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If you’re looking to earn an elevated return on your money, a certificate of deposit (CD) account could be one of the best options to choose. And if you’re looking to avoid market uncertainty with a guaranteed return, the fixed interest rate the account offers can easily accomplish both goals. But if you’re hoping to maintain flexibility and access to your money, a CD account may not be the right choice for you. In the interest rate environment many savers find themselves in, however, accessibility may not be nearly as important as earning as much interest on their money for as long as possible.
For these savers, a $10,000 long-term CD may make a lot of sense now. This is enough money to earn a sizable return, but not so much as to totally drain the accounts of many. And with a long-term account, not only will the interest compound over 18 months or longer, but savers will enjoy extended protection on their funds against today’s market instability thanks to that fixed interest rate. Still, to earn that return, savers will be required to give up access to their money, meaning that the result will need to be worth it. But will it be? Below, we’ll break down exactly how much interest a $10,000 long-term CD can earn savers now.
Earn more interest on your money with a high-rate CD account here.
Here’s how much interest a $10,000 long-term CD can earn now
Because of the CD’s fixed rate that will be frozen until the maturity date, determining the precise interest-earning potential is simple. Here’s how much interest a $10,000 long-term CD account can earn currently, calculated against the top rates most savers will be able to find this June and the assumption that no fees or early withdrawal penalties are issued against the accounts:
- $10,000 18-month CD at 4.15%: $628.91 upon maturity
- $10,000 2-year CD at 4.16%: $849.31 upon maturity
- $10,000 3-year CD at 4.15%: $1,297.38 upon maturity
- $10,000 5-year CD at 4.20%: $2,283.97 upon maturity
- $10,000 10-year CD at 3.90%: $4,660.73 upon maturity
Savers stand to earn between $629 and $4,661, approximately, with a $10,000 long-term CD account that’s opened now and maintained through the maturity date. That said, there are tax implications to consider with earned CD interest, especially for larger amounts. But with rates on traditional savings accounts under 0.40% now and rates on high-yield savings and money market accounts unlikely to hold long-term, a CD can still be the optimal way to protect and grow your money now and in the months and years still ahead.
See how high your current CD rate offers are here.
The bottom line
A $10,000 long-term CD comes with a return worth hundreds of dollars in the next two years and thousands of dollars past that point. But it’s not just the big return savers should appreciate here as the account’s fixed rate, reliability and security (CDs are FDIC-insured up to $250,000 per account) make this one of the very best homes for your money now. Consider shopping around online today, then, to see which rates and terms you qualify for and start earning more interest on your money right away.