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How much interest would a $15,000 CD earn in 3 years?
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Are you looking for a good place to store $15,000 that’s both safe and provides a meaningful return? Certificates of deposit (CDs) are compelling savings vehicles. They typically offer stronger returns than traditional savings accounts, but they’re just as safe. In fact, just like a savings account, most CDs come with FDIC or NCUA insurance on balances up to $250,000.
So, what’s the difference?
When you deposit money into a CD, you’ll need to wait until the account’s term ends to access it or you may pay a penalty. But, there’s a bright side to that. As inflation cools and interest rate cut expectations circulate, CDs give you a way to lock in today’s strong interest returns for years to come.
So, if you’re looking for a home for $15,000 in savings, you should strongly consider a 3-year CD. Not only will you earn a meaningful return, you’ll be able to count on that return for the next three years. But, how much money would you actually make? That’s what we will calculate below.
Earn a strong return by opening a 3-year CD now.
How much interest would a $15,000 CD earn in 3 years?
“Since the Federal Reserve has raised the benchmark interest rate several times to fight inflation, it has helped CD rates,” explains Steve Azoury, ChFC, and owner of the financial services firm Azoury Financial. So, what can you expect to earn on a $15,000 3-year CD?
Some of the highest paying 3-year CDs on the market are paying between 4.50% and 4.61% APYs. Here’s how much you would earn by depositing $15,000 into one of these accounts:
- A 3-year CD at 4.61% APY: Your account would generate $2,171.60 in interest over its 3-year term. That means your total balance would be $17,171.60 at the end of your term.
- A 3-year CD at 4.50% APY: Your account would generate $2,117.49 in interest over its 3-year term. That means your total balance would be $17,117.49 at the end of your term.
So, depending on the the APY you lock in, you could earn anywhere from $2,117.49 to $2,171.60 in interest by opening a 3-year CD with a $15,000 deposit today. But, you may want to act quickly. “Locking it in now, if you’re anticipating rates going down, would be beneficial,” says Azoury.
Open a 3-year CD now so you don’t miss out on today’s high rates.
Here’s how much you would have made by depositing $15,000 into a 3-year CD in June 2021
To truly understand the importance of locking in a high, long-term CD rate now it helps to look to the recent past. Specifically, what do those high interest rates mean in terms of actual returns when compared to rates experienced just a few years ago?
According to the Federal Reserve Bank of St. Louis, a 3-year CD paid 0.35% APY in June of 2021. At that rate, your CD would earn just $158.05 in interest over its 3-year term, bringing the total account value to $15,158.05 upon maturity.
So, by opening a $15,000 3-year CD with a leading financial institution today, you’ll earn between $1,959.44 and $2,013.55 more than you would have earned by opening a 3-year CD three years ago.
Earn a meaningful return with a 3-year CD today.
The bottom line
You can earn more than $2,100 in interest by opening a $15,000 3-year CD with leading financial institutions at the moment. That’s more than 10 times more interest than you would have earned by opening a similar account just three years ago. And, with inflation cooling and interest rate cuts expected ahead, it may be a good time to take advantage of today’s high rates while they’re still here. Compare top-paying CDs now.
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The Biden administration is beginning to retaliate against China for its sweeping hack of U.S. telecommunications companies earlier this year.
Last week the Commerce Department issued a notice to China Telecom Americas, the U.S. subsidiary of one of China’s largest communications firms, alleging in a preliminary finding that its presence in American telecom networks and cloud services poses a national security risk. The company has 30 days to respond, although the Commerce Department has not said what action it plans to take next.
The New York Times was the first to report the action, which is a direct response to China’s infiltration of telecom networks earlier this year. The China-backed hacking group known as Salt Typhoon penetrated the networks of numerous companies including Verizon, AT&T and Lumen Technologies, a U.S. official familiar with the matter told to CBS News in October.
It’s unclear what the impact on China Telecom would be, since the FCC has already limited China Telecom Americas’ ability to operate in U.S. communications infrastructure. In October 2021, the FCC revoked its license to provide phone services in the US.
The FCC found that China Telecom “is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight.”
China Telecom Americas has not responded to requests for comment.
U.S. law enforcement and intelligence officials are continuing to try to learn more about the scope of the hack, which targeted U.S. surveillance capabilities used for operations including wiretaps. U.S. intelligence officials routinely seek court authorization to use telecom systems like those targeted in the breach to collect information for law enforcement or national security probes.
One fear is that the cyberattacks could have allowed the hackers to access information about ongoing U.S. investigations — including those tied to China — through the collection of sensitive data and techniques.
China’s incursions into U.S. critical infrastructure — including water treatment plants and the electrical grid — have lawmakers on Capitol Hill and the incoming Trump administration warning of a more aggressive retaliatory posture going forward.
Rep. Mike Waltz, designated by President-elect Trump to be national security adviser, told Margaret Brennan on “Face the Nation” Sunday, “We need to start going on offense and start imposing, I think, higher costs and consequences to private actors and nation state actors that continue to steal our data, that continue to spy on us.”
Last month, Rep. Jim Himes, Democrat of Connecticut and the ranking on the House Intelligence Committee, issued a similar warning.
“We’re not just going to name and shame,” he said on “Face the Nation.” “We are going to go into their networks and give as good as we got.”
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