FEATURED PARTNER OFFER
Discover® 9-Month Certificate of Deposit term
On Discover's Website
4.25%
$2,500
Best 10-Year CD Rates
We compared 100 CDs at 70 national banks and credit unions to find some of the best 10-year CDs available. Read on to explore annual percentage yields (APYs) and find out why we picked each account.
Annual percentage yields (APYs) and account details are accurate as of June 4, 2024.
Discover® Certificates of Deposit
On Discover's Website
3.75%
$2,500
Daily
Editor's Take
At 3.75%, Discover offers one of the highest APYs among 10-year CDs, and it also made our list of best online banks, with a good reputation for offering an excellent digital banking experience.
Read our full guide toDiscover Bank CD rates.
Pros & Cons
- One of the best 10-year CD rates
- No fees for opening or maintaining your CD account
- Early withdrawal penalty is 24 months of simple interest
- $2,500minimum deposit might be too much for some savers
- Same APY is available on Discover’s 3-year and 5-year CDs
Expert's Take
Most Discover CDs are not positioned as competitively as other banks in terms of rates or minimum deposit requirements. Consumers who are looking for a variety of terms for creating a CD ladder will have a lot to choose from, however, consumers trying to maximize their savings in a single CD may be better served elsewhere. If you already have a relationship with Discover, you’ll find opening and maintaining a CD account to be nearly seamless.
—Stephen Kates, CFP
Discover Bank CD Rates
Term | APY |
---|---|
3 Months | 2.00% |
6 Months | 4.25% |
9 Months | 4.25% |
12 Months | 4.70% |
18 Months | 4.40% |
24 Months | 4.00% |
30 Months | 3.75% |
36 Months | 3.75% |
48 Months | 3.75% |
60 Months | 3.75% |
84 Months | 3.75% |
120 Months | 3.75% |
EmigrantDirect Certificate of Deposit
On Bankrate.com's Website
2.75%
$1,000
Daily
Editor's Take
EmigrantDirect offers one of the highest APYs on a 10-year CD, and the minimum deposit is only $1,000. This CD could be a good choice for anyone with a small amount of savings who wants a guaranteed rate of yield and is willing to commit to a 10-year term.
EmigrantDirect is an online banking division of Emigrant Bank, a traditional New York-based savings bank that dates back to 1850.
Read our fullEmigrantDirect review.
Pros & Cons
- Competitive APY
- Relatively low minimum deposit
- Penalty for early withdrawal: 180 days interest
Details
Interest compounds daily and is credited monthly. You receive an automatic notification from the bank prior to the CD’s maturity date, when your CD will automatically renew. You have a 10-day grace period to close your account, and if you miss the window, you may pay early withdrawal penalties to close out.
MySavingsDirect Certificate of Deposit
On Bankrate.com's Website
Editor's Take
The APY is highly competitive among the best 10-year CDs, and the $1,000 minimum deposit should be manageable for many savers, even if you’re just getting started with saving and investing.
MySavingsDirect, like EmigrantDirect, is an online-only division of Emigrant Bank.
Read our fullMySavingsDirect review.
Pros & Cons
- High APY is one of the best 10-year CD rates
- $1,000 minimum deposit is reachable for many savers
- Early withdrawal penalty of 180 days of interest
Details
Account terms are similar to EmigrantDirect’s 10-year CD: Interest compounds daily and is credited to the account monthly. The bank will send you a written notice 14 days before the CD’s maturity date. You then have a 10-day grace period to close your account before it renews. In case of early withdrawal, the bank charges a penalty of 180 days of interest.
Bank of America Fixed Term Certificates of Deposit
On Bankrate.com's Website
0.03%
$1,000
Monthly
Editor's Take
Bank of America has a nationwide branch network, a highly rated mobile app and convenient digital banking tools like Erica®, a digital virtual assistant. The bank’s CD rates aren’t very favorable compared to other options on this list, but the minimum deposit is a relatively low $1,000. And if you already bank with BofA, you may like the idea of keeping all your accounts under one roof.
Read our full guide to Bank of America CD rates or check out our Bank of America review.
Pros & Cons
- May be a good option if you already have accounts with Bank of America
- Minimum depositis affordable for many savers
- Comparatively low APY
- Early withdrawal penalty is one year’s worth of interest
- Grace period is a comparatively short seven days
Details
Interest compounds and is credited to the account monthly. Once your CD matures, you have a seven-day grace period to close the account. Otherwise, it will automatically renew for another 10-year term. The penalty for early withdrawal is 365 days’ worth of interest.
Chase Bank Certificates of Deposit
On Bankrate.com's Website
0.01% to 2.50%
$1,000
Daily
Editor's Take
Chase is the largest bank in the U.S. and has a 10-year CD rate that’s much higher than competitors’ APYs. There’s just one catch: You must have a Chase personal checking account to qualify for the higher APY. Otherwise, you’ll earn just 0.01% interest on your balance.
Read our full guide toChase CD rates or check out ourChase Review.
Pros & Cons
- Competitive APY
- Ideal for current Chase customers
- Can withdraw interest at any time without penalty
- Chase personal checking account required for relationship rate
- Non-relationship APY is negligible
- Early withdrawal penalty is equal to one year of interest
Details
APYs may vary by ZIP code. The quoted rate is valid for the New York ZIP code of 10001. Chase CDs compound interest daily, and you get to choose how your interest is paid out: monthly, quarterly, semiannually, annually or at maturity. You can withdraw your interest at any time without penalty, which is a nice perk not offered by most options on this list. However, you’ll pay an early withdrawal penalty equal to 365 days’ worth of interest if you access your deposit before maturity.
Summary: Best 10-Year CD Rates
Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | APY | Minimum Deposit Requirement | Interest Compounding Frequency | Learn More CTA text | Learn more CTA below text | Learn More |
---|---|---|---|---|---|---|---|---|---|
Discover® Certificates of Deposit | 4.8 | 3.75% | $2,500 | Daily | Learn More | On Discover's Website | |||
EmigrantDirect Certificate of Deposit | 3.4 | 2.75% | $1,000 | Daily | Learn More | Read Our Full Review | |||
MySavingsDirect Certificate of Deposit | 3.3 | 2.50% | $1,000 | Daily | Learn More | Read Our Full Review | |||
Bank of America Fixed Term Certificates of Deposit | 2.5 | 0.03% | $1,000 | Monthly | Learn More | Read Our Full Review | |||
Chase Bank Certificates of Deposit | 2.3 | 0.01% to 2.50% | $1,000 | Daily | Learn More | Read Our Full Review |
Methodology
To create this list, Forbes Advisor analyzed 100 CD accounts across 70 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 10 data points within the categories of APY, minimums, compounding frequency, customer experience, digital experience, available terms and overall availability.
The following is the weighting assigned to each category for the star rating:
- APY: 50%
- Customer and digital experience: 20%
- Minimum deposit: 12.5%
- Compound interest schedule: 7.5%
- Availability: 5%
- Available terms: 5%
CD accounts with the highest APYs rose to the top of this list. Minimum deposit requirements of $10,000 or higher affected scores negatively. Accounts with daily compounding interest schedules were scored higher than those with monthly or quarterly schedules. To appear on this list, the account must be nationally available.
Average 10-Year CD Rates
The FDIC doesn’t publish average rates for 10-year CDs. It tracks rates for CD terms up to five years, which currently earn an average rate of 1.40% as of May 2024. Typically, you can expect 10-year CD rates to be similar to five-year rates.
In our research, we found that while some banks offer great rates for 10-year terms, most offer the highest rates for shorter terms, like one to two years. This may be because interest rates have been higher than usual in recent years, so banks are cautious to lock customers into their best rates for 10 years at a time.
What Is a 10-Year CD?
A 10-year CD is a type of savings account you deposit money into and leave alone for 120 months. For standard CDs, interest rates are usually locked in until your CD reaches maturity, meaning your CD will earn the same rate throughout its term (10 years, in this case). If you withdraw funds before the 10-year period is up, you’ll often pay an early withdrawal fee.
How Does a 10-Year CD Work?
A 10-year CD works like other CDs, just with a longer timeline. You deposit money you want to save and earn fixed interest on the balance for the duration of the term. Usually, interest is automatically credited back to the certificate to compound. When you open a 10-year CD, you’re agreeing to leave your money in the CD account for 120 months.
The amount of money you’ll need to open a 10-year CD depends on the financial institution. Many banks and credit unions require you to deposit at least $1,000 when you open the account, but this isn’t always the case. Online banks often have lower minimum deposit requirements and better APYs than traditional banks and credit unions. You generally can’t add more money to a CD account after opening it or withdraw funds from it before maturity without paying penalty fees, so it’s important to deposit the right amount.
Fixed interest rates are common for 10-year CDs, so you can easily calculate what you’ll earn.
When Should You Apply for a 10-Year CD
As a general rule, it’s best to apply for a 10-year CD when interest rates are high. This way, you can lock in a higher rate for the duration of the account. You’ll want to make sure a 10-year CD aligns with your financial goals and circ*mstances—and keep in mind that predicting interest rate movements isn’t always possible.
If you tie up your money for 10 years, will more attractive interest rates come along and give you buyer’s remorse? Although the Federal Reserve increased rates many times to combat inflation in 2022 and 2023, it is now more likely to cut them. Because consumer deposit rates typically fluctuate with the federal funds rate, this means CD rates are expected to fall—not increase.
Long-Term CD vs. Short-Term CD
What’s the difference between long-term and short-term CDs? Long-term CDs are those with terms of one year or longer, while short-term CDs have terms of less than one year.
The main advantage of long-term CDs is that they tend to come with higher interest rates, because you’re agreeing to leave your money untouched for a longer period of time.
Short-term CDs tend to have lower rates. However, they also offer greater flexibility, allowing you to access your money sooner. This can be helpful if you need to make a large purchase soon, or if you’re not comfortable having your money locked up for such a long time.
Who Should Apply for a 10-Year CD
If you’re looking for a long-term investment and won’t need to access your money for at least a decade, a 10-year CD could be a good option. Keep in mind that if you withdraw your money before the end of the term, you will usually have to pay a penalty.
If you think there’s a chance you might need to access your funds early, a 10-year CD probably isn’t the right choice for you. In this case, you may be better off with a shorter-term CD or high-yield savings account.
Pros and Cons of a 10-Year CD
Opening a 10-year CD might appeal to some savers more than others. Before you start shopping around for 10-year CD options, here are a few pros and cons to weigh.
Pros
- Higher APYs. You can often earn a higher rate with a 10-year CD compared to a shorter CD term, but this varies by bank.
- Fixed interest. Fixed CD rates let you predict how much interest you’ll earn in 10 years.
- Safety. A 10-year CD offers the security of FDIC or NCUA insurance and is low-risk compared to other, more volatile investments.
- CD laddering. Because 10 years is often the longest term available for standard certificates, you can use a 10-year CD as the last account to mature in your CD ladder.
Cons
- Might miss out on rising rates. If rates increase during your CD term, you’ll be locked into a lower APY for up to ten years, meaning you’ll miss out on interest.
- Steep early withdrawal penalties. Should you need to withdraw money from your 10-year CD early, you will be subject to early withdrawal penalties. Long-term CDs often have penalty fees equal to at least one year’s worth of interest.
- Lower returns than investing. You could earn better returns by investing in the stock market over a 10-year period instead of saving in a CD.
How To Choose the Best 10-Year CD
There are three main factors to consider as you shop around for the best 10-year CD:
- Interest rate: Obviously, the higher the rate, the better. But don’t just look at the advertised rate—read the fine print and understand any conditions that may apply.
- Early withdrawal fees: How much interest would you lose if you access your money early? Some banks have penalty fees equal to one year of interest or more, so it’s good to know this information ahead of time.
- Minimum deposit: 10-year CD deposits can range from $500 to $2,500 or more. These minimums may not be feasible for everyone, so be sure to find a bank that has requirements you can comfortably meet. That way, you don’t stretch your finances too thin.
Pro Tip |
---|
Pay attention to a CD’s compounding schedule. The best CDs compound interest daily, not monthly or quarterly. This means that interest is calculated every day, accounting for your certificate’s growth more regularly and using your current balance to determine earnings. Even if two CDs have identical rates, the one that compounds daily will earn the most interest. |
Are 10-Year CDs Worth It?
Whether a 10-year CD is worth it depends on the interest rate market. If a bank’s 10-year rates are lower than what you could earn with a two- or five-year CD, you might be better off choosing a shorter term. You’ll earn more interest per dollar and have access to your money sooner.
You should also consider if the term length works for your budget. Can you comfortably afford to leave your money untouched for a decade? If so, locking in a lucrative 10-year CD rate may make sense. Otherwise, it could put you in a tough spot where you have to pay early withdrawal penalties to access your funds.
Banks We Monitor
These financial institutions were included in our research for the best CD rates: ableBanking, Affinity Federal Credit Union, Ally Bank, American Express, Axos Bank, Apple Federal Credit Union, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, Bread Savings, BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Credit Union of Denver, Discover, Dollar Savings Direct, EmigrantDirect, Financial Partners Credit Union, Financial Resources Federal Credit Union, First National Bank of America, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Quontic, Quorum Federal Credit Union, Radius Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, U.S. Bank, USAA, USAlliance Federal Credit Union, Vio Bank, Virtual Bank, Wells Fargo and Truist.
Frequently Asked Questions (FAQs)
What is the current interest rate on a 10-year CD?
Current 10-year CD rates depend on the bank you choose and can change over time, but the best 10-year CD rates currently sit at around 2.00% to 3.00% APY or higher. The financial institutions listed in this guide have some of the best 10-year CD rates available today.
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. If the Fed decreases interest rates, as experts predict it will at some point in 2024, CD rates are likely to follow suit.
What are the current 10-year jumbo CD rates?
Current 10-year jumbo CD rates are typically similar to regular 10-year CD rates. Right now, the best 10-year jumbo CDs earn between 2.00% and 3.00% APY, but some earn more. Banks sometimes set jumbo CD rates slightly above regular CD rates to entice you to deposit more money. And as is the case with regular CDs, APYs for jumbo 10-year CDs can vary by ZIP code.
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