You could earn better returns by investing in the stock market over a 10-year period instead of saving in a CD. Long-term CDs often have penalty fees equal to at least one year’s worth of interest. Should you need to withdraw money from your 10-year CD early, you will be subject to early withdrawal penalties. 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.

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