How Much Interest Can You Earn by Depositing $5,000 Into a CD Today?
If you have cash, you can reserve for a while and a certificate of deposit can be a clever place. When you turn on the CD, your rate is locked, so your return will remain the same even if the rate drops.
Your annual rate of return can reach up to 4.65% The best CD. This is more than three times National average Some terms. How much money can you give? To give you an idea, let’s see how much interest you’ll get if you put $5,000 into the top CD today.
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Read more: Best CD rates for March 2025: Increase your earnings by up to 4.65%
How much money can you make by depositing $5,000 into a CD?
If you have $5,000 for CD, here are sample income for several epidemic periods: 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 | 4.20% | The first credit union in the United States | $1,141.98 | $6,141.98 |
As of March 6, 2025, according to banks we tracked on CNET. The gain is based on APY and assumes that interest is more complex every year.
this National average As of March 6, 2025, the one-year CD was 1.80% APY, while the average of the one-year CDs tracked by top banks in CNET was 4.06% APY. How does this differ on your interest income?
If you deposit $5,000, the maturity level for one year is $5,090 for one year. However, if you earn 4.45% of the APY (the highest APY in the CDs we tracked), you end up with a total value of $5,222.50.
How much money can you make by depositing other amounts?
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 | 4.20% | $228.40 | $570.99 | $$ 2,283.97 | $5,709.91 |
As of March 6, 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
APY on CD stands for Rate of return You will receive cash 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 Deposit 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.
