If you’re looking to set aside money for longer than the standard 5-year CD offered at most banks and credit unions, a 10-year CD might be for you. These products have the longest term that’s readily available, so be prepared to lock in your money for a very long time. In a falling interest-rate environment, that can be appealing, since you’ll secure a good, fixed APY for years to come. Then again, a lot can happen to benchmark interest rates in 10 years.
There are only a handful of 10-year CDs available, and surprisingly, you’ll often get a better rate with CDs ranging from six to nine years in length, so we’ve included those in our list too. (It’s not clear why the shorter terms are often higher, though it may be because fewer banks compete in the 10-year CD market due to lower demand.)
Each week, we review over 150 banks and credit unions to find the best rates available nationwide. We track APYs daily but re-evaluate and re-order the list weekly. All accounts are available to the public and are insured by either the FDIC or NCUA. Here are the best CD rates for 10-year and 6- to 9-year terms as of September 21, 2021.
Best 10-Year CDs
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Apple Federal Credit Union||1.00%||$500||1,095 days of dividends|
|Discover Bank||0.80%||$2,500||24 months of interest|
|Vio Bank||0.70%||$500||3% of withdrawal + a $25 fee|
|EmigrantDirect.com (60–120 months)||0.45%||$1,000||6 months of interest|
|MySavingsDirect (60–120 months)||0.40%||$1,000||6 months of interest|
Best 6- to 9-Year CDs
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|SRP Federal Credit Union (7-year)||1.26%||$5,000||3 months of interest|
|Evansville Teachers Federal Credit Union (6-year)||1.15%||$1,000||6 months of interest with a $100 minimum|
|First National Bank of America (7-year)||1.15%||$1,000||18 months of interest|
|First National Bank of America (6-year)||1.10%||$1,000||18 months of interest|
|PenFed Credit Union (7-year)||1.10%||$1,000||If closed within first year, 12 months of interest. If closed after first year, 30% of interest.|
Apple Federal Credit Union was founded in 1956 and has branches in northern Virginia. But customers nationwide can access accounts and use shared locations (including over 53,000 ATMs) through shared branching. If you’re not already eligible to join the credit union, you can qualify by joining the nonprofit Northern Virginia Athletic Directors, Administrators, and Coaches. NVADACA, which supports student athletes, offers membership at $20 per year. To get started with Apple Federal Credit Union, you’ll need to open a savings account with at least $5.
With a popular credit card that dates back to 1985, Discover Bank is practically a household name in personal finance. The card issuer purchased Greenwood Trust Company, founded in 1911, and renamed it Discover Bank in 2000. Discover Bank’s only branch is still in Greenwood, Delaware, but customers have access to over 60,000 fee-free ATMs.
Discover Bank customers have access to a broad lineup of services, including online CDs, checking, savings, and money market accounts. Discover Bank also offers loans and credit cards.
Vio Bank is yet another online-only division that offers a small menu of CDs and high-yield savings accounts, and is a part of a larger firm. In this case its parent is MidFirst Bank, based out of Oklahoma City, Oklahoma, and it’s nothing to sneeze at. MidFirst Bank has almost $23 billion in assets, which lends a note of credibility and sustainability to this bank over smaller institutions. But remember, your money is insured by the FDIC (or NCUA, for credit unions) up to $250,000 whether you bank here or with the small credit union down the street.
This bank is actually owned by Emigrant Bank and serves as one of several online subsidiaries. It makes sense to shop around for rates if you’re interested in an Emigrant Bank subsidiary account, because sneakily enough, the rates may vary between these similar divisions. There’s really nothing else that separates them, however, aside from a few tweaks to the logo on the site.
In order to open a CD here, you’ll need to open a savings account first, and because there are no fees and no minimum account balances needed for this savings account, there’s no real reason not to.
MySavingsDirect is a subsidiary division of the industrious Emigrant Bank. Emigrant Bank itself has been around since 1850, long before the internet existed to allow MySavingsDirect to be created as a separate online offspring. Like Emigrant Bank’s other subsidiaries, you’ll need to be an existing customer to open a CD here, which you can do by first opening a savings account with a minimum deposit of at least $1.
There’s no minimum balance required to maintain the account, nor any fees for that account, so you won’t face any penalty for opening it just to complete the requirements.
SRP Federal Credit Union is based out of North Augusta, South Carolina, so people who live in certain areas of South Carolina and Georgia can join for free. But if you live elsewhere, you can join by first becoming a member of the Association of the United States Army (Greater Augusta-Fort Gordon Chapter). A two-year membership is $40. Members must also open a savings account, but maintaining a balance of just one penny is all that’s required.
Evansville Teachers Federal Credit Union launched in 1936 when a small group of teachers decided to pool their savings and offer loans. It began with a small field of membership including the Board of Education and Evansville College in Evansville before incorporating other organizations when it merged with Owensboro Public Schools Federal Credit Union in 1992. Today, its consumer offerings include checking, savings, and money market accounts, loans, and CDs with terms ranging from three months to six years.
To become a member, you’ll either need to be related to or live with a current member or work for or become a member of an organization within the credit union’s field of membership. For example, you can join the Mater Dei Friends and Alumni Association (MDFAA) with annual dues of just $5. You’ll also need to open a savings account and maintain a $5 deposit.
The grand-sounding First National Bank of America is actually based in small-town America. Specifically, it calls East Lansing, Michigan home, and it operates only two branches in the smaller towns of Grand Rapids and Traverse City. It’s relatively small as far as banks go, with only $1.6 billion in deposits. Still, you can easily open an account here online.
Pentagon Federal Credit Union, known as PenFed, was established in 1935. While its focus is on the department of defense, military, and military families, anyone can join. They offer a wide suite of financial services and products, including home, personal, and student loans.
PenFed offers its members access to 85,000 no-fee ATM machines and has 46 branches across the United States, Guam, and Puerto Rico.
PenFed serves over two million members and has $25 billion in assets.
What Is a 10-Year CD?
Most banks and credit unions don’t offer CDs for terms longer than five years. But a few banks do, allowing you to choose from CDs in one-year intervals all the way through a 10-year term.
Choosing a 10-year CD isn’t a light undertaking. You’re agreeing to set your money aside for an entire decade without withdrawing it or adding any more to it. It’s like a time capsule full of money that you send to your future self.
Who Is a 10-Year CD Best For?
First of all, if you’re going to open a 10-year CD, you should be extremely confident that you won’t need the money for 10 years. The early withdrawal penalty on a 10-year CD can be substantial and it may even eat into your principal (the money you deposited into the CD), especially if you need to withdraw the money early on in its term.
Ten-year CDs can be especially useful when there’s a high-interest rate environment on the cusp of shuffling back down into a low-interest-rate environment. In this scenario, you secure a high-income-producing account for many years to come.
However, it’s a risky gamble. The flip side is that if interest rates begin to increase, you’ll be stuck with a stinker of an account that yields lower rates than you could get elsewhere. And you’ll pay a stiff penalty for withdrawing your money, to boot. Benchmark interest rates dropped in March 2020 and, historically speaking, the U.S. is in a low-interest-rate environment right now.
Ten-year CDs are not the highest-paying certificates, despite what you might think. You can get a better rate with a shorter-term CD, which will tie up your money for less time. Conversely, you won’t lock in the rate for as many years.
What Are the Alternatives to a 10-Year CD?
With most CDs, you can earn a higher rate by choosing a longer-term CD. But because a 10-year CD is just about the maximum term length any bank will offer, you don’t really have that option here. Instead, the only thing you can compare it with is a shorter-term CD from another bank.
It’s tempting to think of a 10-year CD as a good option for a long-term investment, such as your retirement savings. Instead, most financial experts advise investing in the stock market. It’s more volatile, but in the long run, it has historically yielded higher returns.
Luckily, it’s possible to find CDs with a higher interest rate for a shorter period of time, which is usually a win-win. After all, even the best-laid plans sometimes go awry in a 10-year time span.
If you prefer instant account access, we have partnered with the following banks to bring you the high-yield savings and money market account offers displayed in the table.