In case you hadn't noticed, CD rates have been falling over the past couple of months. The drop is a result of the Federal Reserve lowering its benchmark interest rate twice now in response to cooling inflation.

You may be eager to open a CD before rates fall even more. And the good news is that with many CDs still paying above 4%, you have a great opportunity to earn a nice amount of interest on your money. Click here for a list of the best CD rates today.

But one thing you don't want to do is overfund a CD. So if you have $10,000 to work with, you'll want to ask yourself whether all of that cash should go into a CD or whether it pays to deposit less -- or none at all.

Are you set for emergencies?

It's important to have access to money for unplanned expenses at all times. You just never know when your car might die, your roof might spring a leak, or your employer might tell you that you're out of a job.

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

American Express® High Yield Savings APY 4.00% Rate info 4.00% annual percentage yield as of November 19, 2024 Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	APY 4.00% Rate info 4.00% annual percentage yield as of November 19, 2024	Min. to earn $0
Capital One 360 Performance Savings APY 4.00% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Oct. 23, 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.	APY 4.00% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Oct. 23, 2024. Rates are subject to change at any time before or after account opening.	Min. to earn $0
CIT Platinum Savings APY 4.55% APY for balances of $5,000 or more Rate info 4.55% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000 for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	APY 4.55% APY for balances of $5,000 or more Rate info 4.55% APY for balances of $5,000 or more; otherwise, 0.25% APY	Min. to earn $100 to open account, $5,000 for max APY

Ideally, you should maintain an emergency fund with enough money to cover at least three months of essential expenses. If you have $10,000 on top of three months of living expenses, then putting $10,000 into a CD may not be a bad idea. But make sure to keep your entire emergency fund in a savings account so you have easy access to that cash at all times.

The good news is that many savings accounts today are paying almost as much interest as CDs. Granted, savings account rates aren't set in stone. But for now, you can enjoy a higher rate while it's still available. Click here for a list of the best high-yield savings accounts for your money.

What's the timing of your goals?

The money you put into a CD is money you won't have access to until that CD matures -- unless you're willing to take an early withdrawal penalty, which most banks charge. Because of this, you'll need to think about the timing of your financial goals.

Say there's a chance you'll buy a house next year if mortgage rates drop. If you put $10,000 into a 12-month CD this November but find that you're ready to buy a home in May, you're in a bad spot. You won't be able to access your $10,000 for another six months, so you'll either need to wait on that home purchase or risk a penalty fee.

That's why you need to make sure that any money you put into a CD, whether it's $10,000 or a different sum, is money you won't need too soon. If you're not sure about your timeline, you're better off sticking to a savings account.

There's a flipside to this, though. If you have $10,000 you don't expect to need for a long time, rather than put it into a CD, you should consider investing it in a brokerage account. Or, open an individual retirement account (IRA) if you want that money earmarked specifically for retirement.

Over the past 50 years, the S&P 500's average annual return has been 10%, which far surpasses the top CD rates today. And if you don't think you'll be using your $10,000 for many years, you have plenty of time to ride out potential stock market downturns and make money. In fact, a $10,000 investment today could be worth more than $108,000 in 25 years if you're able to generate a yearly 10% return in your portfolio during that time.

Whether $10,000 is too much to put into a CD this November really depends on you and your goals for the money. If it's part of your emergency fund or cash you might need very soon, then it's too much. If it's cash you won't need for a long time and can invest at a higher rate of return, it's also too much.

But if you're saving for a goal that's a few years away, putting $10,000 into a 12-month CD could be a great way to earn some risk-free interest while rates are still high enough to be tempting.