| Product | AVG | Top 1% |
|---|---|---|
| 6 Month CD | 3.73% | 5.31% |
| 1 Year CD | 2.63% | 5.30% |
| 2 Year CD | 1.58% | 4.85% |
In many cases, people choose longer term CDs as a way to hedge against possible inflation and like the safety of knowing their rate of return as they may be risk-averse. A ten-year CD provides piece of mind and security by providing a fixed rate for a set timeframe. When shopping around for a CD, it is very important to consider all of the factors, such as APY, minimum deposit requirements, and early withdrawal penalties. Although a 10-year CD locks up your money for an extended timeframe, the added benefit of that is that it forces you to not access your money so that it can grow through the compounding effect of interest. We've checked banks all across the country to find the best CDs, with the best 10-year CD yielding 3.40% and the nationwide average at 0.89% offered.
A 10-year CD is a deposit account with a fixed rate for a ten year time period. When you open a 10-year CD, you are lending your money to a bank or credit union and they are agreeing to pay you a certain APY for that term. The current nationwide average yield is 0.89%, with the best 10-year CD yield at 3.40%.
Once you deposit at least the required minimum opening deposit, your rate is locked and cannot be raised or lowered until the CD matures. This is ideal for individuals who tend to be risk-averse and prefer the safety of knowing their money is secure and earning a fixed rate.
Should you need to withdraw your money before the end of the term, you will most likely have to pay a substantial early withdrawal penalty. It is important to consider the term length before opening the CD account. At the end of the term, the CD will generally auto-renew for the same 10-year term length, but the rate may not be the same. It is important to be aware of when your term ends, as banks will only allow a short window of 5-7 days to cancel your CD without potentially incurring early withdrawal penalties.
The first step in selecting the best 10-year CD involves making sure that the bank or credit union you select is backed by FDIC or NCUA insurance. Secondly, you want to select the 10-year CD with the highest APY so that your money can grow as much as possible during the 10-year term. In the past, the longer the term the higher the yield, but this is not necessarily the case. Be sure to check rates across different terms to make sure you have the highest APY with the lowest term. Lastly, and maybe not so important, is the minimum required opening deposit. This may not be so important because, unless you are considering a jumbo CD, the minimum will generally be no more than a few thousand dollars. Lastly, if you feel you may not be able to commit for the full ten years, you want to understand exactly how much the early withdrawal penalty might be, as it may be substantial.
| Due to the early withdrawal penalty, this long term CD forces you to save your money and allow it time to work and grow. | If inflation is rising at a higher rate than the yield on the 10-year CD, the purchasing power of the money in the CD will decrease until the term is over. |
| The yield is higher than most conventional savings accounts, money market accounts and checking accounts. | In case funds need to be withdrawn before the end of the term, the early withdrawal penalty may be substantial. |
| As long as the bank or credit union is an FDIC or NCUA participating bank, your money is up to the limits outlined by those insurance programs. | If rates continue to rise, you do not get to adjust your rate higher. |
| Once you open and fund your account, your rate is fixed for the entire 10 year term. |
If you think you may need your money sooner than the commitment a 10-year CD requires, it may be beneficial to consider a shorter term CD such as a 5-year, 2-year or shorter CD that may offer2 comparable yields without the longer commitment.
A savings account is a type of interest-bearing, depositary account available at banks and credit unions. Banks typically pay a variable interest on deposits but may limit the number of withdrawals per month. Unlike a 10-year CD, which ties up your money, a personal savings account is highly liquid but offers low yields.
A checking account is a form of transactional account that can be opened at a bank, traditional or online, or a credit union. Checking accounts allows you to deposit funds and then withdraw from them to pay bills or make purchases. Keep in mind that the money in your checking account is money that you intend to use in the short term to meet your daily expenses. Unlike a 10-year CD, a checking account offers a low yield, with some banks offering no yields at all.
A high-yield savings account is a form of savings account that pays a much greater interest rate than other types of savings accounts. Rates of 3.53% and higher are now available from online banks. This is the one type of account that offers yields that are higher or similar to a 10-year CD, with the drawback being that yields are variable and can fluctuate.
A money market account (MMA) is a type of interest-bearing savings account that also allows you to use a debit card and write checks. MMAs generally limit the number of purchases and transfers to six per month, although ATM withdrawals are typically unrestricted. In general, MMAs offer lower, variable yields as compared to a 10-year CD.
Annual Percentage Yield (APY): The total interest you receive on money in a 10-year CD over the course of a year is expressed as an APY. The interest rate on an account is only one component of the APY, which also considers how frequently your interest compounds. The annual percentage yield (APY) of an account provides a more precise estimate of how much money your 10-year CD will earn.
Minimum Opening Deposit: This is the lowest amount of money you must deposit to open your 10-year CD account.
Interest: Interest is the money you earn from depositing your cash with a bank or credit union into your 10-year CD. When you deposit money with a bank, the bank borrows it from you and will lend a portion of it to clients or other banks, and the money they pay on your 10-year CD, is the interest.
Compound Interest: Compound interest is the interest you earn on interest you have already been paid. This may be demonstrated using simple math: if you have $100 and it generates 5% interest every year, you will have $105 at the end of the first year. You'll have $110.25 by the end of the second year, because you earned interest on the $105, and so on and so forth.
Early Withdrawal Penalty: An early withdrawal penalty is a fee banks may charge if you withdraw funds before your 10-year CD matures. Withdrawing your funds before the end of the term may cause you to forfeit a portion of your accrued interest and possibly some of your principal.
A 30-month CD can be advantageous as it forces you to leave your money alone for an extended period of time but at the same time, locks in your rate so you don't have to worry if rates drop during the 30-month term. Currently, the best 30-month CD rate is 4.58%. We've checked banks all across the country to find the best 30-month CDs offered by banks and credit unions for September 2025:
A one-month CD locks up your money for a very short period of time, which makes them a convenient alternative to traditional savings account and longer term CDs. We did our research and some of the top banks are offering APYs as high as 4.80%. Here are some of the best 1-Month CDs offered by banks and credit unions for September 2025:
A 6-year CD is a big commitment because you need to keep your money locked up for the entire 6-year term. On the positive side, you don't have to worry about fluctuations in rates, as you are guaranteed a fixed rate for the duration of the term. On the downside, you are not allowed to access your money unless you are willing to pay what may be a substantial early withdrawal penalty. We've looked at banks all across the country to find the best 6-year CDs offered by banks and credit unions. The best rate currently available for a 6-year CD is 4.35%. Here are some other options worth exploring:
Our editorial staff continually updates the information contained on our website. Our editorial staff has analyzed virtually all of the banks and credit unions that it follows, and it does weekly rate analysis for more than 250 prominent banks and credit unions. These institutions were chosen because they provide competitive APYs, low fees, and other factors we find important. These banks and credit unions often provide accounts that are available nationally. All of these banks are FDIC-insured, and all of these credit unions are NCUA-insured. Choosing an FDIC-insured bank or an NCUA-backed credit union assures that your money is protected as long as it stays within insurance limits and requirements.