Here’s How Much You Can Earn by Depositing $5,000 Into a CD Now
A certificate of deposit can be a great place for savings you don’t need to touch for a while. In exchange for money from CDs throughout the semester, you can enjoy a fixed interest rate, which means your income remains the same, no matter where the total interest rate is.
Today’s Top CD Provides annual percentage or percentage of APY up to 4.65%. Depending on the CD and term you choose, depositing $5,000 into one of them may result in more than $1,000 in interest. To give you an idea of ​​how much money you can make, we’ve broken down some sample returns for a $5,000 deposit – and some other amounts.
Read more: Best CD Rate for February 2025: Get more than double the national average with these top accounts
How much money can you make by depositing $5,000 into a CD?
If you have $5,000 for CD, here are a few example income for popular semester lengths – six months, one year, three years and five years.
Your income of $5,000 in deposit
| semester | Top APY | bank | Interest income | CD value at maturity |
|---|---|---|---|---|
| 6 months | 4.65% | Community-wide federal credit union | $114.93 | $5,114.93 |
| 1 year | 4.45% | Community-wide federal credit union | $222.50 | $5,222.50 |
| 3 years | 4.15% | The first credit union in the United States | $648.69 | $5,648.69 |
| 5 years | 4.35% | The first credit union in the United States | $1,186.32 | $6,186.32 |
As of February 5, 2025, according to banks we tracked on CNET. The gain is based on APY and assumes that interest is more complex every year.
As of February 5, 2025, the national average of one-year CDs was 1.82% APY, while the average of one-year CDs for top banks tracked in CNET was 4.07% APY. How does this differ on your interest income?
If you deposit $5,000, the maturity of CD for one year is $5,091 for one year. However, if you deposit $5,000 into a CD for one year and earn 4.45% of the APY (the highest APY in the CDs we track), your final total value is $5,222.50.
Want to deposit other amounts? This is how much money you will make
If you want to put more or less money into CDs, you can still get competitive interest rates. Here are examples of interest income for other deposit amounts.
Your income is different
| semester | Top APY | $1,000 deposit | $2,500 Deposit | $10,000 deposit | $25,000 deposit |
|---|---|---|---|---|---|
| 6 months | 4.65% | $22.99 | $57.46 | $229.86 | $574.65 |
| 1 year | 4.45% | $44.50 | $111.25 | $445.00 | $1,112.50 |
| 3 years | 4.15% | $129.74 | $324.35 | $1,297.38 | $3,243.46 |
| 5 years | 4.35% | $237.26 | $593.16 | $2,372.64 | $5,931.59 |
As of February 5, 2025, APY is based on the highest APY offered by banks we track on CNET. Earnings assume interest increases every year.
How to calculate CD interests
this APY On your CD, it represents the rate of return on cash you receive within 12 months. CD Earn Complex interestswhich means you can earn interest from the initial deposit amount and any interest you earned so far.
Complex interest rates vary for all banks. Your CD will complicate your CD every day, weekly or monthly. The more frequent interest compounds are, the more money you earn.
You can use CD calculator Figure out exactly how much interest your CD can earn.
How to choose the right CD for you
A good APY is important when you are looking for a CD, but there are other important factors to consider. Ask yourself these questions when choosing a CD:
- When do I need my money? Each CD has a set deadline and you cannot withdraw your money within the semester Get fines early. CD terms usually range from six months to five years, so choose one that suits your schedule.
- Do I meet the minimum deposit requirements? Some CDs do not have a minimum deposit requirement, but others may require a deposit of $1,000 or more. How much money you have to invest can help you narrow down your choice.
- What’s the fare? Some CDs charge fees, such as monthly maintenance or early withdrawal fees. These fees may be brought into your income. Read the beautiful print of any CD you are considering so that you know what to sign up for.
- Is the bank insured? Bank CD insured by bank Federal Insurance Company Credit unions insured by the National Credit Union Administration are protected by up to $250,000 per account. Look for CDs from these institutions to keep your funds safe.
