Key Takeaways
- Headline-grabbing stocks like Nvidia (NVDA) or Telsa (TSLA) can deliver big gains fast—but they can also plunge just as quickly.
- CDs may seem boring, but they offer solid returns right now—with zero risk of loss.
- Today’s top nationwide CDs let you lock in a mid-4% return for months or even years. But you need to act fast, since upcoming Fed rate cuts will likely push CD rates down.
- The right move depends on what you value more: growth potential or a guaranteed positive return.
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A Hot Stock Can Soar Fast—but Crash Just as Quickly
Headline-grabbing stocks are tempting for a reason. Shares of companies like Nvidia and Tesla have repeatedly made the news—Nvidia is up more than 25% this year, while Tesla’s wild swings show how quickly momentum can shift. Hearing about early investors who made huge profits can make it feel like you need to jump in before the opportunity’s gone.
But what shoots up can also plummet. When you put all your money into a single stock, a sudden change in earnings, competition, or market sentiment can wipe out gains fast. Even a broad index fund carries risk, but the stakes are far higher when your entire $10,000 depends on just one company.
If you’re comfortable with the risk—and it’s money you can afford to lose—there’s nothing wrong with making that bet. But for money tied to short-term financial goals, the potential for loss can make it an ill-advised choice. That’s when safer options, though less exciting, start to look more appealing.
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CDs Offer Guaranteed Growth With Zero Risk—but Act Fast
If you want steady growth without the stress of stock market swings, a federally insured certificate of deposit (CD) is one of the smartest choices. Thanks to today’s higher rates, you can lock in a guaranteed return in the mid-4% range—whether for a few months or several years.
But time is short. That’s because the Federal Reserve is widely expected to cut interest rates in less than two weeks, which will likely push the best CD rates lower. That means the returns available now may disappear quickly, making this a rare window to secure a strong, risk-free payout before it’s gone.
Unlike a stock, where your $10,000 could surge or sink, a CD gives you certain growth. You’ll know exactly how much you’ll earn, and with FDIC or NCUA insurance, your deposit is protected up to $250,000.
Of course, even today’s best CDs won’t deliver the outsized returns a stock can produce in a bull market. But for those looking to avoid market volatility, the peace of mind that comes from a CD’s guaranateed growth can be worth more than the chance of hitting it big.
| $10,000 in Nvidia vs. a Top CD: Potential Outcomes | ||
|---|---|---|
| Funds after 1 year | Gain or loss | |
| Stock with a 20% loss | $8,000 | – $2,000 |
| Stock with a 10% loss | $9,000 | – $1,000 |
| Stock with a 5% loss | $9,500 | – $500 |
| Stock with no gain | $10,000 | + $0 |
| CD with a 4.50% APY | $10,450 | + $450 |
| Stock with a 5% gain | $10,500 | + $500 |
| Stock with a 10% gain | $11,000 | + $1,000 |
| Stock with a 20% gain | $12,000 | + $2,000 |
Which Path Fits Your Goals—and Your Timeline?
The better choice for $10,000 depends on your goals, your risk tolerance, and when you’ll need the money.
If this is money you can leave alone for years, betting on a stock like Nvidia might pay off—if you’re comfortable with the chance of short-term losses. But if you’re saving for something important, like a home down payment in the next year or two, risking a drop in value could derail your plans.
It also depends on how much you’ve already saved. If $10,000 is only a small piece of your portfolio, you may be able to stomach the volatility. But if it’s the bulk of your savings, protecting it in a safe, guaranteed account is usually the smarter play.
Both CDs and individual stocks can play a role in a balanced strategy. The key is deciding whether you value growth potential more—or the certainty of having your money when you need it.
Daily Rankings of the Best CDs and Savings Accounts
We update these rankings every business day to give you the best deposit rates available:
Important
Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This can be very different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.
How We Find the Best Savings and CD Rates
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.
Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.