If you put $10,000 into a deposit, here’s how much you’ll earn

Today, the best certificates of deposit offer annual percentage yields, or APYs, above 5%. And unlike savings accounts, which have variable rates, your CD’s interest rate is locked in when you open the account. As APYs fall, that means opening a CD now can protect your earnings from future rate declines.

So how much can you make by locking in a high-rate CD now? Most people don’t have an extra $10,000 to invest, but when you look at a round number like this, it’s easy to see how much you could earn over time. We’ll also show you how much you could earn by depositing smaller amounts and share some tips to help you build your nest egg.

How much can you earn by depositing USD 10,000?

Here’s how much you could earn if you deposit $10,000 into a six-month, one-year, three-year and five-year term. We calculate your return based on the highest APYs currently available for each term, based on the banks we track at CNET.

Deadline	Highest APY	Bank	Interest Earnings	CD Value at Maturity
6 months	5.35%	Emerging Bank	264.01 PLN	$10,264.01
1 year	5.35%	NexBank Bank	535.00 PLN	$10,535.00
3 years	4.66%	First Internet Bank from Indiana	$1,464.16	$11,464.16
5 years	4.55%	First Internet Bank in Indiana	$2,491.66	$12,491.66

The national average for a one-year CD is 1.81% APY, while the average one-year CD based on the banks we track at CNET is 4.97% APY. If you put $10,000 into a one-year CD that pays the national average of 1.81% APY, the value at maturity would be $10,181. However, if you put $10,000 into a one-year CD that pays 5.35% APY (the highest APY on our list), it would be worth $10,535 at maturity.

Don’t have $10,000? No problem. Here’s what you can earn with a smaller deposit

You don’t have to have $10,000 on hand to get competitive interest rates on your savings. Most of the CD accounts on our list don’t require a minimum deposit to lock in a high CD rate. Here’s what you could earn with other deposit amounts:

Deadline	Highest APY	Deposit $500	Deposit $1000	Deposit $2500	Deposit $5000
6 months	5.35%	13.20 PLN	26.40 PLN	66.00 PLN	132.01 PLN
1 year	5.35%	26.75 PLN	53.50 PLN	$133.75	267.50 PLN
3 years	4.66%	73.21 PLN	146.42 PLN	366.04 PLN	732.08 PLN
5 years	4.55%	$124.58	249.17 PLN	622.92 PLN	$1,245.83

How is interest calculated on a term deposit?

When you open a CD, APY refers to the actual rate of return you’ll earn on your deposit over the course of a year. APY reflects compound interest, meaning you’re not just earning interest on your initial deposit – your interest is also earning interest.

Some banks capitalize interest daily, while others capitalize interest monthly, quarterly, or semi-annually. The more often interest is capitalized, the more money you will make.

You can use a compound interest calculator to figure out how much your money could grow in a CD. We recommend using this calculator from the U.S. Securities and Exchange Commission.

Still growing your savings? A high-yield savings account can help

CDs are a great option if you already have money saved that you don’t need to touch for a certain period of time. But most of us don’t have a few thousand lying around that we can part with for a few years in exchange for a fixed interest rate. And that’s OK.

A high-yield savings account or money market account that earns a competitive APY is your best bet if you’re still building an emergency fund, working toward your savings goals, or looking to withdraw money when you need it. These accounts let you build savings when you can while still having access to the money when you need it.

Depositing just $100 a month can help you save up to $1,200 a year. If you can contribute more, say $250 a month, you could build up a $3,000 emergency fund in a year. And that’s not counting the interest you’ll earn on your savings. Although savings accounts have variable interest rates—meaning they can go up and down depending on the economy and your bank’s decisions—experts predict that savings rates will remain high all year long. You can currently earn more than 5% on some high-yield online savings accounts.

Growing a savings account takes time. Focus on what you can contribute and get into the habit of saving so that it becomes a routine. You can also use automated savings tools like rounding up and automatic transfers to grow your savings a little faster without taking up your time. CNET Money editors are big fans of Ally Bank’s automated savings features, but many online banks also offer helpful savings features.