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 April 7, 2020.
APYs are changing rapidly amid widespread uncertainty about the economy and financial markets. The Balance is monitoring rates and updating them accordingly.
Best 10-Year CDs
|Bank or Credit Union||APY||Minimum Deposit||Early Withdrawal Penalty|
|Discover Bank||1.80%||$2,500||24 months of interest|
|Vio Bank||1.70%||$500||3% of amount withdrawn + $25 fee|
|EmigrantDirect.com||1.20%||$1,000||6 months of interest|
|MySavingsDirect||1.20%||$1,000||6 months of interest|
|North American Savings Bank||1.01%||$1,000||6 months of interest|
Best 6- to 9-Year CDs
|Bank or Credit Union||APY||Minimum||Early Withdrawal Penalty|
|Air Force Federal Credit Union
|2.05%||$25,000||50% of interest foregone until maturity|
|Air Force Federal Credit Union
|2.00%||$12,500||50% of interest foregone until maturity|
|Air Force Federal Credit Union
|1.95%||$2,500||50% of interest foregone until maturity|
|Marcus by Goldman Sachs
|1.90%||$500||12 months of interest|
|1.80%||$2,500||24 months of interest|
|1.60%||$500||3% of amount withdrawn + $25 fee|
|Bank of Baroda
(5 years to less than 10 years)
|1.55%||$1,000||1% reduction in APR|
|1.55%||$500||18 months of interest|
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 can use up to 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 of a larger firm that offers a small menu of CDs and high-yield savings accounts. 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. And 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 one of several online subsidiaries of the industrious Emigrant Bank, which has been around since 1850. It makes sense to shop around, because sneakily enough, the rates are often very different between 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, but since there are no fees and no minimum account balances needed for this savings account, there’s no real reason not to.
MySavingsDirect is one of the online offspring of Emigrant Bank. 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.
With a name like North American Savings Bank, you’d expect this Kansas City, Missouri-based bank to offer competitive rates on CDs, and it does. If you have one or more checking accounts (you can be the primary or secondary account holder), even better. The higher your daily checking balance, the better rate you could get on a 10-year CD.
North American has been around since the 1920s, and today it has over $2 billion in assets and a full slate of products. Though if you want easy ATM access and are not local to the bank, it may not be right for you since it only operates 50 ATMs scattered near its headquarters. You must keep at least $50 in savings, too.
Air Force Federal Credit Union has a strong history (it’s been around since 1952) and a number of financial products ranging from checking and savings accounts to insurance and loans. CD terms range from six months to seven years, which may make membership worthwhile.
AFFCU has over 5,000 shared branches nationwide, with more than 47,000 members, many of whom are not in the military and are scattered across the globe. If you’re not in the military or affiliated with the eligible groups for membership, you can join the Airman Heritage Foundation for $25. You’ll also need $5 in savings to buy a CD.
Yep, you read that right—this bank is a direct subsidiary of the famed Goldman Sachs, itself a massive $228 billion institution. This part of the big bank launched in 2016, offering digital savings accounts and loans to the average Joe. Surprisingly, for a bank with such a hoity-toity reputation, it actually does offer very good rates on its financial products.
The Bank of Baroda probably isn’t a name you’ve heard of before. That’s because it’s a multinational bank originating in India, and its primary business is helping Indian expats send money back to their home country. Bank of Baroda only dips its toes in the deposit accounts world by offering business bank accounts and personal CDs.
KS StateBank is based out of Manhattan, Kansas, and has been around since 1969. It still operates chiefly in the state today, although it has one additional branch in Phoenix, Arizona. It offers a wide range of account types that can be opened online.
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're looking to earn interest on your money, but in an account more liquid than a CD, we partnered with QuinStreet to bring you the following savings and money market account offers.