If you have cash you can set aside for a period of time, a deposit certificate can be a smart place to place it. Your rate is locked when you open a CD, so your returns will remain the same even when the rates drop after that.
You can earn up to 4.65% annual percentage yields so far Best cds. That is more than three times the National average For some terms. How much can you do? To give you an idea, let's see how much interest you earn if you put $ 5,000 on a leading CD today.
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Read more: Best CD rates for March 2025: Strengthen your revenues with APY up to 4.65%
How much can you earn by depositing $ 5,000 in a CD?
If you have $ 5,000 to put on a CD, here are some examples for many popular term lengths: six months, one year, three years and five years.
Your earnings with $ 5,000 deposit
| Term | Top APY | Bank | Profits of interest | CD value in maturity |
|---|---|---|---|---|
| 6 months | 4.65% | Communitywide Federal Credit Union | $ 114.93 | $ 5,114.93 |
| 1 year | 4.45% | Communitywide Federal Credit Union | $ 222.50 | $ 5,222.50 |
| 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 to March 6, 2025, based on the banks we monitor at CNET. The revenues are based on the APYs and assumes interest is combined -Includes year -old.
The National average For one person CD is 1.80% APY until March 6, 2025, while the average for one person CD for top banks monitored on CNET is 4.06% APY. What is this difference for your interest profits?
The amount in maturity for a person CD with a national average APY is $ 5,090 if you deposit $ 5,000. However, if you deposit $ 5,000 to a CD person who earns 4.45% APY-the top APY on the CDs we keep track of-you end a total amount of $ 5,222.50.
How much can you earn by depositing other values?
If you want to put more – or less – money on a CD, you can still earn a competitive interest rate. Here are some examples of interest revenues for other deposit values.
Your profits with different values
| Term | 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 |
APYs on March 6, 2025, based on the top APY available from the banks we tracked at CNET. The revenues assume the interest is combined -together year -old.
How interesting is calculated in a CD
APY in your CD represents the Return rate You will receive your cash within 12 months. CDs earn Compound interestwhich means you earn interest in your initial amount of deposit and any interests obtained to the present.
All banks have a different interest. Your CD can be compound of interest every day, weekly or monthly. The more frequent compounds of interest, the more money you make. You can use a CD calculator To find out how much interest your CD can earn.
How to choose the right CD for you
When you are looking for a CD, a great apy thing, but there are other important factors to consider. Ask yourself these questions when you choose a CD:
- When will I need my money? Each CD has a set term, and you cannot withdraw your money during the term without paying a Early removal of the penalty. CD terms usually range from six months to five years, so choose one that fits your timeline.
- Do I meet the minimum deposit requirements? Some CDs do not have the minimum deposit requirement, but others may require a deposit of $ 1,000 or more. How much money you need to put on a CD can help narrow your choices.
- What are the costs? Some CDS fees, such as monthly maintenance or early removal fees. These fees can eat your profits. Read the fine printing for any CD you consider to know what you signed.
- Is the bank insurance? The CDs in banks ensured by Federal Deposit Insurance Corporation and credit unions ensured by the national credit union administration are protected by up to $ 250,000 per account, per person. Find CDs from these institutions to keep your money safe.
