Here’s How Much You’ll Earn If You Deposit $2,000 Into This Deposit Today

Making sure your money is working for you is key to any sound financial plan. One way to do this is to maximize your interest rate potential with a certificate of deposit. A CD is a way to earn a guaranteed return on your investment over a set period of time or term, with the best rates still exceeding 5% annual percentage rate, or APY.

CD rates are falling, but you can still lock in a competitive rate for the full term. So even if rates drop, your rate won’t change until your deposit matures. If you have some cash in a low-interest account and can afford to put it aside for a certain period, now is the time to open a deposit.

For example, if you have $2,000 to deposit, let’s see how much you could earn by investing in one of the highest-interest deposits: CommunityWide Federal Credit Union’s 1-Year Deposit.

If you put $2,000 into a CommunityWide Federal Credit Union one-year CD—which has one of the highest APY rates available today at 5.00% APY—you’ll earn $100 when your CD term ends. Keep in mind, though, that your return will vary depending on how much money you put in and how long the term is.

Other deposit amounts

Here are some examples of whether you should put more or less than $2,000 into a CommunityWide Federal Credit Union one-year term deposit. (Note: CommunityWide Federal Credit Union’s minimum deposit requirement is $1,000 for all term deposit periods.)

CD deadline	Amount paid	APY	Interest Earned	Balance at maturity
1 year	500 dollars	5.00%	25.00 PLN	525.00 PLN
1 year	1000 dollars	5.00%	50.00 PLN	$1,050.00
1 year	2000 dollars	5.00%	100.00 PLN	2,1060.00 dollars
1 year	5000 dollars	5.00%	250.00 PLN	$5,250.00
1 year	10,000 dollars	5.00%	500.00 PLN	$10,500.00

Other CD terms

CommunityWide Federal Credit Union offers five longer CDs, including 18-month, 36-month and 60-month CDs. Here’s how much you could earn on each if you deposit $2,000:

CD deadline	Amount paid	APY	Interest Earned	Balance at maturity
18 months	2000 dollars	4.50%	136.51 PLN	$2,136.51
24 months	2000 dollars	4.25%	173.61 PLN	$2,173.61
36 months	2000 dollars	4.00%	249.73 PLN	$2249.73
48 months	2000 dollars	3.80%	321.77 PLN	$2,321.77
60 months	2000 dollars	3.60%	386.87 PLN	$2,386.87

Other High-Demand CDs You Might Want to Consider

CDs offer benefits in any rate environment. However, today’s top CD rates are likely the highest they’ve been all year, but you can still secure high APYs and protect your earnings from future rate changes. If you have money earmarked for a specific purpose that you won’t need access to for months or years, now is the time to lock in a high rate.

Here are some other high-yield CDs to consider. We’ve listed how much you’ll earn when the CD matures if you deposit $2,000:

Deadline	Highest APY	Bank	Interest accrued	Balance at maturity
1 year	4.91%	Connexus Credit Cooperative	98.20 PLN	2098.20 dollars
1 year	4.90%	Limelight Bank	98.00 PLN	$2,098.00
1 year	4.90%	Basque Bank	98.00 PLN	$2,098.00
1 year	4.80%	America First Credit Union	96.00 PLN	$2,096.00

How to Choose the Right CD for You

When you’re ready to open a CD, you should look at more than just APY. Here are some factors to consider when comparing CD accounts:

• When you need money: For a CD to work well with your financial goals, you need to consider how long you can keep your money on deposit. If you have to withdraw your money from the CD before the end of the term, you’ll pay an early withdrawal penalty that can be several weeks or months of interest. This can eat into your interest earnings, so make sure you choose a CD term that fits your savings schedule.
• Minimum deposit required: Some banks require a minimum balance, which can be anywhere from $500 to $1,000. But some banks don’t. Look for a bank that works well with the amount you need to deposit.
• Fees: Most online banks don’t charge monthly account fees because they have less overhead than brick-and-mortar banks. Still, read the fine print so you’re not surprised by any fees when you open a CD.
• Federal Deposit Insurance: CDs at banks insured by the Federal Deposit Insurance Corporation and credit unions insured by the National Credit Union Administration are protected for up to $250,000 per person, per account category. Make sure the bank you’re considering is insured by the FDIC or NCUA so your money is protected if the bank or credit union goes bankrupt.

Are CDs still worth the hype surrounding them?

CD rates have been rising steadily since March 2022 as the Federal Reserve raised the benchmark federal funds rate to combat record inflation. When the Fed raises the rate, banks typically follow suit to stay competitive and boost cash flow. As a result, savers have been able to enjoy high rates on consumer products like CDs and savings accounts. At one point, the highest CD rates we track at CNET were as high as 5.65% APY for select periods.

However, after 11 rate hikes, the Fed paused interest rate hikes in July 2023 as inflation began to show signs of cooling, and has held them steady since then. In response, CD rates began to plateau and have been trending lower since the fourth quarter of 2023.

With the latest Consumer Price Index Report showing inflation approaching the Fed’s 2% target, experts predicted a cut at the Fed’s September 17-18 meeting — a prediction that proved true. As a result, APYs — which have been falling faster in recent weeks as banks anticipated a cut — are likely to fall even more.

However, because the interest rate is fixed at the time you open the deposit, opening a deposit can protect your gains from future declines in interest rates.