What Returns Can You Expect from a $10,000 CD Today?

Essential Insights

• Thanks to the Federal Reserve's robust measures to curb inflation, CD rates are at their highest in two decades.
• Starting a CD investment now secures you a top-tier interest rate for a fixed term, protecting your earnings from future rate drops.
• Currently, the leading CD rates nationwide range from 5.20% to 6.18% APY across terms spanning 6 months to 5 years.
• Investing $10,000 in a high-yield CD can generate substantial interest gains—far exceeding typical savings account returns.
• CDs also encourage disciplined saving by limiting access to funds, helping you avoid impulsive spending.

2023 Sees a Surge in CD Rates

Over the past 20 months, the Federal Reserve has taken decisive action against inflation by raising the federal funds rate 11 times, culminating in a cumulative increase of 5.25%, marking the highest level since 2001.

This hike directly benefits savers, as banks and credit unions adjust their deposit rates accordingly, pushing yields on high-yield savings, money market accounts, and CDs to historic highs.

All CD terms from 3 months to 5 years have experienced remarkable rate increases. For example, 1-year CD rates have soared from just over 1% in March 2022 to above 6% today.

Understanding CDs and Their Current Advantage

Certificates of Deposit (CDs) offer a fixed interest rate for a predetermined term, often higher than savings or money market accounts. This means when you open a CD, you lock in a guaranteed rate for the duration.

Given the current high rates, locking in a CD now protects you from potential rate declines if the Fed lowers rates in 2024. While savings and money market rates may drop, your CD rate remains intact until maturity.

Though there's a chance rates might increase slightly if the Fed raises rates again, it's equally possible the current rates are near their peak. Either way, CDs represent a smart choice in today's elevated rate environment.

Projected Earnings from a $10,000 CD Investment

Your earnings from a $10,000 CD depend on the term length and the specific CD rate you select. Below, we illustrate potential returns from top national CD rates across various terms.

For comparison, we've also included earnings from a hypothetical 3% savings account to highlight the benefits of committing to a CD. Keep in mind, savings account rates may fall once the Fed reduces rates, unlike the fixed CD rates.

Before the Fed's rate hikes in 2022, the highest savings account APY was just 0.70%, underscoring the current attractive yields.

Estimated Returns on $10,000 CDs at Current Top Rates

Considering Different Investment Amounts?

If $10,000 is beyond your current budget, or if you have more—like $2,000, $5,000, or even $25,000—we've outlined the expected earnings for these amounts at leading nationwide CD rates.

Potential Earnings by Deposit Size at Top CD Rates

CDs Come with Conditions—Use Them Wisely

One key consideration with CDs is the early withdrawal penalty, which applies if you access your funds before the maturity date. Penalties vary by institution, so it's important to understand these terms before committing. When choosing between similar rates, opt for the CD with the least severe penalty.

Interestingly, these penalties can serve as a deterrent against unplanned spending, helping you maintain your savings discipline. Selecting an appropriate term ensures your money grows while remaining safely invested.

Current Best Rates (May 2025):
CDs: Up to 4.50% APY
High-Yield Savings Accounts: Offers up to 5.00% APY
Money Market Accounts: Up to 4.40% APY

How We Gather Rate Data

Investopedia monitors daily rate data from over 200 federally insured banks and credit unions nationwide to rank top-paying CDs and savings accounts. Eligible institutions must operate in at least 40 states and have minimum initial deposits of $25,000 or less.

Credit unions requiring donations exceeding $40 for membership are excluded to ensure accessible options. For full details on our rate selection process, please refer to our comprehensive methodology.

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