Why you should open a $10,000 CD account this November

The Federal Reserve reduced interest rates again this week, its second time doing so in just six weeks. And, with the cut, borrowers started to breathe a little easier. A Fed rate cut, after all, while not an overnight fix, can go a long way toward reducing the high interest rates many borrowers have been saddled with in recent years.

A Fed rate cut for savers, however, is not generally as beneficial. Savvy savers have been able to exploit the elevated interest rate climate since 2022 by opening high-yield savings and certificate of deposit (CD) accounts. The latter type, for example, saw rates as high as 6% 2024. And CD rates are fixed, so savers who took action saw sizable (and reliable) returns, especially with larger, five figure deposit amounts like $10,000.

But is that the right CD account and size for savers to continue opening? While the benefits of an account of this amount are certainly waning, there’s a compelling case to be made for opening one a final time this November. Below, we’ll explain why.

Start by seeing how much interest you could still earn with a high-rate CD here.

Why you should open a $10,000 CD account this November

Not sure if a $10,000 CD account is still worth opening? Here’s what to consider to better inform your next steps:

This could be the end of high CD rates for a while

CD interest rates are already lower than what was available a year or two ago. It doesn’t make sense then to wait for them to fall any further, especially when options in the 4% or higher range still exist. But with the impacts of the October Fed rate cut still not fully accounted for in the interest rate climate and the possibility of another rate cut for the central bank’s final meeting of 2025, savers could be rapidly approaching the end of this high CD interest rate cycle. So take advantage while you can with a $10,000 deposit. This opportunity may be gone before the end of the year.

Compare top CD rates and lenders here and learn more about your options.

You’ll still earn hundreds (and potentially thousands) of dollars in interest

The potential interest-earning capabilities of a CD remain strong, if not what they were in 2024. A $10,000 3-year CD, for example, with a rate of 3.95% can earn savers more than $1,200 in interest now. A much shorter 9-month CD with a rate of 4%, meanwhile, can earn savers around $300, and they’ll have regained access to their funds in less than a year. 

In other words, there are still multiple viable ways in which savers can earn hundreds and potentially thousands of dollars in interest with a CD now. Just be sure to take the time to calculate your interest earnings before getting started, and only deposit an amount that you can afford to part with for the full CD term to avoid having to pay any early withdrawal penalties.

You’ll protect a portion of your money against market unknowns

Today’s economy has multiple unknowns to account for. Inflation is rising again. So is the unemployment rate, according to the most recently released data. And credit card debt remains problematic. While rate cuts can help in this climate, there are still market unknowns that could impact your savings and investments, perhaps in a more considerable way than it currently seems. 

But by opening a $10,000 CD account, you’ll be protecting a portion of your money against these unknowns. Not only do CDs have those fixed rates, meaning that your return won’t be impacted by further cooling in the rate environment, but they’re also FDIC-insured and generally considered to be a safe home for your funds. 

The bottom line

A $10,000 CD account was an obviously beneficial savings tool in recent years. And it can still be, albeit a slightly less profitable one, if savers act this November. By doing so, they can circumvent additional rate cuts ahead, earn interest worth hundreds or even thousands of dollars and protect their money against market volatility ahead. Take the time, then, to shop around for rates and lenders to find one that works best for you and strongly consider online banks, which tend to offer higher rates than banks with physical branch locations.