If you've been looking for a secure way to invest your money lately, a certificate of deposit (CD) account may be worth exploring. While interest rates on CDs have fallen in recent months, they're still elevated, particularly compared to the sub-1% rates many savers would have been offered in 2020 or 2021. Now, savers can get a rate between 4.50% and 5% or even higher, depending on the bank and the CD term (or length).
That latter factor is a critical one for those considering a CD, particularly for those looking for a place to store a five-figure sum of money. While a $10,000 deposit into either a long-term or short-term CD can be beneficial for savers, it helps to know which of the two may be better to open right now. And, for many, that could be the long-term option. Below, we'll detail why. Start earning more interest with a top CD here now.$10,000 long-term CDs vs. short-term CDs: Which is better to open now? Not sure which CD type is better for your $10,000? Here are three reasons why a long-term CD may be the preferred option: A bigger return Arguably the most important reason to deposit $10,000 into a long-term CD instead of a short-term one? The much bigger return you stand to make upon account maturity. While a 6-month CD technically has the higher interest rate now (4.61% versus a 3-year CD's 4.25%), that higher rate will easily be negated by the short account life. With a $10,000 deposit, you'll earn around $230 with a 6-month CD and around $1,330 with a 3-year option. That's approximately $1,100 more earned simply by leaving your funds untouched for an additional 30 months. So, if you can afford to do so, a long-term CD is the better way to earn a bigger return now. Get started with a long-term CD online today. Extended financial protection No matter the CD term you ultimately choose, the rate you open the account with will be fixed. But only one will offer extended financial protectio