Interest rates on 10-year certificates of deposit (CDs) usually are higher than shorter-term CDs in periods of rising interest rates, and lower in periods of declining interest rates. Whether a 10-year CD is right for you depends on its annual percentage yield (APY) when compared to the best CD rates of other term lengths, as well as how long you can lock away your money.
In this article, we rank the best 10-year CDs based on current APYs, minimum balance requirements, customer service, and more. We also discuss the pros and cons of 10-year CDs and offer alternative options to help you make the best decision based on your specific needs.
Best 10-year CD rates of September 21, 2024
*APYs are current as of September 21, 2024 and are subject to change. Read our complete methodology here.
The best 10-year CD rates: Our editor’s top 5 picks*
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The 5 best 10-year CDs of September 2024
Discover Bank 10-year CD
| APY | 3.60% |
| Minimum opening deposit | $2,500 |
| Early withdrawal penalty | Up to 24 months’ simple interest |
Why we picked Discover Bank’s 10-year CD
Discover Bank offers a current APY of 3.60% on its 10-year CDs, the highest on our list, and does not include any account fees. In addition to its 10-year CD, it offers CDs with term lengths as short as 3 months with APYs starting at 2.00% and reaching as high as 4.50% for its 12-month CD.
However, Discover Bank has one of the highest minimum deposit requirements at $2,500. It also charges early withdrawal penalties of up to 24 months’ simple interest if you want to take your money out early.
Learn more: Read our Discover Bank review
Vio Bank 10-year CD
| APY | 2.75% |
| Minimum opening deposit | $500 |
| Early withdrawal penalty | Up to 3% of amount withdrawn, plus a $25 fee |
Why we picked Vio Bank’s 10-year CD
Vio Bank boasts the second-highest 10-year CD rate on our list with a 2.75% APY. Plus, it offers the lowest minimum deposit amount on our list at a $500 minimum opening deposit. In addition to its 10-year CD, it also offers CDs with lengths as short as 6 months with rates starting as high as 4.70% APY. You can also open a money market or high-yield savings account with Vio Bank.
That said, Vio Bank does charge an early withdrawal fee of 1% plus $25 for CDs with term lengths less than 12 months, and 3% plus $25 for CDs with terms greater than 12 months.
Learn more: Read our Vio Bank review
Bank of America 10-year CD
| APY | 0.03% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | Seven to 365 days of interest |
Why we picked Bank of America’s 10-year CD
Like many national banks with physical locations, Bank of America offers comparatively lower rates on its CDs and other savings account options when compared to online-first banks. However, Bank of America is one of the oldest and most reputable banks in the nation and boasts 3,800 branches and 15,000 ATMs across the country.
Plus, you can open checking accounts, credit cards, loans, investment accounts, and more. For this reason, even though its CD rates are low, it may be a good option if you need multiple account types as well as the ability to access physical locations.
Learn more: Read our Bank of America review
JPMorgan Chase 10-year CD
| APY | 0.01% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 90 to 365 days of interest |
Why we picked JP Morgan Chase’s 10-year CD
Like Bank of America, Chase Bank is one of the most reputable financial institutions in the country, with almost 5,000 branches and 15,000 ATMs nationwide. Also, its CD rates are relatively low compared to those of online-first or online-only banks. It advertises 0.01% APY on all of its CDs, regardless of length (though some markets may offer higher rates at local branches).
That said, you can open a multitude of financial accounts with Chase Bank, such as checking, savings, credit cards, loans, retirement, and more. When choosing between these large banks with a range of physical locations, it ultimately comes down to personal preference and the locations in relation to where you live.
Learn more: Read our Chase Bank review
PNC Bank 10-year CD
| APY | 0.01% |
| Minimum opening deposit | $1,000 |
| Early withdrawal penalty | 6 months’ interest |
Why we picked PNC Bank’s 10-year CD
PNC Bank offers CDs that range from 1 month to 10 years. However, the rate for all of its CDs, regardless of term length, is 0.01% APY. This is similar to other national banks with physical locations, such as Chase Bank and Bank of America. This means that there is no incentive to invest in a 10-year CD and lock away your money for that long if you can get the same rates on a 1-month CD with much shorter terms.
Learn more: Read our PNC Bank review
Pros & cons of a 10-year CD
10-year CDs offer a few advantages when compared to other CDs or savings accounts as well as a few downsides. Here are the reasons you should consider investing in a 10-year CD, including the reasons you should seek alternative options.
Pros
- FDIC-insured up to $250,000 per institution
- Higher APY in periods of rising interest rates
- Helps you lock away money and plan for the future
- You can use 10-year CDs as part of a laddering strategy
Cons
- Long-term length with early withdrawal penalties if you need your money sooner
- APY is lower in periods of declining interest rates versus shorter-term CDs
- Minimum investment amount required
How to choose the best 10-year CD
When choosing the best 10-year CD for you, it’s important to first consider the overall APY offered. From there, assess the minimum deposit amount as well as early withdrawal penalties. Here is what you should specifically consider when choosing the best 10-year CD:
- APY: A CD’s APY is the interest you earn on your money. The higher the APY the higher your expected return. Online-only or online-first banks typically offer the highest APY on 10-year CDs.
- Minimum deposit requirement: All 10-year CDs have a minimum deposit requirement. Often, the higher the APY the higher the minimum deposit, but this is not always the case. Be sure to understand how much you want to start investing and if you meet the minimum requirements for your chosen institution,
- Early withdrawal penalties: 10-year CDs also charge penalties for early withdrawal. Since the term length is so long, these penalties can be substantial if you need to access your money before the term length is up. Make sure you understand the cost of early withdrawal fees before making your decision.
10-year CD calculator: how to determine your earnings potential
To calculate your earnings from a CD, you’ll need to use the following formula: P(1+R/N)(NT) = A. Where “A” represents the value of your CD, including interest. “P” is equal to your principal balance or initial deposit. “R” represents your yearly interest rate―in this case, it would be your APY. “N” represents the compound frequency of your CD in a given year, and “T” represents the number of years until your CD’s maturity date. Let’s illustrate this with an example:
- Initial deposit “P” = $1,000
- APY “R” = 3.50%
- Monthly compound frequency “N” = 12
- Number of years until maturity “T” = 10
Our equation would turn out like this:
1,000 x ((1+(3.50/12)) x (12 x 5)) = $1,410.60
So, if you deposit $1,000 into a 10-year CD with an interest rate of 3.50% that compounds monthly, you could expect to withdraw about $1,411 at the end of the term.
Alternatives to 10-year CDs
If 10-year CDs don’t seem right for you, there are many alternatives that offer good APY rates with more flexibility on fees and when you can access your money. In addition to CDs with shorter term lengths, such as 6-month CDs, you can also consider the following options:
- High-yield savings accounts: Online banks offer high-yield savings accounts with APYs that rival even the best CDs. Current high-yield savings accounts may offer better rates than current 10-year CDs. You can also check out savings accounts from reputable banks with physical locations and compare them to 10-year CDs.
- MMAs: MMAs combine the benefits of a checking and savings account with high APY and easy access to your money. Current rates on MMAs may be higher than the APY of 10-year CDs. For more information, check out our article on the best MMAs.
Best CD rates for more terms
If a 10-year CD is too long a time horizon for you, or if it doesn’t offer attractive rates, then it may be a good idea to check out CDs of other term lengths. Because interest rates are expected to decline in the near future, many CDs with shorter terms have higher rates than their 10-year counterparts, giving you a better return with more liquidity.
For more information, check out our articles on the best overall CD rates and the best rates for 1- to 5-year CDs. However, it should be noted that there may be banks listed that we did not personally vet. These banks may have higher rates than what we included above but may not be available nationwide.
More CDs to consider:
Methodology
The Fortune Recommends™ team uses third-party data from industry leader Curinos, updated daily, to determine the best possible CD rates available for consumers right now. This is the most significant determining factor when deciding which financial corporation to feature in our best CD rates articles.
Learn more: read about our banking methodology
Frequently asked questions
Are CDs FDIC insured?
Yes, certificates of deposit (CDs) are protected by the Federal Deposit Insurance Corporation (FDIC). This federal agency insures all types of bank accounts held by its members, such as savings accounts, money market accounts, and CDs, up to $250,000 per customer per bank. This insurance secures your funds in the unlikely event of a bank failure. If you opt for a CD from a credit union, verify that it is insured by the National Credit Union Administration (NCUA), which functions similarly to the FDIC but specifically insures credit unions.
Are 10-year CDs worth it?
Whether or not 10-year CDs are worth it or not depends on current rates, early withdrawal penalties, and whether or not you can live without touching the money for a full decade. It’s possible that shorter CDs offer higher interest rates when compared to 10-year CDs. If this is the case, then it’s better to go with a shorter option to increase your return and avoid early withdrawal penalties if you need to access your money sooner than 10 years.
What is the best length of time for a CD?
This depends on current APYs and how long you’re willing to lock away your money. Typically, 5-year CDs have the highest rates. However, in periods of declining interest rates, CDs with terms of 12 months or less can offer the highest APY. Ultimately, it depends on which CD length offers the highest rates, taking into account how long your money remains illiquid.
How high will 10-year CD rates go?
It’s hard to say exactly how high 10-year CD rates will go because they’re influenced by various factors like the economy, market conditions, and federal funds rates. However, some believe the Fed will begin rate cuts in 2024, meaning that 10-year rates will begin to decline.
