In an economy marked by turmoil and uncertainty, a certificate of deposit can be a smart way to keep your money safe. It can also provide guaranteed returns since your rate is locked in when you open the account. A savings account, by contrast, has a variable rate, which can change at any time with market conditions.
Today’s best CDs boast annual percentage yields, or APYs, up to 4.50% — more than three times the national average for some terms. To get an idea of how much interest that could earn you, here’s a look at what you’d earn by depositing $5,000 into a top CD today.
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How much can you earn by depositing $5,000 into a CD?
If you have $5,000 to put into a CD, here are some sample earnings for several popular term lengths: six months, one year, three years and five years.
Your earnings with a $5,000 deposit
| Term | Top APY | Bank | Interest earnings | CD value at maturity |
|---|---|---|---|---|
| 6 months | 4.50% | CommunityWide Federal Credit Union | $92.55 | $5,092.55 |
| 1 year | 4.40% | Bask Bank; CommunityWide Federal Credit Union | $220.00 | $5,220.00 |
| 3 years | 4.15% | America First Credit Union | $648.69 | $5,648.69 |
| 5 years | 4.20% | America First Credit Union | $1,141.98 | $6,141.98 |
APYs as of April 2, 2025, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded annually.
The national average for a one-year CD is 1.78% APY as of April 2, 2025, while the average for a one-year CD for the top banks tracked at CNET is 4.06% APY. What difference does that make for your interest earnings?
The value at maturity for a one-year CD with the national average APY would be $5,089 if you deposit $5,000. However, if you deposit $5,000 into a one-year CD earning 4.40% APY — the top APY among CDs we track — you’d end up with a total value of $5,220.00.
How much can you earn by depositing other amounts?
If you want to put more — or less — money into a CD, you can still earn a competitive interest rate. Here are some examples of interest earnings for other deposit amounts.
Your earnings with different amounts
| Term | Top APY | $1,000 deposit | $2,500 deposit | $10,000 deposit | $25,000 deposit |
|---|---|---|---|---|---|
| 6 months | 4.50% | $22.25 | $55.63 | $222.52 | $556.31 |
| 1 year | 4.40% | $44.00 | $110.00 | $440.00 | $1,100.00 |
| 3 years | 4.15% | $129.74 | $324.35 | $1,297.38 | $3,243.46 |
| 5 years | 4.20% | $228.40 | $570.99 | $$2,283.97 | $5,709.91 |
APYs as of April 3, 2025, based on the top APY available from the banks we track at CNET. Earnings assume interest is compounded annually.
How interest on a CD is calculated
The APY on your CD represents the rate of return you’ll receive on your cash over 12 months. CDs earn compound interest, which means you earn interest on your initial deposit amount and any interest earned to date.
All banks compound interest differently. Your CD may compound interest daily, weekly or monthly. The more frequently the interest compounds, the more money you earn. You can use a CD calculator to figure out exactly how much interest your CD could earn.
How to select the right CD for you
When you’re looking for a CD, a good APY matters, but there are other important factors to consider, too. Ask yourself these questions when you’re choosing a CD:
- When will I need my money? Each CD has a set term, and you can’t withdraw your money during the term without paying an early withdrawal penalty. CD terms typically range from six months to five years, so pick one that fits your timeline.
- Do I meet the minimum deposit requirements? Some CDs have no minimum deposit requirement, but others may require a deposit of $1,000 or more. How much money you have to put into a CD can help narrow down your options.
- What are the costs? Some CDs charge fees, such as monthly maintenance or early withdrawal fees. These fees can eat into your earnings. Read the fine print for any CD you’re considering so you know what you’re signing up for.
- Is the bank insured? CDs at banks insured by the Federal Deposit Insurance Corporation and credit unions insured by the National Credit Union Administration are protected for up to $250,000 per account, per person. Look for CDs from these institutions to keep your money safe.