A certificate of deposit can be a great place to stash cash you won’t need to touch for a while. Unlike savings account rates, which can change at any time, CDs offer a fixed rate that’s locked in when you open the account. So you’ll continue to earn the same amount of interest even if rates go down after that.
Today’s best CDs boast annual percentage yields as high as 4.65% — more than three times the national average for some terms. To give you an idea of how much interest this can net you, here’s what your earnings would be if you put $10,000 into a top CD today. (And if you don’t have that much to deposit, don’t worry. We’ll look at some other amounts, too.)
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How much can you earn by depositing $10,000 into a CD?
Here’s how much you can earn if you deposit $10,000 into a six-month, one-year, three-year and five-year CD. We’re calculating your return based on the highest APYs currently available for each CD term, based on the banks we track at CNET.
Earnings for a $10,000 CD deposit
One of the biggest trade-offs for most CDs is early withdrawal penalties. If you need to pull out your money early, most CDs charge you an early withdrawal penalty equal to a certain period’s worth of interest. These penalties can eat into your interest earnings. If you’ll need to access your money sooner, a high-yield savings account may be a better fit.
