The economy is changing once again. Inflation is multiple points lower than it was at this point three years ago and is less than half a percentage point above the Federal Reserve's 2% goal. Interest rates, meanwhile, were reduced multiple times in 2024 and are expected to be cut again shortly, perhaps as soon as July or September. And stock market performance, following some uncertainty earlier in 2025, has bounced back in recent weeks. Still, any of these factors could change rapidly, easily impacting the money you have saved.

If you've been able to put away a large, five-figure sum of money, then, you'll want to protect it and grow it as best you can. And a certificate of deposit (CD) account can help you accomplish both goals. Still, depositing $10,000 or more into one of these accounts shouldn't be done in a cavalier manner, either. Before getting started this month, then, savers should first contemplate the answers to a few critical questions. Below, we'll detail three worth asking right now.

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3 questions to ask before opening a $10,000 CD now

While the following three questions aren't the only ones savers contemplating a CD of this size should be considering now, the answers to these critical ones will help better inform their overall approach:

Is a short-term or long-term CD better?

Historically, interest rates on short-term CDs were lower than their long-term counterparts, thus encouraging savers to lock their funds away for a longer period. But that's not the case right now, as short-term CDs tend to have rates as much as 25 basis points higher than long-term CDs, approximately. You'll need to calculate the interest-earning potential on both, then, to determine where you stand to earn more money. 

But you'll need to do so against the backdrop of an early withdrawal penalty if you take the funds out prematurely. These fees can potentially eliminate all or most of the interest earned to that point, depending on the lender, which can be significant for interest earned on $10,000. So you'll want to make sure you picked the term that best fits your financial goals (and budget).

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Can I afford to keep this much money frozen?

Chances are good that this $10,000 didn't just show up in your bank account without a lot of hard work and sacrifice. So you'll want to make sure to save it as best you can. But is a CD the most applicable way to do so, considering your financial situation? No matter if you choose a 3-month or 3-year CD, you'll need to keep this five-figure amount of money frozen until the maturity date, which may not always be achievable. 

Before parting with it, then, consider your realistic ability to keep it frozen as dictated by your lender and, potentially, look to put a smaller amount into an account instead. This will keep part of your funds liquid while giving the other portion the flexibility it needs to grow untouched in a high-rate CD.

Have I compared it to the alternatives?

Don't dismiss the alternative savings vehicles that come with high rates right now. Sure, high-yield savings and money market accounts both have variable rates. And both are positioned to decline alongside the federal funds rate as additional cuts are issued there. But rates on both accounts are still comparable to the top CDs right now and they're not likely to decline in such a material way anytime soon that will totally eliminate their advantages to savers. 

If you need to keep the $10,000 as an emergency fund, too, both may be better for you now (and money market accounts may even offer check-writing services that CDs will not). Whatever you decide to do, however, make sure you do it after closely comparing all of your alternatives.

The bottom line

With high rates and the potential to earn hundreds or even thousands of dollars with the right approach, many savers may feel inclined to rush into a CD account opening now. And that may (or may not) be the right decision. By taking a deep breathe, however, and by contemplating the answers to these three questions, these savers can better determine their next steps. With a realistic view of the market and a strategic approach, they can potentially make this $10,000 grow even further while protecting their principal at the same time.