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How much interest would a $5,000 long-term CD make now?
Certificate of deposit (CD) accounts are a safe and predictable way to grow your money. Thanks to a locked interest rate that will remain the same for the full CD term, many have turned to CDs in recent years to help protect their funds in an inflationary environment. With CD terms ranging from three months to five years or longer, there are a multitude of options available, all with competitive rates that are many times higher than what can be secured with a traditional savings account.
In today’s changing economic climate, however, in which inflation has significantly fallen and interest rate cuts appear likely, many savers could benefit by opening a high-rate, long-term CD now. Before getting started, however, it behooves savers to crunch the numbers to see exactly how much interest they could earn. This is critical to understand as a withdrawal before the CD’s maturity date could result in having to pay a penalty. To that end, below we’ve calculated exactly how much interest a $5,000 long-term CD would make if opened now, timed to a variety of different terms and available rates.
Start earning more money with a top long-term CD here now.
How much interest would a $5,000 long-term CD make now?
While a larger deposit will lead to a bigger return on a CD, a $5,000 deposit could be a safe way to capitalize on today’s rate climate while still leaving the majority of your funds readily accessible. Here’s how much interest you can expect to make based on different rates and terms now:
- 18-month CD at 5.00%: $379.65 for a CD total of $5,379.65 after 18 months
- 2-year CD at 4.76%: $487.33 for a CD total of $5,487.33 after two years
- 3-year CD at 4.61%: $723.87 for a CD total of $5,723.87 after three years
- 5-year CD at 4.50%: $1,230.91 for a CD total of $6,230.91 after five years
- 10-year CD at 3.75%: $2,225.22 for a CD total of $7,225.22 after 10 years
Start earning more on your money with a high-rate CD now.
Why a long-term CD is better than a high-yield savings account now
Some savers may like today’s high CD rates but are hesitant to open one and lose access to their money, no matter how much they initially deposit. In these circumstances, they may instead turn to high-yield savings accounts, which have interest rates almost as high as the best CDs, but still work like regular savings accounts, allowing users to withdraw and add money as needed.
But this could be a mistake.
With the prospect of interest rate cuts growing, a high-yield savings account may soon prove to be less profitable than CDs. That’s because rates on the former are variable and subject to change as the rate climate shifts, while CD rates are locked for the full CD term, whether or not rates rise or fall during that time. So, if you want to earn a larger and more reliable return, a CD is the smarter way to do so right now.
The bottom line
If you deposit $5,000 in a long-term CD now, you can earn hundreds and potentially thousands of dollars, depending on the rate and lender you ultimately use. And those earnings will be locked and predictable, which is a major advantage in today’s changing rate climate, making it preferable to high-yield savings accounts for many users. To earn these high rates, however, savers will need to shop around to find a lender offering the best rates and terms — and they should do so quickly, with the prospect of even slight rate changes to come as soon as this summer.
Start shopping for CDs online now.
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9/27: CBS Evening News – CBS News
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Mark Robinson, North Carolina GOP gubernatorial candidate, treated for burns, campaign says
Embattled Republican North Carolina Lt. Gov. Mark Robinson — whose gubernatorial bid has been rattled by allegations that he previously posted racist and sexually explicit comments online — was hospitalized with burns Friday, his campaign said.
Mike Lonergan, a campaign spokesperson, told CBS News in a statement late Friday night that the 56-year-old Robinson was “currently being treated for burns following an incident at a campaign event in Mt. Airy.”
Lonergan added that Robinson was in “good spirits,” but did not provide any further details on his condition or the circumstances that prompted.
A source close to the campaign told CBS News that Robinson had been hospitalized.
This follows a bombshell CNN report last week which found that Robinson posted inappropriate comments to the message board of a pornographic website between 2008 and 2012, often under the name of “black NAZI.”
Since the report’s publication on Sept. 19, Robinson has seen several campaign staffers resign, including his campaign manager, general consultant and senior adviser, finance director, and deputy campaign manager. He has also appeared to lose support among the Republican leadership.
Robinson has not appeared in the two North Carolina rallies Trump has held since the CNN report. And when asked Thursday by reporters if he would pull his endorsement for Robinson, Trump responded, “I don’t know the situation.”
When asked Tuesday if Republicans should halt support for Robinson’s campaign, Senate Minority Leader Mitch McConnell responded, “It won’t surprise to you know I’m happy that there’s not a Senate race in North Carolina.”
Robinson, however, has so far vowed to stay in the race.
“This is an election about policies, not personalities,” he wrote on social media Wednesday. “Now is not the time for intra-party squabbling and nonsense.”
Kaia Hubbard and
contributed to this report.
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Helene blamed for over 40 deaths; millions without power
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