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Best 10-year CD rates of July 2024
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BLUEPRINT
Updated 12:10 p.m. UTC July 5, 2024
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First National Bank of America is our best 10-year CD, earning a star rating of 5.0, thanks to high yields, good customer service scores and an affordable minimum deposit.
Annual Percentage Yields (APYs) and account details are current as of July 5, 2024.
Summary of the top 10-year CD rates
| INSTITUTION | CD NAME | STAR RATING | APY | MIN. DEPOSIT | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
 | First National Bank of America certificates of deposit | 5.0 | 4.00% | $1,000 | ||||||
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 | Apple Federal Credit Union share certificate | 4.79 | 3.81% | $500 | ||||||
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 | Credit Human share certificates | 4.78 | 4.05% | $500 | ||||||
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 | Discover® Certificates of Deposit | 4.68 | 3.75% | $2,500 | ||||||
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 | Vio Bank certificates of deposit | 3.98 | 2.75% | $500 | ||||||
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 | Chase relationship certificates of deposit | 3.47 | 2.50% | $1,000 | ||||||
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 | EmigrantDirect certificates of deposit | 3.33 | 2.75% | $1,000 | ||||||
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 | MySavingsDirect certificates of deposit | 3.10 | 2.50% | $1,000 | ||||||
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Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 140 CDs from 84+ financial institutions reviewed.
- 4 levels of fact checking.
- 50+ data points analyzed.
Compare the best 10-year CD rates
Apple Federal Credit Union share certificate
Credit Human share certificates
Chase relationship certificates of deposit
Methodology
The point of a CD is to pay you interest for your cash. To that end, we believe that a CD’s yield should be the most important factor when picking the best CDs available, which is why we gave it the biggest weight.
This is especially true with 10-year CDs, since there are so few competitive options available. In our rankings there was a tier that offered rates between 3.75% and 4.00%, and another tier that offered rates between 2.50% and 2.75%.
We believe that most will opt for a CD from the first tranche, but it’s valuable to provide a wide range of options.
That’s because there are other, secondary, factors to consider. These include customer experience, minimum deposit requirements, compound interest schedules, digital experience and availability.
Essentially, we want a well-regarded bank or credit union that makes it easy for new savers without a lot of money to open an account, for that account to compound interest daily, for banks to make it convenient for folks to bank online and with their phones and for you to be able to open your account from anywhere.
To get a full accounting of how we make picks, read our extensive savings methodology
Here’s how we think you should decide which CD to use:
- APY: 70%.
- Customer experience: 10%.
- Minimum deposit: 5%.
- Compound interest schedule: 5%.
- Digital experience: 5%.
- Availability: 5%.
How to find and choose the best 10-year CD rate
Choosing the highest rate is pretty much a no-brainer in most cases. Consider the difference APY can make on your bottom line if you invested $5,000 in a 10-year CD with monthly compounding interest.
| INTEREST EARNED ON 10-YEAR CDS | |
|---|---|
APY
| Interest earned at maturity
|
2.00%
| $1,095
|
3.00%
| $1,720
|
4.00%
| $2,400
|
4.20%
| $2,545
|
4.50%
| $2,765
|
It just pays to go with the highest interest rate.
Still, when interest rates between two CDs are close, such as between 4.50% and 4.20%, it makes sense to take other factors into account as a tiebreaker.
“Weigh factors such as minimum deposit requirements, fees and early withdrawal penalties,” said Michael Ashley Schulman, chief investor officer at Running Point. “Fees and penalties can easily water down the interest you earn.”
How to open a 10-year CD
Opening a 10-year CD is much like opening a savings or checking account. Here are the steps.
- Hunt for the best rate. A long-term investment deserves a rewarding yield. Find the top market rates and go from there. If you’re comfortable with the deposit requirement, jumbo CDs could also be worth considering.
- Get insurance. Make sure that the bank you are considering is federally insured. You can also use the FDIC’s BankFind tool and the NCUA’s Research a Credit Union tool to double-check.
- Pick your interest payout date(s). Interest payments may be available on a monthly, quarterly, semiannual or annual basis. You could also choose to reinvest your interest and only take the payout at the CD’s maturity.
- Open the account. You can typically open a CD online, at a branch or over the phone. If you’re not already a member or a customer, you’ll need to provide personal details such as your name, address, date of birth and Social Security number.
- Fund the CD. You can deposit the money via an online transfer, an over-the-phone transfer or, if you go in person, cash or check. You’ll need to meet or exceed any minimum deposit amount.
Quick tip: Don’t forget to have your ID ready if you’re becoming a customer or member of the institution for the first time.
Are long-term CD rates rising?
CD rates rose in 2022 and 2023, keeping pace with the Fed’s benchmark interest rate.
FDIC data shows that the average 5-year CD rate more than tripled, rising from 0.32% in April 2022 to 1.37% just 12 months later as the upper limit of the federal funds rate rose from 0.50% to 5.00% in the same time period.
However, there has been no rate change in 2024 to date. Wall Street even predicts a rate cut towards the end of the year, which would cause CD rates to drop.
Fortunately, you lock in a fixed interest rate when you set up a traditional CD.
Therefore, if you opened a 10-year CD before the Fed cuts the benchmark interest rate, your initial APY would remain in effect until the CD matures. In other words, your 10-year CD would escape any seesawing of interest rates for years to come.
Quick tip. While shorter-term CDs have higher yields, it can still make sense to include a long-term CD into your savings portfolio if you want to nab a high yield for a long time.
Is a 10-year CD worth it?
Among finance professionals, opinions of 10-year CDs are on the lower side.
“Choosing a 10-year CD may not be the best investment for everyone,” said Krisstin Petersmarck, investment advisor at Bridgeriver Advisors in Bloomfield Hills, Michigan. ‘While investing in a CD is considered low risk with a guaranteed interest rate, tying up your money for 10 years can be a major commitment. In the current environment, there are better interest rates available for CDs with a shorter duration.”
Ben McLaughlin, president of SaveBetter, agrees.
“A 10-year CD may not be the best for your bottom line,” he said. “With this type of product, your money is locked up for quite a long period of time, and you may miss out on more attractive interest rates.”
Learn more: When a CD makes sense for you
However, better rates of return typically come with more risk; managing that can require you to actively work and pay attention to your investments or pay someone else to do so. CDs allow you to invest your cash and leave it without worrying.
Because a 10-year CD has such a long term, you’ll earn more interest on it even if the rate is lower. For example, if you invested $10,000 in a CD that compounds monthly, here’s what you’d earn over different periods.
| APY | TERM | INTEREST EARNED AT MATURITY |
|---|---|---|
5%
| 1 year
| $500
|
4%
| 5 years
| $2,170
|
3%
| 10 years
| $3,430
|
In order to spread out your savings, consider utilizing a 10-year CD as part of a CD ladder strategy.
Who should open a 10-year CD account?
A 10-year CD is best for someone who wants to lock in a competitive rate for an extended period of time. As long as you stay within the FDIC or NCUA insurance limits, it's a low-risk way to save compared to market accounts.
And if you have a long-term savings goal, the early withdrawal penalty gives you an added incentive not to dip into those funds until the CD matures.
Use our CD calculator to help you plan your savings.
Is a CD right for your savings goal?
Typically, a CD is the highest-yielding savings option available to most folks. But their biggest downside is a lack of liquidity.
For instance, Bread Savings certificates of deposit currently offers a 5.25% APY on its one-year CD. That’s higher than pretty much any high-yield savings account you’ll find.
The downside, though, is that you can’t access your money in a CD until it matures, whereas a savings account is almost always available to you at any moment.
Therefore you need to be careful about what money you choose to save in which type of account.
Your best bet is to put money you’ll need in an emergency into a savings account. A CD can be best for:
- A specific savings goal timed to the CD term.
- Any extra savings you can do without.
- A conservative balance to a financial portfolio.
Other CD terms to consider
If you aren’t sold on sticking money in a CD for 10 years, you can pick from an assortment of shorter terms.
Quick tip: Pick a term corresponding to when you’ll need the money. If you are looking to buy a car in about a year, then grow your down payment in a 1-year CD.
Here are the best rates on some of the most popular CD terms:
- Best 3-month CD rates.
- Best 6-month CD rates.
- Best 9-month CD rates.
- Best 1-year CD rates.
- Best 18-month CD rates.
- Best 2-year CD rates.
- Best 3-year CD rates.
- Best 4-year CD rates.
- Best 5-year CD rates.
To decide which CD is right for you, answer these questions:
- Which CD term has the most attractive rates? Typically, the higher the rate and the shorter the term, the better.
- Could a CD help diversify your portfolio? A long-term, conservative investment could help stabilize your portfolio against sudden market movements.
- Would you lose track of the CD? Ten years is a long time and most CDs automatically renew if you don’t choose otherwise.
- Is it reasonable to say that you won’t need to make an early withdrawal? You may regret the investment if a big purchase comes up, such as a car or a house.
- What are the early withdrawal penalties? If something were to happen and you needed to cash it out, what fees would you incur? Some penalties can be pricey, costing all of the earned yield and eating into your principal.
Frequently asked questions (FAQs)
Depending on your financial goals and needs, a 10-year CD may or may not be a good investment. A 10-year CD can help diversify your portfolio as a staunch, financially conservative portion. Yet, it shouldn’t be your main savings fund or primary investment. It can lock in a relatively high interest rate for a decade, but you can’t touch the principal without paying an early withdrawal penalty.
A long-term CD is best for someone who can take a “set it and forget it” approach to saving money. You don’t want to regret your lack of access to the money before the CD matures, particularly if a financial opportunity or emergency comes up.
Assuming that all of your funds are protected by federal deposit insurance, they’re as risk-free as possible. You will receive your principal and interest at the end of the decade or, if the institution fails, you’ll receive your principal and whatever interest you earned up to that point.
However, there’s no free lunch. One risk you run with a 10-year CD, for instance, is that inflation will grow faster during your CD maturity, thereby reducing your real return. Similarly, you won’t be able to take advantage of rising interest rates because your cash is stuck in place.
CD rates have plateaued and are predicted to fall towards the end of 2024. In the June meeting, the Fed voted to keep the federal funds target range at 5.25 to 5.50%. But, Wall Street predicts that the Fed may cut the rates once this year, which would have a negative impact on CD yields.
The FDIC only tracks CD rates up to 60 months — as of June 17, 2024, they currently yield 1.43% on average. Our top 10-year CD picks all have yields near 4%.
It all depends on your needs and goals. If you’re considering a 10-year CD, then you’re looking for little risk. Stocks and bonds may earn more over a 10-year period, but are inherently more risky. For the funds that you don’t want to risk, consider a CD ladder, or simply keeping your funds in a high-yield savings account or money market account.
Normally, people open CDs at banks or credit unions. However, you may find the highest CD rate offered by an independent sales professional or at an investment firm, such as Charles Schwab certificates of deposit, E*TRADE Brokered certificates of deposit and Vanguard brokered certificates of deposit.
A brokered CD may pay an attractive yield, but CD brokers aren’t licensed, certified or regulated the same way that banks and credit unions are. Before you open one, be sure you understand how it’s insured (if at all) and any risks involved.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
