How Much $10,000 Could Earn in a CD

How Much You Can Earn With a $10,000 CD

At today's average one-year CD rate of 2.48%, based on Curinos data, you could earn $248 in interest on a $10,000 CD in one year. With a five-year CD currently averaging 1.96%, your earnings would grow by $1,019 to $11,019.

While the average one-year CD rate is 2.48%, some banks offer even more competitive rates to attract customers. Many of the best CD rates right now offer yields of over 4%. For example, at the time of this writing, competitive rates on 12-month CDs are about 4%. At this rate, you could earn $400 in interest on a $10,000 deposit in a year.

^*Source: Curinos, August 2025; interest based on annual compounding

Benefits of a CD vs. Savings Account

Technically speaking, CDs are savings accounts. But a CD can provide returns that are higher than regular or even high-yield savings accounts. Here's how CDs stack up:

• CDs pay higher interest than traditional savings. Traditional savings accounts offer sub-1% interest rates on deposits, according to the Federal Deposit Insurance Corp. (FDIC). The average rate on a one-year CD can be multiple times higher than the interest rate on regular savings.
• Rates are competitive when comparing CDs versus high-yield savings accounts. However, like traditional savings accounts, high-yield savings accounts have variable interest rates. If yields fall due to Federal Reserve rate cuts (or other economic factors), so will the rates on many types of savings accounts. CDs pay guaranteed returns, meaning your APY stays put even when current interest rates drop.

Are CDs Safe?

CDs are considered a safe investment. CDs held at a bank are insured up to $250,000 per depositor, institution and ownership category by the FDIC. If your bank fails, the FDIC will reimburse your funds automatically. Share certificates at a credit union are similarly insured by the National Credit Union Administration (NCUA).

It's hard to lose money on a CD, though you might if you choose a financial institution that isn't insured, or if your deposits exceed FDIC or NCUA limits. Outside of bank failure, your biggest risk might be incurring an early withdrawal fee if you take your money out of your CD before it matures. Choose your CD term carefully to avoid making early withdrawals.

Top Strategies to Maximize CD Earnings

CDs provide relatively high APYs while balancing out volatility. To get the most out of your CD investments, consider these strategies to maximize earnings:

1. Lock In a High APY

Predictable, guaranteed returns are a key benefit to investing in CDs, but they may be even more advantageous when interest rates are declining. Locking in a high APY now could help you enjoy today's high interest even if rates fall tomorrow.

2. Diversify With a CD Ladder

To create a CD ladder, divide your total CD investment into parts and invest each part in a CD with a different term: one-year, two-year, three-year and five-year, for example. With a CD ladder, a portion of your money matures on a predictable basis, so you can reinvest it or use it elsewhere as you see fit. You'll also spread your investment out over different terms and rates, so you can enjoy the relative benefits of each.

3. Consider a CD Barbell

A CD barbell is a simpler version of a CD ladder. You split your CD investment in two and put half in a long-term CD and half in a short-term CD. This approach allows you to take advantage of interest rate trends—long-term versus short-term rates, and rising or falling rate environments—without betting on a single outcome.

4. Save More Cash in CDs

You'll earn more in a CD than you will in regular savings, so consider moving more cash into CDs. Note that putting your money into a fixed-term CD ties it up, and even high returns on a CD may not be a match for long-term returns on investments like stocks or mutual funds. For this reason, CDs aren't always a good place to keep emergency savings or money you plan to keep invested for the long term, such as retirement funds.

5. Compare Rates to Get the Best Return

CD rates are not created equal. The difference between the CD rate you can get from your existing bank and the most competitive rate available may be significant. Take the time to shop around and find the best CD rates, then make your choice accordingly.

Learn more: How to Invest in CDs

The Bottom Line

CDs are a safe place to earn guaranteed returns on your money. However, the amount you'll make on a $10,000 CD can vary considerably, depending on how competitive the interest rate is on the CD you choose.

If you're thinking about opening a CD with a $10,000 investment, take a moment to learn more about where interest rates may be heading. Compare rates at multiple banks, online banks and credit unions to find a top APY you can lock in for your CD's full term.