. Plus, Emigrant offers the lowest early withdrawal penalty at 180 days of interest.
Vio Bank
- APY APY = Annual Percentage Yield.
- 2.75%
- Min. deposit
- $500
- Early withdrawal penalty
- 3% of the amount withdrawn and a $25 fee
Vio Bank tops our list of the best money market accounts, and the online bank’s 10-year CD may be worth a look if you’re willing to lock your money away for an extended period of time. Vio Bank’s early withdrawal penalty structure is a bit different than most banks: You’ll pay 3% of the amount withdrawn, plus a $25 fee. So, if you withdraw $5,000 prior to maturity, you would pay $175. Vio Bank also compounds interest daily so you can grow your savings faster than other banks that compound interest monthly.
Vio Bank tops our list of the best money market accounts, and the online bank’s 10-year CD may be worth a look if you’re willing to lock your money away for an extended period of time. Vio Bank’s early withdrawal penalty structure is a bit different than most banks: You’ll pay 3% of the amount withdrawn, plus a $25 fee. So, if you withdraw $5,000 prior to maturity, you would pay $175. Vio Bank also compounds interest daily so you can grow your savings faster than other banks that compound interest monthly.
What is a 10-year CD?
A 10-year CD is a traditional CD that requires you to lock your savings up for a decade in exchange for a fixed APY. It’s not a common offering -- most banks and credit unions only offer CD terms up to five years. Since interest rates constantly move up and down, a 10-year CD term is a long time for banks to guarantee a fixed rate of return.
Like most traditional CDs, 10-year CDs have early withdrawal penalties. So make sure this term fits your savings timeline.
Alternatives to a 10-year CD
As you compare 10-year CDs, consider these other low-risk options for saving and growing your money.
High-yield savings accounts and money market accounts: The best high-yield savings accounts and money market accounts are paying significantly higher yields than 10-year CDs right now (with APYs over 4%). That means you’ll earn more in the short term. The downside is that savings and money market rates are variable. So, it’s tough to know when these rates could dip below the fixed rate of a CD.
CD laddering: Instead of parking all your money in one 10-year CD, a CD ladder can be a wiser option to spread your funds across multiple CD terms. For example, instead of depositing $30,000 in a 10-year CD, you might decide to put $10,000 in a one-year CD, $10,000 in a three-year CD, $5,000 in a five-year CD and $5,000 in a 10-year CD (or any combination you prefer). You’ll score two big benefits. First, short-term CDs are paying higher rates than 10-year CDs. Second, you’ll always have funds approaching maturity – instead of waiting for 2034 to roll around.
I Bonds: I bonds are another alternative to a 10-year CD. These bonds are sold by the US Treasury Department, and currently pay 5.27%, so their earning potential looks more promising in the short term. However, I bond rates adjust every six months, so you’re not going to earn that return forever. One other consideration is how much you’re looking to invest: You can purchase a maximum of $10,000 of I bonds online per year, along with another $5,000 with your tax refund. I bonds also come with an early withdrawal penalty -- three months of interest -- if you cash in the bond within the first five years.
Factors to consider before opening a 10-year CD
A lot can happen over the next 10 years, personally and economically. So it’s important to carefully consider these factors before locking up your money for a full decade.
Will the CD rate keep up with inflation? If your money is earning at a rate that is less than the rate of inflation, you’re losing your purchasing power. The Fed has historically aimed to keep inflation at 2%, but over the past three years, that has been a struggle. Over the next 10 years, the economy and inflation could improve, but it could also shift again since it’s a long time span.
What is the early withdrawal penalty? The longer a CD term is, the more you’ll pay if you need the money early. Two of the credit unions on our list impose very steep early withdrawal penalties of three years of interest. Additionally, find out whether you can withdraw a portion of the money or if you need to take out the entire balance. Some banks won’t allow partial withdrawals on CDs.
Can you accept greater risk? CDs are low-risk places for your money, but you might be able to score bigger rewards by accepting more risk. The stock market has historically offered much higher returns, but you’ll need to be able to deal with the ups and downs. If you’re close to retirement (or already done with work), a CD’s low risks can be very appealing.
FAQs
The best rate on a 10-year CD right now is 4% at Apple Federal Credit Union, based on the banks we track at CNET. You’ll need to become a member of the credit union to take advantage of the offering, but it’s simple: You just need to open a checking or savings account first. But it’s best to shop around because you may find better rates at a local credit union or online bank. Just make sure it’s insured by the FDIC or NCUA.
You won’t find any nationally available CDs that are paying 6% right now -- the best you’ll find is around 5.5%, based on banks we track at CNET. However, there are some small, lesser-known institutions that have increased their yields to 6%. For example, Travis Credit Union in California pays 6% APY on its four-month CD.
It depends on your investing timeline and your risk tolerance. Locking in a fixed rate of a CD comes with the benefit of knowing exactly how much you’ll earn -- and the current market includes some of the savings rates we’ve seen in years. However, the early withdrawal penalties on CDs mean you have to be comfortable with locking the money away for a set period of time or paying the penalty to access your money.
If you’re uncertain of whether you’ll need the money over 10 years, it’s best to consider other savings options that give more flexibility that let you access your money without any steep penalties.