9 Best 10-Year CD Rates of August 2024
Updated July 30, 2024 at 4:01 am
Opening a certificate of deposit (CD) is a good way to safely store your money for a predetermined period. In return for not withdrawing your money during the specified term, a financial institution will reward you with an interest rate that’s higher than what you’d find in the average savings account.
While most CDs are offered in five-year terms or less, it is possible to find 10-year CDs. This is typically the longest period CDs are available. They offer longer-term security and slow but steady gains—especially if you can find the highest 10-year CD rates. Locking your money away for 10 years isn’t the right choice for everyone, but it can be a good strategy if you’re uncertain about the future of the market and want a stable income without risk. We’ve curated the best 10-year CD rates below to help you choose the product that’s right for you.
Our Methodology Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
•Associated fees
•ATM access
•Balance requirements
•Customer service
•Interest-earning potential
Our Picks - Best Overall: Apple Federal Credit Union
- Best Credit Union CD: Credit Human
- Best Big Bank CD: Discover Bank
- Best for CD Laddering: Dollar Bank
- Best for Simplicity: Vio Bank
- Best for Joint CDs: EmigrantDirect
- Best for Low Early Withdrawal Fees: BluPeak Credit Union
- Best Customer Service: MySavingsDirect
- Best for Relationship APYs: Chase Bank
Best 10-Year CD Rates of 2024
Best Overall
Apple Federal Credit Union
Vault Verified
Why We Chose It
Apple Federal Credit Union has one of the best 10-year CD interest rates in this list as well as a low minimum deposit. Paired with its mix of in-person and online support, this offering is hard to beat.
Pros
- High APY
- Mobile app access
- 21 branches for in-person service
Cons
- Must meet membership criteria to join
- Branches only located in Northern Virginia
- No 10-year jumbo option
Best Credit Union CD
Credit Human
Vault Verified
Why We Chose It
Credit Human is a credit union, but there are no location or employment requirements to join. Also, one unique feature of its CD is that you can use it as collateral for taking out a secured loan.
Pros
- Can use CD as security for loan
- Anyone can join with American Consumer Council membership
- 5,000 shared Credit Union branches nationwide
Cons
- Must open Primary Share Savings account
- Must maintain $5 minimum balance in savings
- No Sunday customer service
Best Big Bank CD
Discover Bank
Vault Verified
Why We Chose It
Sometimes, there’s comfort in choosing a big, national bank for your CD—and Discover Bank delivers that with its relatively high APY and 24/7 customer service. Plus, it offers a full spectrum of banking products, making it a great pick for your savings and checking accounts as well.
Pros
- No account fees
- 24/7 customer service
- All-in-one banking option
Cons
- No in-person locations
- High minimum deposit
- High early withdrawal penalty
Best for CD Laddering
Dollar Bank
Vault Verified
Why We Chose It
If you want to create a CD ladder, where you buy a new CD every year, Dollar Bank has plenty of term offerings to make that possible. Another helpful feature is the ability to withdraw interest after it’s been credited, which comes in handy if you want to use a CD as a means of passive income.
Pros
- Interest is withdrawable
- Higher rates possible for balances of $10,000 or $25,000
- Numerous terms for laddering
Cons
- Must live in Ohio, Pennsylvania, Virginia or Maryland
- High minimum deposit
- Complicated early withdrawal penalties
Best for Simplicity
Vio Bank
Vault Verified
Why We Chose It
Sometimes, you just want to open a CD and be done with it—and Vio Bank is great for that thanks to its easy-to-use website and simple application. Plus, if you need more help, Vio Bank also offers weekend customer service, which is rare among the banks we’ve chosen here.
Pros
- Low minimum deposit
- Joint account options
- Weekend customer service
Cons
- No in-person locations
- Early withdrawal penalty could be high depending on amount withdrawn
- Subject to auto-renewal
Best for Joint CDs
EmigrantDirect
Vault Verified
Why We Chose It
Joint accounts at EmigrantDirect are insured separately, meaning you can be insured for up to $500,000 in assets jointly instead of the typical $250,000. You can even convert an individual account into a joint account after you’ve created it, which could be useful if you get married during your 10-year term.
Pros
- Notification prior to maturity
- Low early withdrawal penalty
- Interest is withdrawable
Cons
- Must open American Dream Savings Account first
- Checks are only an option for the initial deposit
- Website is outdated
Best for Low Early Withdrawal Fees
BluPeak Credit Union
Vault Verified
Why We Chose It
If you fear you might have to withdraw your funds early and don’t want to pay big fees, BluPeak Credit Union’s penalty of 180 days of interest is one of the lowest on this list. You can also withdraw interest throughout the term if you don’t want to keep it in the account.
Pros
- Anyone can join with a KPBS membership
- Add-on certificate options
- Interest is withdrawable
Cons
- Need to pay for KPBS membership after first year
- Higher deposit tiers don’t offer higher APYs
- No Sunday customer service
Best Customer Service
MySavingsDirect
Vault Verified
Why We Chose It
MySavingsDirect is available seven days a week from 8 a.m. to 11:30 p.m. ET, giving you plenty of time to get answers to your 10-year CD questions. It also sends you a letter a full 14 days before your CD matures so you have plenty of time to decide what next steps you want to take.
Pros
- Written notice of CD maturity sent 14 days prior
- Interest is withdrawable to MySavings Account
- Low early withdrawal penalty
Cons
- Must open MySavings Account first
- Only initial deposit can be made with a check
- Website is outdated
Best for Relationship APYs
Chase Bank
Vault Verified
Why We Chose It
If you have an existing checking account with Chase Bank, you’ll have access to much higher 10-year interest rates than other customers. Another perk you don’t see often is that the early withdrawal penalty is capped at the amount of interest you’ve earned, so you won’t lose part of your principal if you withdraw early in the term.
Pros
- Can choose when interest is paid
- Early withdrawal penalty isn’t more than you’ve earned
- Good number of terms for laddering
Cons
- Higher deposit tiers don’t offer higher APYs
- Must have Chase personal checking account to earn relationship APYs
- Need to schedule meeting to open CD over $1,000,000
10-year Certificate of Deposit Overview
Before opening a 10-year CD, it’s important to learn everything you can about the product. Here’s a quick summary of what 10-year CDs are and how they work so you can decide if it’s the right choice for you.
What Is a 10-Year CD?
A 10-year CD is a savings account where you lock in your initial deposit for 120 months. In most cases, you can’t add or withdraw funds during this time (unless you pay a penalty). In exchange for keeping your money locked in, a bank or credit union offers you a fixed interest rate that’s typically higher than what you’d see in a regular savings account. While CDs are available in many different terms, 10 years is typically the highest most banks go—and even then, not many offer a 10-year term.
Many people value CDs because they’re a safe investment. You’re guaranteed to get a fixed rate of return throughout the full 10 years—no matter what’s happening in the rest of the market. Additionally, your money is insured up to $250,000 by either the Federal Deposit Insurance Corporation (FDIC) if you have it at a bank or the National Credit Union Administration (NCUA) if you have it at a credit union.
How Do 10-Year CDs Work?
Banks and credit unions assess their financial stability, offerings from other institutions as well as current market conditions to determine what interest rates to offer on 10-year CDs. For example, when the federal funds rate increases, so does the interest rate typically offered by these institutions. Likewise, when it falls, so do new CD rates. You’ll typically find the best 10-year CD rates when the economy is on an upswing.
After reviewing all available rates and choosing the institution you prefer, you can submit an application to open your CD. This will typically require you to provide proof of identity, like your driver’s license or Social Security number. After your CD is open, you’ll make your deposit and then let the money sit for the full 120 months. Should you need to withdraw all or part of your money early, you’ll have to pay an early withdrawal penalty, usually in the form of several months of interest. Keep in mind that if you withdraw your money before you’ve earned the stated penalty interest, you may lose part of your principal.
Who Should Get a 10-Year CD?
A 10-year CD can be a good option for anyone who has savings that they won’t need to touch for at least 120 months. An example of this might be someone nearing retirement who wants to have a stable investment to cash in when they finally quit their job. You might also consider opening up a 10-year CD for your child to cash in when they come of age. While you can’t put the CD in their name, you may be able to open a custodial account that you manage on their behalf until they’re old enough.
A 10-year CD is also good for people who want to be hands-off with their investments. A CD just takes a one-time deposit, then you can forget about it until the end of the term. During that time, your money will continue to earn interest with any action from you. That said, a 10-year will not typically earn as much as a stock portfolio during the same period, so if maximizing your earnings is most important to you, you may want to look into other options.
Pros and Cons of 10-Year CDs
Like all forms of investing, 10-year CDs have several pros and cons. Many people like them because they’re a reliable and safe investment you can hold for many years without touching. However, many people don’t like them because they don’t offer the best returns and have penalties for withdrawing money.
Pros of 10-Year CDs
- Guaranteed long-term investment. You know upfront exactly how much you’ll have earned by the end of the term.
- Provides stability in an unstable market. If the stock market crashes or interest rates drop, your CD continues to earn the APY you chose when opening your account.
- Helps you diversify your portfolio. CDs are a good fallback to have if your portfolio is comprised of other high-risk investments.
Cons of 10-Year CDs
- Money is locked away for a long time. 120 months is a long time to keep money in savings—especially if you might need it for a down payment for a home or car down the line.
- You might miss out on higher interest rates. There’s always a chance rates will rise over 10 years, meaning you might miss out on higher returns.
- Limited returns compared to other long-term investments. Compared to stocks and bonds, CDs don’t have the same earning power.
What to Consider When Choosing a 10-Year CD
When choosing a 10-year CD, there’s more to it than just picking the product with the highest 10-year CD rates. You’ll also want to consider minimum balance requirements, whether or not interest is withdrawable, early withdrawal penalties and automatic renewal policies.
APY
The best 10-year CD rates will earn you the most money, so this should be a top consideration when choosing an account. The top 10-year CD rates we found in our research are currently 4% annual percentage yield (APY), which is far higher than the 1.37% national average CD rate across all terms. If you were to invest $10,000 in a 4% APY CD for 10 years, you’d earn a total of $4,802.44 in interest. With the same term and initial deposit, those earnings drop to only $2,189.94 with a 2% APY.
Minimum Balance Requirements
Most CDs have a minimum balance required to open an account. You need to make sure you can easily meet this requirement without pulling too much money from your savings. Typically, $500 is the lowest minimum balance requirement banks offer, but they may be as high as $2,500 for some accounts. If you’re planning on depositing a large sum like $10,000 or more, however, this isn’t a concern for you.
Ability to Withdraw Interest
Ten years is a long time to keep your money parked in one place. Having the ability to withdraw interest gives you access to some cash if you need it without disrupting your investment. Some banks let you withdraw the interest you’ve accumulated on the account without penalty. Check the terms of your agreement, as some institutions allow you to withdraw interest as soon as it’s deposited, while others might make you wait for quarterly or annual withdrawals. Keep in mind that withdrawing your interest reduces your APY, meaning you won’t earn as much by the end of the term.
Early Withdrawal Penalties
No one expects to withdraw money early from a CD, but emergencies happen. On a lighter note, you might also want to withdraw your money if you’ve found a better investment opportunity. Choosing an institution with a low early withdrawal penalty can reduce your damages and help you come away with more money. Most banks charge a set number of days of interest earned. But be careful—if you withdraw your funds before you’ve earned that amount of interest, your bank will keep part of your principal to make up for it. Ideally, look for a bank that doesn’t charge you more interest than you’ve already earned.
Automatic Renewal Policies
Ten-year CDs typically renew at the end of the term. Since 10 years is already a long term, you probably don’t want to lock your money away again for such a long time. Check the institution’s renewal policy to see how long you have to withdraw funds after the CD matures. Most allow you a grace period of 10 days. Also, check the institution’s notification policies. It’s preferable to find a bank that will send you a letter or email well in advance of the CD’s maturity so you don’t forget about it.
Frequently Asked Questions
Are 10-Year CDs Insured?
Yes, CDs from legit banks or credit unions are insured for up to $250,000. The Federal Deposit Insurance Corporation (FDIC) insures bank deposits, while the National Credit Union Administration (NCUA) insures credit union deposits. This is an aggregate amount that applies to all accounts you have at the same bank. Some institutions may take out additional insurance to up the limit, so check their specific policies to learn more.
What Are Some Alternatives to a 10-Year CD?
If you’d like to have more liquidity with your money, consider a high-yield savings account or money market account. These often have high APYs and don’t restrict withdrawals or deposits. U.S. Treasury I-series bonds can also be a safe alternative—but because they have a variable interest rate, you might end up earning less. Finally, consider dividend stocks if you want the chance to earn the highest returns.
What Are the Disadvantages of a Longer-Term CD?
The biggest disadvantage of a 10-year CD is that your money is locked into whatever rate you had at the start of the term. Over time, rates might go up, but you won’t be able to take advantage of them unless you pay an early withdrawal penalty, close your account and open a new one. Long-term CDs also typically don’t keep up with inflation, meaning you might lose money when compared to cost of living increases.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
