6 best 10-year CDs for December 2023

If you're a saver who's looking for ways to maximize the returns on your money, there are lots of smart options to choose from right now. Because the Federal Reserve has hiked rates 11 times in the past two years, both high-yield savings and certificates of deposit (CD) accounts now come with rates that are much higher than they were just a few years ago. The rates on these accounts are also much better than the average rate of 0.46% you could get by putting your money in a regular savings account. 

And, if you've been looking into what a CD can offer you in particular, you probably know how high rates are currently — especially when it comes to shorter-term CDs. For example, it's currently possible to find rates above 5% on 3-month, 6-month or 1-year CDs. Those types of rates make it a great time to put at least some of your money into this type of account. 

But while putting money in a short-term CD can be pretty lucrative today, you shouldn't overlook what longer-term CDs can offer — and that's true of 10-year CDs in particular. While rates on long-term CDs aren't as high as what you can get on shorter-term CDs, they are still much higher than they were in 2020 and 2021. And, if you lock a CD rate in now, you'll earn the same great rate for the full CD term, resulting in big returns — no matter what happens with the overall rate environment.

Find the best long-term CD rates available to you here.

6 best 10-year CDs for December 2023

The 10-year CD availability is limited compared to shorter-term CDs, but there are still plenty of good options to choose from, including:

• Apple Federal Credit Union — 4.00% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal penalty is the lesser of the dividends earned since issuance or renewal or 1095 days dividends
• Credit Human Federal Credit Union — 4.00% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal penalty is 365 days of interest
• Discover Bank — 3.80% APY: This CD has a $2,500 minimum opening deposit requirement; the early withdrawal penalty is 15 months of interest
• EmigrantDirect.com — 2.75% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal penalty is 180 days of interest
• Vio Bank — 2.75% APY: This CD has a $500 minimum opening deposit requirement; the early withdrawal penalty is 3% of the amount withdrawn plus a $25 fee
• MySavingsDirect — 2.00% APY: This CD has a $1,000 minimum opening deposit requirement; the early withdrawal penalty is up to 180 days of interest

Explore your top CD options online here.

Does it make sense to open a 10-year CD right now?

Choosing a 10-year CD in today's financial landscape may seem counterintuitive, especially when shorter-term CDs often offer higher interest rates. However, there are several compelling reasons why opting for a 10-year CD could be a smart move for certain investors, including:

• To lock in higher rates for the long term: While shorter-term CDs may provide slightly higher interest rates at the moment, a 10-year CD allows you to lock in today's rates for an extended period. In an environment where interest rates could fluctuate or decline, having a fixed rate for the next decade could prove advantageous.
• For predictable returns and stability: A 10-year CD provides a predictable and stable source of income over an extended period. This can be particularly appealing for investors who want to secure a reliable stream of interest income without the fluctuations associated with riskier investments, like stocks.
• For protection against interest rate declines: If interest rates were to decline in the future, holders of 10-year CDs would be shielded from the impact, as their rates are fixed. This can be a valuable hedge against economic uncertainties and fluctuating interest rate environments.
• For investment portfolio diversification: Including a 10-year CD as part of a diversified investment portfolio can provide balance and reduce overall risk. While shorter-term investments offer liquidity, a longer-term CD contributes stability and a fixed-income component.
• For long-term financial planning: For those with a longer investment horizon and a goal of building wealth over time, a 10-year CD aligns well with a disciplined, long-term financial plan. It can serve as a core element in a comprehensive strategy aimed at achieving specific financial objectives.
• To avoid reinvestment risk: Choosing a longer-term CD eliminates the need to constantly reinvest funds as shorter-term CDs mature. This can be beneficial in situations where reinvestment options might offer lower rates due to economic conditions.
• For peace of mind and reduced decision-making: Investors who prefer a more hands-off approach may find comfort in the simplicity of a 10-year CD. With a set-and-forget mentality, there's no need for frequent investment decisions.

The bottom line

The decision to choose a 10-year CD ultimately depends on individual financial goals, risk tolerance and market expectations. That said, there are a handful of good options to consider if you're leaning toward this type of long-term CD, and the factors listed above highlight the potential benefits of taking a longer-term approach despite the current landscape of lower rates on such CDs. Still, it's essential for investors to carefully consider their unique circumstances before making any significant, long-term financial decisions.