Calculate Your 120-Month CD Return with APY Rates Before You Buy
The 10-Year CD Calculator helps you estimate the interest earned on a 120-month Certificate of Deposit (CD) based on various APY (Annual Percentage Yield) rates. Use this tool to compare rates of return, shop for the best policy, and understand your investment options before you commit. Our brokers provide free, no-obligation advice to ensure you get the best deal online.
What Is a 10-Year CD?
A 10-year CD is a long-term deposit account offered by banks or credit unions that pays a guaranteed interest rate until maturity. You deposit a lump sum and agree not to touch it for 10 years. Interest may be paid monthly, quarterly, or annually. When the term ends, you get back your original deposit and all the interest earned.
Why Some People Consider 10-Year CDs
- Stability: There’s zero market risk, and your deposit is FDIC insured up to $250,000 per depositor per bank.
- Guaranteed Yield: You lock in an interest rate for 10 years, which can be appealing if you expect rates to fall.
- Simplicity: You don’t have to worry about managing investments or market volatility.
The Downsides of a 10-Year CD
- No Flexibility: Withdrawing early triggers penalties—often multiple years’ worth of interest.
- Low Liquidity: You’re tying up your money for a decade with no access in case of emergencies.
- Inflation Risk: A fixed rate may lag behind inflation, reducing purchasing power over time.
- Opportunity Cost: If interest rates rise or better opportunities emerge, your money is stuck at a lower rate.
Who Should Use a 10-Year CD
- Pre-retirees or retirees with extra cash they don’t need for 10 years
- Estate planners wanting to leave a fixed sum to heirs without risk
- Conservative savers who prioritize safety over growth
- Trust or custodial accounts seeking guaranteed outcomes
Who Should Avoid a 10-Year CD
- Younger savers who may need access to their money for housing, family, or emergencies
- Investors seeking growth or inflation protection
- Retirees needing income now or in the next 5–10 years
- Anyone unsure about their future liquidity needs
Better Long-Term Alternatives to 10-Year CDs
1. Multi-Year Guaranteed Annuities (MYGAs)
MYGAs are the insurance industry’s version of a CD, offering a fixed interest rate for a set number of years. Unlike CDs, MYGAs often offer higher rates and tax-deferred growth.
Benefits:
- Often higher interest rates than CDs
- Tax-deferred growth helps build wealth faster
- Can be funded with IRA, Roth IRA, 401(k), or non-qualified money
- Avoid probate and support legacy planning
- Some offer free annual withdrawals or interest withdrawals
Drawbacks:
- Early withdrawal penalties and potential IRS tax penalties if under age 59½
- No FDIC insurance, but covered by state guaranty associations (varies by state)
Best for:
Savers aged 50–70 who want principal protection with a higher return than a CD
People with non-retirement savings looking for safe, tax-efficient growth
2. Fixed Indexed Annuities with GLWB (Guaranteed Lifetime Withdrawal Benefit)
These products provide market-linked growth (without losses) and allow you to turn the account into a lifetime income stream—even if the account runs out of money.
Benefits:
- Your money grows based on a stock market index, with no downside risk
- Optional income rider (GLWB) guarantees income for life
- Can be funded with pre-tax or post-tax money
- Offers better long-term growth potential than CDs or MYGAs
- Includes death benefits for heirs
Drawbacks:
- More complex than CDs or MYGAs
- Riders may come with annual fees
- Income amounts are fixed once withdrawals begin and may be less than potential market gains
Best for:
Pre-retirees age 55–70 seeking guaranteed income
People with large IRA balances needing to satisfy future Required Minimum Distributions (RMDs)
Anyone worried about running out of money in retirement
Our Favorite Rates To Grow Your Money
These are our preferred accounts because the savings, money market, and CDs only require $1 to open. This allows you to spread out risk in case a bank or credit union closes in the future. The fixed annuity offers one of the highest interest rates, provides penalty-free annual withdrawals for liquidity, and typically has a longer term than a CD.
| Term | Savings Account | Institution | APY |
|---|---|---|---|
| N/A | Money Market Account | Ponce Bank | 4.11% |
| N/A | Savings Account | Northpointe Bank | 4.30% |
| 6 Months | CD | Western Allicancer Bank | 4.25% |
| 12 Months | CD | Merrick Bank | 4.50% |
| 2 Years | Fixed Annuity | Oceanview Harbourview MYGA | 5.15% |
| 5 Years | Fixed Annuity | Wichita National | 6.40% |
Disclaimer: This is a comparison review. The Annuity Expert is not associated with a bank or credit union. We aim to help you find the highest interest rates for your savings. We may receive a small referral fee if you purchase something using a link in this guide.
What Happens After the CD Matures?
When your 10-year CD matures, your bank will either:
- Return your full principal and interest
- Or automatically roll it into another CD (usually a shorter-term one) if you don’t act quickly
Banks often give you a short “grace period” (around 7–10 days) to withdraw funds or transfer them elsewhere. If you miss it, you’re locked into another term.
Insurance That Complements a 10-Year CD
- Long-Term Care Annuities – Use tax-free benefits to cover care costs if you’re over 60 and want to avoid draining your CD
- Life Insurance – Replaces the value of your CD or annuity for your heirs, especially if you use it for income or care
- Income Annuities – GLWB-based products provide predictable monthly income to complement or replace the CD’s fixed growth
These insurance products offer enhanced control, tax advantages, and long-term income security that CDs do not.
Summary: CD vs. Annuity for Long-Term Planning
| Feature | 10-Year CD | MYGA Annuity | Indexed Annuity with GLWB |
|---|---|---|---|
| Risk Level | No risk (FDIC) | No market risk | No market loss risk |
| Liquidity | Low | Moderate with waivers | High after income starts |
| Income Option | No | No | Yes, lifetime income |
| Tax Benefits | Taxable annually | Tax-deferred | Tax-deferred |
| Death Benefit | Principal + interest | Full account value | Full account value |
| Better for Retirement? | No | Possibly | Yes |
Get Help Choosing the Right Long-Term Option
If you’re considering a 10-year CD, you owe it to yourself to compare it with MYGAs and annuities that offer better growth, income options, and flexibility.
Contact The Annuity Expert for free quotes on MYGAs and income annuities to see how much more you could earn—and how much more control you can keep over your savings.
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