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What will a 4% CD interest rate earn in 10 years?
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It’s likely that you’ve felt the pinch of today’s high interest rate environment if you have credit card debt or you’ve recently purchased a home or car. Today’s high rates are the result of multiple federal funds rate hikes that took place over the last couple of years in response to pandemic-era inflation. Though the Federal Reserve paused rate hikes in late 2023, borrowers are still feeling the pressure of a 23-year record high benchmark rate.
But there’s a silver lining to high interest rates – especially for savers. The federal funds rate plays a role in the rates you pay to borrow money and the returns banks pay you to deposit it. So, interest rates on deposit accounts, like certificates of deposit (CDs), can be hard to ignore in today’s high interest rate environment.
With interest rates expected to cool later this year, now may be the time to lock in high deposit account returns for the long-haul with a 10-year CD. But how much money will you earn if you do? That’s what we’ll break down below.
Compare some of today’s best CD rates.
What will a 4% CD interest rate earn in 10 years?
The amount of money you earn on your 10-year CD depends on the interest rate you lock in when you open your account and the amount of money you deposit. Some of the best 10-year CDs, offer rates as high as 4%. But what does that equate to in terms of cash earnings over 10 years? Here’s what you can expect to earn on a 10-year CD with a 4% interest rate, based on different deposit amounts:
- $1,000: You would earn $480.24 for a total of $1,480.24 after 10 years.
- $2,500: You would earn $1,200.61 for a total of $3,700.61 after 10 years.
- $5,000: You would earn $2,401.22 for a total of $7,401.22 after 10 years.
- $10,000: You would earn $4,802.44 for a total of $14,802.44 after 10 years.
- $15,000: You would earn $7,203.66 for a total of $22,203.66 after 10 years.
- $20,000: You would earn $9,604.89 for a total of $29,604.89 after 10 years.
- $25,000: You would earn $12,006.11 for a total of $37,006.11 after 10 years.
Open a CD now and start earning today.
Why it makes sense to open a 10-year CD right now
High returns aren’t the only reason it may be a good idea to open a 10-year CD right now. Find more reasons to do so below.
Rates could fall ahead
The federal funds rate – the benchmark rate for consumer borrowing and deposit accounts – is frozen at a 23-year high. But that rate could thaw soon. In fact, economists expect that the Federal Reserve could start to reduce its benchmark interest rate within the next few months. When the central bank reduces its rate, returns on deposit accounts are likely to follow.
But when you open a CD, you lock in the return on the account for its entire term. So, if you open a 10-year CD now, you’re guaranteed today’s high rate of return for the next decade – regardless of what the Federal Reserve decides to do.
CDs are safe
Most CDs come with FDIC deposit insurance on balances up to $250,000. With this insurance in place, the financial institution you open your CD with could go out of business and you would still be able to recover your money. So, CDs are a safe investment option.
CDs offer predictable returns
There’s quite a bit of uncertainty in the economy and financial markets at the moment. CDs are a compelling way to offset that uncertainty in your portfolio. These accounts provide a fixed rate of return to maturity. That means, if you open a CD today, you’ll know exactly how much money you’ll earn over time. So, your returns are immune to the ebbs and flows of financial markets and the macroeconomic climate.
Tap into predictable returns with a CD now.
The bottom line
You could earn anywhere from a few hundred to several thousand dollars by investing in a 10-year CD. That depends on how much money you invest and the rate of return you earn. Moreover, with the prospect of rate cuts high, now may be the right time to do so. Compare today’s leading CD offers and lock in your rate now.
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Long before comic book characters dominated movie screens, actor Christopher Reeve made the world believes in superheroes with the 1978 classic “Superman.”
Reeve died in 2004, nearly a decade after an accident re-shaped his life. “Super/Man: The Christopher Reeve Story” is using interviews with family and friends and never-before-seen home videos to explore his real-life heroism.
Reeve started his career on the stage, studying at the prestigious Juilliard School and living with comedian Robin Williams. The pair had a friendship that was “more like a brotherhood,” said Reeve’s son Matthew. Reeve was in awe of Williams’ energy and versatility, Matthew Reeve said, but audiences quickly clued into Reeve’s own star power when he took on the role of the Man of Steel.
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To his children, though, he “was just dad,” Matthew Reeve said. The documentary explores how Matthew Reeve and his sister Alexandra Reeve Givens grew up watching their dad take the stage as Superman. “Super/Man” also reveals their heartbreak over their parents’ breakup and the joy they found when Reeve re-married. He tied the knot with Dana Reeve in 1992, and the pair welcomed another child, William Reeve, later that year.
“Dana was sunshine,” Alexandra Reeve Givens recalled. “She just brought joy with her wherever she was and could find it even in the darkest moments.”
Those dark moments came suddenly, when in 1995, a near-fatal horseback riding accident left Reeve paralyzed from the neck down. The documentary allows viewers to see, for the first time, what went on out of the public’s view. Reeve can be heard talking about how he “ruined (his) life and everybody else’s,” but in a touching moment, old friend Robin Williams is seen visiting him in the hospital.
“Robin showed him ‘Hey, you’re still you,'” Alexandra Reeve Givens said. “‘You still have this foundation of friendship and people around you, who adore you. And you’re going to find those fun moments in life again.'”
That support from friends and family re-ignited Reeve’s legacy of activism. He made appearances at the Democratic National Convention and the 68th Academy Awards in 1996, about a year after the accident. Matthew Reeve said watching his father address his industry peers at the Oscars was “one of (his) most proud moments.”
“It was just a production for him to get out of bed every morning, let alone get across the country and go out in public for the first time,” Matthew Reeve said. “It was a big deal. It was a big deal to him, but it was also a big deal to the entire disability community. We stayed up in London till like three in the morning to watch that live. It’s a fond memory.”
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Reeve also went on to launch what would become the Christopher and Dana Reeve Foundation, which is dedicated to advancing research into spiral cord injury and help individuals and families impacted by paralysis. It was his dad’s mission to find a cure, Matthew Reeve said, while his stepmother wanted to focus on improving the lives of paralyzed people and their families. The foundation and Reeve’s platform helped bring unprecedented attention and funding to spinal cord injury research.
Reeve even kept acting and realized his lifelong dream of directing with the 1997 HBO movie “In the Gloaming.” Reeve died in 2004 from heart failure at 52.
“There is a huge amount of great actors and actresses out there, where their filmography might be amazing and what they achieve on a cultural level might be amazing, but have they actually achieved anything really as a human that moves the needle for our society?” said filmmaker Ian Bonhote, who made the documentary with Peter Ettedgui. “And Chris has done both things.”
“Super/Man: The Christopher Reeve Story” will open in theaters on Friday, Oct. 11.
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