Have you recently thought about opening a certificate of deposit (CD)? In today’s high interest rate environment, short-term CDs (with terms of 12 months or less) offer meaningfully higher returns than their long-term counterparts. Moreover, since they have short terms, you’re less likely to miss out on the potential for better, higher rates in the future. 

But what do today’s CD rates mean in terms of dollars and cents? How much money do you stand to make in six months if you open a CD at a 5.30 rate%? That’s what we will calculate below.

Open a CD now to take advantage of today’s high rates.

What will a 5.30% CD interest rate earn in 6 months?

When you look for a place to store idle cash, it’s best to look for the options with the highest returns. When it comes to 6-month CDs, one of the highest paying options is offered by Popular Bank with an APY of 5.30%, although there may be other options if you shop around online now. 

But what does that mean in terms of profits? Your potential earnings depend on how much money you deposit. Here’s how much money you can make by opening a 6-month CD with a 5.30% APY based on varying opening deposit amounts: 

• $1,000 opening deposit: $26.16 (for a total balance of $1,026.16 after six months)
• $2,500 opening deposit: $65.39 (for a total balance of $2,565.39 after six months)
• $5,000 opening deposit: $130.79 (for a total balance of $5,130.79 after six months)
• $7,500 opening deposit: $196.18 (for a total balance of $7,696.18 after six months)
• $10,000 opening deposit: $261.58 (for a total balance of $10,261.58 after six months)
• $15,000 opening deposit: $392.37 (for a total balance of $15,392.37 after six months)
• $20,000 opening deposit: $523.16 (for a total balance of $20,523.16 after six months)
• $25,000 opening deposit: $653.95 (for a total balance of $25,653.95 after six months)

Don’t let returns like this slip away. Open a 6-month CD now to earn more on your idle cash. 

Why you should open a 6-month CD now

There are multiple reasons to open a 6-month CD right now, including: 

• 6-month CD returns are high: “Rates of CDs are currently higher now because the Federal Reserve has raised rates several times over the last two years,” explains Steve Azoury, ChFC and owner of Azoury Financial. “There are indications that the rate increase will stop soon, so if you want the higher rates, now might be the time to lock them in.”
• CDs are generally safe: CDs are “a safe, riskless investment with a modest return,” says Azoury. These accounts are typically safe because they usually come with FDIC or NCUA insurance on balances up to $250,000. Moreover, CD returns are fixed; and therefore, they’re not subject to the ebbs and flows of the financial market.   
• Planning for the winter holidays: “If you would like to park your money for a short time, a 6-month CD would be a good option,” says Azoury. CDs require you to keep your money in the account for its entire term or potentially face an early withdrawal penalty. That could help you reach your holiday savings goals. After all, if you put the money you plan on spending during the holidays into a 6-month CD today, that CD will mature just in time for holiday shopping. And you’ll be less likely to use the money early thanks to the penalties. 

Take advantage of the perks associated with opening a 6-month CD now. 

The bottom line

In today’s high interest rate environment, you could earn a meaningful return by investing in a six-month CD right now. Moreover, these accounts are generally safe and give you a compelling way to save for your short-term goals. Compare your 6-month CD options now to enjoy these advantages. 

Joshua Rodriguez

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.