If rates increase during your CD term, you’ll be locked into a lower APY for up to ten years, meaning you’ll miss out on interest. Because 10 years is often the longest term available for standard certificates, you can use a 10-year CD as the last account to mature in your CD ladder.
A 10-year CD offers the security of FDIC or NCUA insurance and is low-risk compared to other, more volatile investments. Fixed CD rates let you predict how much interest you’ll earn in 10 years. You can often earn a higher rate with a 10-year CD compared to a shorter CD term, but this varies by bank.
Before you start shopping around for 10-year CD options, here are a few pros and cons to weigh. Opening a 10-year CD might appeal to some savers more than others.
