Compared to savings accounts and short-term time deposits, 10-year CDs offer more competitive interest rates.

They’re also virtually risk-free. Once your account matures, you’ll earn a specific rate of return.

But a 10-year CD isn’t a good fit for every saver. Before buying one, consider why you should lock up your savings for a decade. Here are some great 10-year CD deals:

Top nationally available 10-year CDs
Institution APY Minimum deposit
Apple Federal Credit Union 3.00% $500
Discover Bank 2.70% $2,500
Elements Financial 2.30% $1,000
MySavingsDirect 1.65% $1,000
LegacyTexas Bank 1.10% $1,000

Today’s top nationally available 10-year CDs pay 3 percent APY. This may be a good place to invest for long-term financial goals, like funding your child’s college education or leaving him money to use post-graduation.

Finding the best 10-year CD rates

Since few banks and credit unions offer 10-year CDs, finding the best rates may be challenging.

Compare offers with deposits backed by the federal government. Look closely at deals from online financial institutions.

Remember, few institutions offer certificates in this term, but you may find a better deal in your own search.

Account details

  • Apple Federal Credit Union is headquartered in Fairfax, Virginia. Founded in 1956, it serves customers throughout the country. The credit union earned four out of five stars in Bankrate’s latest review of its financial health.
  • Discover Bank is an internet-only bank headquartered in Greenwood, Delaware. Until August 2000, it was known as the Greenwood Trust Company, which was incorporated in 1911. The bank earned five out of five stars in Bankrate’s latest review of its financial health.
  • Elements Financial has around 90,000 members and serves consumers in 50 different countries. The credit union, which is based in Indiana, earned four out of five stars in Bankrate’s latest review of its financial health.
  • MySavingsDirect is an online division of Emigrant Bank, a New York-based institution founded in 1850. Customers who purchase MyTerm CDs can choose a term length between 60 and 120 months. Emigrant Bank earned four out of five stars in Bankrate’s latest review of its financial health.
  • LegacyTexas Bank is headquartered in Plano, Texas. In 2015, it merged with another North Texas-based financial institution called ViewPoint Bank. LegacyTexas Bank is a subsidiary of LegacyTexas Financial Group. It earned four out of five stars in Bankrate’s latest review of its financial health.

When to buy a 10-year CD

Experts expect interest rates to continue rising. If they were on the decline, investing in a 10-year CD could work.

“If interest rates were going down, then a 10-year CD would be more beneficial because they’re locking into a higher interest rate,” says Danielle Howard, owner of Wealth By Design, a boutique firm in Basalt, Colorado offering financial planning and investment advice.

A 10-year CD could also seem appealing if you’re afraid of taking risks with money. Anyone in that camp should ladder CDs, or pair a 10-year CD with short-term certificates of deposit.

As the CDs mature, roll your savings into accounts with better rates. Use a CD ladder calculator to maximize your returns.

Why a 10-year CD is a bad idea

The best 10-year CD rates are just as high as some of the top 60-month CD rates. So leaving your funds tied up for five additional years doesn’t make sense.

Inflation is another concern. “If inflation is higher than the interest that you’re earning, you are actually losing buying power as the money sits in there for 10 years,” says Alan Dole, a wealth manager and financial planner with Equity Concepts, an investment and financial services firm in Richmond, Virginia.

Consider the opportunity cost

Don’t purchase a 10-year CD without evaluating other low-risk investment products like high-yield money market accounts. “Where else could you put that money that would earn you more?” Dole asks.

Savers could buy a 10-year CD and close the account before it matures. Just make sure the benefit of an early exit outweighs the cost of the withdrawal penalty.

“Worst case scenario, if I need to get out of this, am I comfortable with either paying that penalty or losing the interest along the way?” Howard asks.