This CD Could Turn $1,000 Into $114,000. Here's Why I'd Still Stay Away

With savings account interest rates expected to take a dive later this year, certificates of deposit (CDs) are looking pretty good. They guarantee your interest rate for the full term, and they could earn you a pretty handsome profit, depending on your balance and the account you choose.

Most people think it's pretty good if they can earn a few hundred dollars from a CD, but I found one that blows that out of the water. It could turn your $1,000 initial deposit into more than $114,000 by the term's end. But you won't catch me opening one and here's why.

How long are you willing to wait for your cash?

Traditional CDs usually have terms between six months and five years, though it's possible to find terms as short as a few weeks or as long as a decade. But Walden Mutual Bank, based in Concord, New Hampshire, offers a jaw-dropping 100-year CD.

It has a 4.75% annual percentage yield (APY), which is about on par with the best CD rates from online banks today. If you invested the minimum $1,000 in the 100-Year Local Impact CD today, you'd have $114,505.60 by the time the term ends.

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 10, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

It's a pretty impressive profit. The only problem is, you probably won't be around to reap those rewards. Even Walden Mutual Bank itself acknowledges that this CD is best for those looking to do some charitable giving or to invest in a trust intended to benefit a future generation. 

But if it sounds like something you're interested in, just contact the bank. The minimum deposit is $1,000 and the maximum is $150,000. You can withdraw your interest payments at any time. But if you take your principal out before 10 years, you could lose part of it due to the CD's early withdrawal penalty.

Alternative accounts to consider

If you're not sure if the Walden Mutual Bank 100-Year Local Impact CD is the right fit for you, it's probably not. Consider putting your cash in one of these accounts instead.

A traditional CD

A traditional CD with terms between six months and five years enables you to grow your wealth and reap the rewards while you're still alive. Short-term CDs -- those with terms under one year -- have the highest interest rates right now, with some exceeding the 4.75% that Walden Mutual Bank is offering.

High-yield savings account

A high-yield savings account keeps your cash accessible and enables you to withdraw your funds at any time. The best savings accounts right now offer rates at or close to the Walden Mutual Bank 100-year CD. But savings account interest rates can fluctuate over time, so they could drop in the future.

Brokerage account

A brokerage account is a better home for most people's long-term savings. While Walden Mutual Bank's 4.75% APY is pretty competitive for a CD, the S&P 500 -- a popular stock market index -- sees about a 10% average annual return over the long run. That could grow your wealth a lot faster than a 100-year CD, and you'll still have the freedom to take your cash out whenever you'd like.

None of these are the get-rich-quick answer you might have been hoping for, but they're surer -- and faster -- ways to grow your wealth than waiting a century for your CD to mature. And if you're not comfortable putting all your eggs in one basket, consider spreading your cash between a few different accounts.