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How much interest would a $2,500 CD earn in 1 year?
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If you’ve been looking for an effective way to protect and grow your money in recent years, there have been few options available.
Thanks to inflation and an elevated interest rate environment, Americans have had to shop around to find ways to grow their money effectively. Two such ways have been with traditional savings vehicles, namely high-yield savings and certificates of deposit (CD) accounts. Both come with high interest rates right now and both ensure that the principle amount of money deposited will remain untouched, regardless of any broader economic conditions.
CDs, especially, offer unique benefits right now, thanks to a locked interest rate and higher-than-usual interest rates.
Those considering this account now, however, could benefit from acting promptly, with interest rate cuts looming. Even a small deposit of $2,500 into a CD would be better than keeping it in a regular savings account with an average rate under 1% right now. To better determine why a $2,500 deposit in a CD makes sense, however, it helps to first know what you stand to make. Below, we’ll calculate that for you, timed to the popular short-term, 1-year CD account.
See how much more money you could be earning with a CD here now.
How much would a $2,500 CD earn in 1 year?
The amount of money you will earn on a 1-year CD is determined by a series of factors. This includes the deposit made, the interest rate the lender offers and the term, or length of the CD. It can also be affected by early withdrawal penalties, if you decide to take back your money before the maturity date. Below, we calculated the interest you could earn with a $2,500 deposit using some available 1-year CD rates (early withdrawal penalties were not accounted for). Here’s what to expect:
- 5.10%: With a $2,500 deposit at this rate you’d earn $127.50 upon CD maturity, growing your funds to a total of $2,627.50.
- 5.15%: With a $2,500 deposit at this rate you’d earn $128.75 upon CD maturity, growing your funds to a total of $2,628.75.
- 5.20%: With a $2,500 deposit at this rate you’d earn $130.00 upon CD maturity, growing your funds to a total of $2,630.00
Start earning more on your money with a top, 1-year CD here now.
Don’t forget about taxes
CD account interest can be substantial, boosting your savings in a predictable and safe manner. But the interest you earn on these accounts isn’t exempt from taxes. It will be reported as income earned on your return, so you’ll need to account for that when filing for the tax year you had your CD.
Even if your CD has yet to mature, you’ll still need to report the interest earned during the year it was active. While there are creative ways to help mitigate this — from opening an HSA CD to a 529 CD or more — savers should still go into the process knowing that any money earned won’t be immune from the typical tax ramifications they’re used to.
The bottom line
A $2,500 deposit into a 1-year CD could earn you upwards of $120 and, thanks to the limited deposit, won’t necessarily hamper you from making other deposits in other accounts (or other investments, in general). But interest rates are evolving and today’s rates won’t remain this high forever, underlining the importance of these CDs now. So strongly consider making your deposit now while you can still lock in a 1-year CD rate over 5%.
CBS News
Kamala Harris will speak with “60 Minutes” tomorrow. Here’s what to know for the interview.
Voters will get the chance to hear from Vice President Kamala Harris on Monday as she presents her case for why she should be president in a “60 Minutes” election special.
For decades, “60 Minutes” has featured both Republican and Democratic nominees for presidents, but this year, former President Donald Trump backed out after previously indicating he would be on the show. Correspondent Scott Pelley, who’d been set to interview Trump, will instead travel to Arizona’s Maricopa County, home to more than 60% of Arizona’s voters and a critical battleground in a key swing state.
One thing is certain about the election; with the U.S. deeply involved in both the wars in Ukraine and the Middle East, whoever wins on Nov. 5 will become a wartime president.
What Harris will discuss
Israel’s war started one year ago after Hamas launched a surprise terror attack and correspondent Bill Whitaker will discuss the ongoing war with Harris.
Harris will also discuss the economy, immigration, her record as vice president and the differences between herself and Trump.
Democratic vice presidential candidate Gov. Tim Walz will also appear.
Whitaker joined the Democratic ticket on the campaign trail this week to gain insight into their platform’s priorities and values, and what the candidates believe voters should know.
Why Trump pulled out of the “60 Minutes” interview
Leading up to the candidate hour, Trump, through campaign spokespeople, was the first candidate to accept the “60 Minutes” request to be interviewed for the special, according to CBS News. It had been agreed that both candidates would receive equal time during the broadcast.
Trump last sat down with 60 Minutes in 2020. He walked out during the interview with Lesley Stahl. Trump referenced the incident on Tuesday night at a Milwaukee press conference when asked about his decision not to participate in the Oct. 7 “60 Minutes” election special.
“Well, right now, I went to – they came to me and would like me to do an interview, but first I want to get an apology, because the last time I did an interview with them, if you remember, they challenged me on the computer,” Trump said. “They said the ‘laptop from hell’ was from Russia, and I said it wasn’t from Russia. It was from Hunter, and I never got an apology, so I’m sort of waiting. I’d love to do ’60 Minutes.’ I do everything.”
The Republican nominee for president emphasized that he felt he was owed an apology from “60 Minutes.”
“Let’s see if they do it. I wouldn’t mind doing 60,” Trump continued. “I’ve done ’60 Minutes’ a lot.”
In a statement on Tuesday, Trump campaign communications director Steven Cheung said that Trump’s team had not agreed to an interview.
“Fake News,” Cheung said in a post on X. “60 Minutes begged for an interview, even after they were caught lying about Hunter Biden’s laptop back in 2020. There were initial discussions, but nothing was ever scheduled or locked in. They also insisted on doing live fact checking, which is unprecedented.”
Previous Trump, Harris appearances on 60 Minutes
Trump previously sat down with “60 Minutes'” Mike Wallace in 1985, Pelley in 2015 and Lesley Stahl twice in 2016, first in July of that year and then again in November of 2016. He also spoke with Stahl again in 2018 and 2020.
Harris previously sat down with Whitaker last year. She also was interviewed by Norah O’Donnell, “CBS Evening News” anchor and “60 Minutes” contributing correspondent, in 2020.
How to watch the “60 Minutes” election special
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