What Is the Longest-Maturity CD You Can Get?

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You can find CDs with terms of six, seven, or even 10 years — but are they right for you? Keep reading to find out. [[{“value”:”

Most banks on our radar offer certificates of deposit (CDs) in a variety of standard term lengths, and they generally max out with 5-year CDs. But what if you want to set up a stream of predictable interest income for even longer than five years? Do longer-term CDs exist?

The short answer is yes — you can find a CD with a longer maturity term than five years. But there’s a lot more to the story, so here’s what’s available and what to think about before you decide to deposit your money.

Some banks offer longer CDs

While the 5-year CD is the industry standard for a long-term CD, there are some banks that offer CDs that have even longer maturity terms. Just to name a few that exist as of this writing (Feb. 20, 2024):

Marcus by Goldman Sachs offers a 6-year high-yield CD with a $500 minimum deposit and a 4% APY.Discover® Bank offers a 7-year CD that has a $2,500 minimum deposit and a 3.80% APY. There’s also a 10-year CD available with the same 3.80% APY.Vio Bank offers CDs with terms of seven and 10 years, but both have relatively low 2.75% APYs as of this writing. These have $500 minimum deposits.

The point is that banks can, and sometimes do, offer CDs with maturity terms longer than five years.

Are long-term CDs a good idea?

Long-term CDs can be a smart way to set yourself up with years of predictable interest income. They can be an especially smart retirement income tool, especially while CD rates are relatively high. But long-term CDs aren’t the best idea in every case.

For one thing, while longer-term CDs exist, they might not be the best place to put your money for risk-free income if you want to lock in an interest rate for a long time. For example, the 10-year Treasury bond yield is about 4.28% as I’m writing this, and you can buy Treasuries with maturities as long as 30 years that pay risk-free income.

Plus, Treasury securities are relatively easy to buy through a brokerage that offers bond investing, or directly from the government at TreasuryDirect.gov if you’re looking to lock in income for a decade or more. For shorter-term CDs, rates are often slightly higher than those offered by Treasuries, but for long-term fixed-income purposes, Treasuries often have higher yields.

In addition, Treasuries have some key advantages over CDs if you want a long-term income stream. For example, while CDs are subject to the $250,000 FDIC insurance limit, Treasuries are backed in their entirety by the U.S. government. Plus, income from Treasury securities is exempt from state income taxes, while CD income is taxable at the federal and state level.

Also, while it’s no secret that there’s typically a penalty for withdrawing from a CD early, you might not be aware that many banks have harsher penalties for longer-term CDs. Plus, when rates are relatively high like they are now, it’s not uncommon to find significantly higher interest rates from short-term CDs.

The bottom line

The bottom line is that depending on your circumstances, long-term CDs like those discussed here could be right for you. But there could be better long-term income options, and if you aren’t sure you want your money tied up, it could be worth looking into creating a CD ladder of different maturities so you’ll have access to some of your money every so often.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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