How much will a $10,000 long-term CD make?

Certificates of deposit (CDs) are attractive savings vehicles that give you the option to benefit from today’s high interest rate environment and also lock in high rates for the long term. That’s because when you open one, you commit to leaving your money alone through the maturity of the account in exchange for a fixed interest rate. 

For many savers, that’s a smart deal considering the impressive rate of return you can get on these savings vehicles. But what do the interest returns on CDs mean in dollars and cents? And, if you open a $10,000 long-term CD, how much money can you make?

Open a CD now to make your money work harder for you. 

How much will a $10,000 long-term CD make?

The term length: Long-term CDs usually come with terms that range from two years to five years, though there are some 10-year options available, too. Rates tend to vary based on the CD’s term, so the time frame you choose will have an impact on your earnings. The financial institution: Financial institutions offer different rates on their CDs, and online banks don’t have the same overhead expenses as their brick-and-mortar counterparts. In turn, online banks tend to offer the most impressive returns on long-term CDs.  

Here’s how much you can expect to earn on a $10,000 CD given different maturities and financial institutions (CD rates are current as of November 3, 2023): 

How much will a $10,000 CD make in two years?

Some of the top 2-year CD rates on the market today come from Bread Savings, Popular Direct and First Internet Bank of India. Here’s what your returns would look like with each of these financial institutions:

Bread Savings at 5.00%: $1,025 (for a total of $11,025 after two years)Popular Direct at 4.90%: $1,004.01 (for a total of $11,004.01 after two years)First Internet Bank of India at 4.85%: $993.52 (for a total of $10,993.52 after one year) 

Don’t leave earnings on the table. Open a long-term CD today. 

How much will a $10,000 CD make in three years?

You can access some of the most impressive 3-year CD rates at Popular Direct, Bread Savings and First Internet Bank of India. Here’s what you can expect to earn at each of these institutions on a $10,000 three-year CD: 

Popular Direct at 5.00%: $1,576.25 (for a total of $11,576.25 after three years) Bread Savings at 4.95%: $1,559.72 (for a total of $11,559.72 after three years)First Internet Bank of India at 4.75%: $1,493.76 (for a total of $11,493.76 after three years) 

How much will a $10,000 CD make in five years?

If you choose the five-year term, the highest CD rates are currently available with Bread Savings, Popular Direct and SchoolFirst Federal Credit Union. Here’s how much you’ll earn on a $10,000 CD with each of these financial institutions after five years: 

Bread Savings at 4.75%: $2,611.60 (for a total of $12,611.60 after five years)Popular Direct at 4.65%: $2,551.52 (for a total of $12,551.52 after five years)SchoolFirst Federal Credit Union at 4.60%: $2,521.56 (for a total of $12,521.56 after five years)

Other considerations

Other exciting perks of opening a CD include:

A range of deposit requirements: If you don’t have $10,000 to invest in a CD, that’s OK. There are CDs with minimum deposits that are much lower, meaning that a wide range of savers can access the high returns CDs provide. CD rates are locked in: When you open a CD, your rate is locked in through maturity. So, you’ll enjoy strong returns even if rates go down. CDs are safe: CDs are FDIC-insured deposit accounts. Even if the bank goes out of business, FDIC insurance covers your principal balance. 

It’s also worth noting that depending on your goals, a short-term option may be the better option. At the moment, short-term CDs are offering higher rates than their long-term counterparts. That’s because in today’s high interest rate environment, long-term CDs pose larger risks to financial institutions. So, carefully consider your time horizon before you open a CD. 

Take advantage of the growth, stability, and safety CDs have to offer today. 

The bottom line 

The bottom line is that long-term CDs are attractive savings vehicles for multiple reasons. Not only do they lock in today’s high interest rates, but they also offer a safe way to store and maintain the value of your money. Opening a CD today will allow you to take advantage of a strong mix of safety and returns. 

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