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.
The best 10-year CD rates for August 2020
- EmigrantDirect.com: 1.10% APY; $1,000 minimum deposit to open
- MySavingsDirect: 1.10% APY; $1,000 minimum deposit to open
- Discover Bank: 1.05% APY; $2,500 minimum deposit to open
- Vio Bank: 0.80% APY; $500 minimum deposit to open
- PNC Bank: 0.30% APY; $1,000 minimum deposit to open
Note: The APYs (Annual Percentage Yield) shown are as of July 30, 2020. Bankrate’s editorial team updates this information regularly. APYs may have changed since they were last updated. The APYs for some products may vary by region.
Today’s top widely available 10-year CD pays 1.10 percent APY. This may be a good place to invest for long-term financial goals, like funding your child’s college education or leaving them money to use post-graduation.
Bankrate’s guide to choosing the right cd rate
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Methodology for Bankrate’s Best CD Rates
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: annual percentage yield (APY), the minimum needed to earn that APY (or to open the CD) and whether or not it is broadly available. All of the accounts on this page are insured by Federal Deposit Insurance Corp. (FDIC) banks or by the National Credit Union Share Insurance Fund (NCUA) at National Credit Union Administration (NCUA) credit unions.
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
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.
Best 10-year CD details
EmigrantDirect.com: 1.10% APY; $1,000 minimum deposit to open
EmigrantDirect is a division of Emigrant Bank.
EmigrantDirect has CDs with terms ranging from six months to 10 years. All of these CDs require a $1,000 minimum deposit.
On the savings side, EmigrantDirect has its American Dream Savings Account. That savings account doesn’t have fees or service charges.
MySavingsDirect: 1.10% APY; $1,000 minimum deposit to open
Besides a 10-year CD, MySavingsDirect also offers other long-term CD options. These range from a five-year CD to the 10-year CD. All of those CDs earn the same APY.
A six-month CD and a 30-month CD are also available for those looking for a shorter term.
The bank is an online division of Emigrant Bank, a New York-based institution founded by Irish emigrants as a mutual savings bank in 1850.
Discover Bank: 1.05% APY; $2,500 minimum deposit to open
Few well-known banks offer 10-year CDs. One exception is Discover Bank, which offers CDs across all standard terms. The bank’s 10-year CD yield is higher than the rates tied to the rest of its accounts. Still, it’s best for savers to proceed with caution before making a long-term investment in a CD.
Discover is an online bank headquartered in Greenwood, Delaware. One of its core values is to help bring financial education to students nationwide. Until August 2000, it was known as the Greenwood Trust Company, which was incorporated in 1911.
Vio Bank: 0.80% APY; $500 minimum deposit to open
Vio Bank is an online-only financial institution serving savers from coast-to-coast. Consumers in the market for a high-yield savings account or CD have access to competitive rates. CD terms range from six months to 10 years.
The bank is a new online division of MidFirst Bank, a financial institution based in Oklahoma City.
PNC Bank: 0.30% APY; $1,000 minimum opening deposit
PNC Bank has approximately 2,300 branches and 9,100 ATMs. PNC Bank has its corporate headquarters in Pittsburgh.
PNC Bank has been around for more than 160 years. PNC has branches across the mid-Atlantic, Midwest and Southeast.
The PNC High Yield Savings account is available in eligible markets. The account doesn’t require a minimum balance, so it’s an option if you’re just starting to save. The account also doesn’t have a monthly maintenance fee.
You’ll want to keep your PNC High Yield savings open for at least 180 days. Closing it before this will result in a $25 fee.
Coronavirus and Your Money
The COVID-19 pandemic is deepening financial hardships for millions of Americans.
While CD rates are not likely to rise in this environment, their stability can offer some comfort to those who still have extra cash on hand. The rate on a CD stays the same during the deposit term and the account holder knows exactly when that term will end. With their locked-in interest rates, CDs are also a great choice to avoid the stock market’s ups and downs.
Who does a 10-year CD work best for?
How you invest your money depends in part on your risk tolerance. A 10-year CD could be a good fit for someone who’s afraid of taking risks with money and would prefer to have a guaranteed rate of return. Anyone in that camp should ladder CDs, or pair a 10-year CD with short-term certificates of deposit.
As the CDs mature, consider rolling your savings into accounts with better rates. Use a CD ladder calculator to maximize your returns.
When is a 10-year CD a good idea?
By going with a 10-year CD, you can be certain that the money you put into your account will be returned to you with the initial principal amount, plus interest.
The Federal Reserve cut rates three times in 2019 and there were a pair of emergency cuts in March 2020. The future is uncertain and CD rates are likely to decrease in the near future.
When is a 10-year CD a bad idea?
In many cases, you can earn more money with a 60-month CD than with one of the best 10-year 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.
Best 10-year CD rates — August 2020
| Institution | APY | Minimum deposit |
|---|---|---|
| EmigrantDirect.com | 1.10% | $1,000 |
| MySavingsDirect | 1.10% | $1,000 |
| Discover Bank | 1.05% | $2,500 |
| Vio Bank | 0.80% | $500 |
| PNC Bank | 0.30% | $1,000 |
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