Here's how much interest a $40,000 5-year CD account can earn savers now
Opening a $40,000 5-year CD account now could be a smart choice for savers. Here's how much interest they'd earn.
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August 24, 2026 / 10:52 AM EDT / CBS News
A lot can happen to your finances over a multi-year period. So, locking it away for an extended time, such as five years, may not be advantageous on the surface. And that's what you'll be required to do with a certificate of deposit (CD) account . CDs have high, fixed interest rates offering savers big returns in today's elevated interest rate climate. To secure that interest, however, they'll need to commit to leaving their money frozen in the account for the full term . An early withdrawal penalty can easily negate all of the interest earned on the account to that point.
So, if you're going to deposit a large, five-figure amount of money into a long-term CD, you'll want to make sure it's worth it. Fortunately, this is easy to determine thanks to the account's fixed rate. Whether you're looking to deposit $10,000 or as much as $40,000, then, you'll be able to determine exactly how much you'll earn in advance, before making any transfers. What will that look like with a $40,000 5-year CD opened in today's climate, then? That's what we'll calculate below.
See how much interest you could be earning on your money with a CD account now .