How much interest will you earn on a $5,000 CD right now?

Certificates of deposit (CDs) have carved out a sweet spot in today’s financial landscape. While CD rates have cooled slightly from their recent peaks, they’re still delivering respectable returns in the 4% range, which is a far cry from the near-zero rates savers endured just a few years ago. And, unlike the unpredictability of stock market returns or the uncertainty of variable-rate savings accounts, CDs offer something increasingly valuable: predictability. Once you lock in a rate, that’s what you’ll earn regardless of what the Federal Reserve does next.

For savers working with a $5,000 deposit, CDs, in particular, present an attractive middle ground between accessibility and earnings potential. This amount falls well within the FDIC insurance limits while being substantial enough to generate meaningful interest over time. It’s also a common target for emergency funds or short-term savings goals, and unlike savings accounts that can fluctuate in rates, a CD locks in a guaranteed return for a set period. That means even a modest deposit, like $5,000, can still earn meaningful interest.

And with economists widely expecting the Federal Reserve to lower rates before the end of 2025, locking in today’s CD rates could prove to be a smart move. Before committing your $5,000 to a term that could last anywhere from three months to five years, though, it’s worth crunching the numbers to see what each option actually delivers.

Find out how much you could earn with the right CD account today.

How much interest will you earn on a $5,000 CD right now?

The interest earnings on a $5,000 CD deposit vary significantly based on the term you choose, and current market rates make some terms more attractive than others. Here’s what your money could earn across popular CD terms, assuming you avoid early withdrawal penalties and let your CD reach full maturity:

3-month CD at 4.30% APY

A 3-month CD is the shortest-term option and can be ideal if you want to keep your cash accessible. At 4.30% APY, a $5,000 CD would earn roughly $53 over three months. That’s not a huge amount, but it’s a guaranteed return, and you’re free to reinvest or move the money after the term ends. These types of short-term CDs are especially appealing right now for cautious savers who want to test the waters in a higher-rate environment. They give you the flexibility to roll your money into another CD if rates climb, without being locked in long-term. 

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6-month CD at 4.45% APY

If you’re willing to leave your $5,000 untouched for six months, you could earn about $111 in interest at today’s rates. The slightly higher APY makes the 6-month CD an appealing middle ground — you earn more than the 3-month CD option, but you’re not committing your funds for a full year. This CD term can be a smart choice if you think you’ll need access to your cash later this year, for example, to cover seasonal expenses or anticipated large purchases. 

1-year CD at 4.30% APY

Locking in your $5,000 for a full year would yield around $215 in interest. A 1-year CD is a solid option for those who want a guaranteed return that comfortably beats most high-yield savings accounts. This term gives your money time to grow at a competitive rate, yet it won’t tie it up for too long. For people trying to maximize earnings without long-term commitment, the 1-year term offers a reliable, predictable outcome.

18-month CD at 4.16% APY

An 18-month CD provides roughly $312 in interest at today’s rates. The APY on this term is slightly lower than the 1-year CD, but the longer term allows the interest to accumulate over a year and a half. This term is ideal if you don’t need immediate access to your cash but aren’t ready to commit to a multi-year plan. 

2-year CD at 4.10% APY

Over two years, a $5,000 CD would earn around $410 in interest at today’s rates. This CD term may appeal to savers who want to lock in a decent rate for a moderate period without tying their money up for several years. The trade-off is clear, though: The longer commitment means higher cumulative earnings, but you give up some flexibility.

3-year CD at 4.10% APY

A 3-year CD would generate roughly $615 in interest at today’s rates. The rate on this CD is the same as a 2-year CD, but the extra year allows more interest to compound, making the longer-term commitment worthwhile if you don’t need access to your funds. For savers who want to avoid market volatility and guarantee a predictable return, a 3-year CD may be appealing. 

5-year CD at 4.20% APY

The 5-year CD offers the highest cumulative interest of about $1,050 over five years. While this term maximizes guaranteed returns, it’s important to be confident you won’t need the money during that time. That’s why, in general, 5-year CDs are best for long-term savings goals, such as a future down payment, a big purchase or simply to grow funds safely over time. 

The bottom line

A $5,000 CD can generate solid, guaranteed returns in today’s rate environment, with earnings ranging from about $53 for a three-month commitment to over $1,000 for a 5-year CD term. While these returns won’t match the potential gains of riskier investments, they also won’t subject you to market volatility or the possibility of losing principal.

But given the current interest rate environment and future rate change expectations, acting sooner rather than later could be advantageous. Today’s rates may not be available indefinitely, and a CD allows you to lock in current returns regardless of what happens next. Just ensure you won’t need the money before maturity, as early withdrawal penalties could quickly erode any interest gains you make on a $5,000 deposit.