How much will a $5,000 CD make in a year? (2024)

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  • Depending on the bank, a $5,000 CD deposit will make around $25 to $275 in interest after one year.
  • Online banks and credit unions pay appealing CD rates, and you can earn more interest than at big brick-and-mortar banks.
  • When choosing a CD, consider other factors beyond the interest rate of an account.

If you want to open a 1-year CD with a $5,000 deposit, be mindful of your options. Your bank selection will have a big impact on how much your money can grow.

Below, we've calculated how much a $5,000 CD will make in a year. We also explain how to choose the right bank to open a CD.

How much interest would you make on a $5,000 CD?

We estimate that a $5,000 CD deposit can make roughly $25 to $275 in interest after one year. In comparison, a $10,000 CD deposit makes around $50 to $550 in interest after a year, depending on the bank.

Online banks and credit unions offer the best CD rates right now, with many accounts paying above 5% APY (Annual Percentage Yield). The APY tells you how much interest you'll earn on an account after a year. It also factors in compound interest.

The table below shows how the APY can impact the total amount earned in a CD after a year. As you can see, brick-and-mortar financial institutions usually offer less competitive CD rates on 1-year terms.

Type of CD


Interest earned after a year

Total amount in a CD after a year

Best CDs




Average CDs*




National brick-and-mortar CDs**




*For average CD rates, we looked at FDIC data.

**For brick-and-mortar CDs, we calculated the average standard 1-year CD rate between Chase, Wells Fargo, and Bank of America. Since rates vary by location, we used the zipcode 10001 of New York, New York, for all three banks.

How to choose a bank to buy a CD

While the interest rate of a CD can help differentiate many financial institutions, it shouldn't be the sole reason for opening an account.

Here are a few things to consider when deciding where to open a CD.

Variety of bank products and services

One way to dwindle down your banking options is to think about whether you want access to other bank accounts or services.

Some financial institutions offer other types of bank accounts, like checking accounts, high-yield savings accounts, and money market accounts. You might be able to open credit cards or loans, too. Even if you're only looking for a CD now, it may be beneficial to choose a bank or credit union with a variety of products and services so you have access to more options in the future.

Customer support availability

Some financial institutions have limited customer support availability. For example, TotalBankDirect has a high 1-year CD rate, but you can only contact a customer service representative by phone from 8:30 a.m. to 5 p.m. ET on weekdays.

If you find it challenging to contact a bank with limited customer support hours, you could bank with a credit union or bank that has 24/7 customer support.

Federal insurance

Some of the most competitive CD rates right now are available at less well-known financial institutions.

If you come across a bank you haven't heard of before, check to see if the financial institution is FDIC or NCUA-insured first. These federal agencies can protect your money if a financial institution shuts down. Up to $250,000 per depositor, per account ownership category is protected at federally insured financial institutions.

Mobile app access

Not all banks offer a mobile app. For example, BMO Alto pays a high CD rate, but it doesn't have an app.

If you often use a mobile app to review your account, you might prefer a bank with one of the best mobile banking apps.

Other CD features

CDs do not have monthly bank maintenance fees like checking and savings accounts, but they do charge a penalty for taking out money before the term ends.

In addition to early withdrawal penalties, you can also review the account's eligibility requirements. For example, if you open a CD at a credit union, you have to become a member first. Most credit unions also require you to open a savings account to establish membership. If you aren't eligible or don't want to join a credit union, a bank could be a better choice because there won't be any membership criteria.

In all, a $5,000 CD deposit can be a big decision. It's helpful to compare as many banking features as possible so you can find the account that best aligns with your preferences.

How much will a $5,000 CD make in a year? (1)

Sophia Acevedo, CEPF

Banking Editor

Sophia Acevedo is a banking editor at Business Insider. She edits and writes bank reviews, banking guides, and banking and savings articles for the Personal Finance Insider team. She is also a Certified Educator in Personal Finance (CEPF).Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email

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How much will a $5,000 CD make in a year? (2)

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How much will a $5,000 CD make in a year? (2024)


How much will a $5,000 CD make in a year? ›

How much interest would you make on a $5,000 CD? We estimate that a $5,000 CD deposit can make roughly $25 to $275 in interest after one year. In comparison, a $10,000 CD deposit makes around $50 to $550 in interest after a year, depending on the bank.

How much can you make on a $5000 CD? ›

The best rates on a CD today that accept a $5,000 deposit range from 4.70% to 5.50% APY, depending on the term and minimum deposit. Putting $5,000 away in the 2-year CD with a rate of 5.25% could result in close to $500 in interest.

Why should you deposit $5000 in CD now? ›

For context, in 2021, when rates were around their lowest, the national average 12-month CD had an APY of just 0.15%. For a $5,000 deposit, this is the difference between earning $250 in interest over a year versus earning only $7.50 over that same time frame.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year1.81%$181
2 years1.54%$310.37
3 years1.41%$428.99
4 years1.32%$538.55
1 more row
Apr 24, 2024

How much will $5000 make in a high yield savings account? ›

Shopping around for a top APY means you can earn 10 to 12 times more than the national average rate, which is less than half a percent. $5,000 in one of today's best high-yield savings accounts could earn as much as $136 in just six months—compared to about $11 with an average rate.

Is it worth it to put 5000 in a CD? ›

The bottom line. Putting $5,000 in a 1-year CD today can be a prudent financial move, especially when interest rates are as high as they currently are. The combination of competitive returns, safety and predictability makes it an attractive option for individuals looking to grow their savings with minimal risk.

How much does a $5000 CD make in 6 months? ›

For reference, here's how much savers can currently expect to make with a $5,000 CD in six months, with three different interest rates: At 5.50%: $135.66 (for a total of $5,135.66 after six months) At 5.25%: $129.57 (for a total of $5,129.57 after six months)

How much does a $5000 CD make in 5 years? ›

Here's how much money you'll earn on a $5,000 5-year CD at each of these institutions: Bread Savings at 4.75%: $1,305.80 (for a total of $6,305.80 after five years) Popular Direct at 4.70%: $1,290.76 (for a total of $6,290.76 after five years)

Is it worth putting money in a CD right now? ›

If you don't need access to your money right away, a CD might be a good savings tool for you in 2024 while average interest rates remain high. CD interest rates are high in 2024 — higher nationally, on average, than they've been in more than a decade, according to Forbes Advisor.

What is the biggest negative of putting your money in a CD? ›

Banks and credit unions often charge an early withdrawal penalty for taking funds from a CD ahead of its maturity date. This penalty can be a flat fee or a percentage of the interest earned. In some cases, it could even be all the interest earned, negating your efforts to use a CD for savings.

What happens if you put $10,000 in a CD for 5 years? ›

The interest is significant and predictable

Let's say you put $10,000 into a 5-year CD with the rate discussed above – 4.75%. After the 5-year term is up you'll have earned $2,611 in interest for a total account balance of $12,611.

Why should you deposit $10,000 in a CD now? ›

The top nationwide rate in each CD term—from 6 months to 5 years—currently ranges from 5.20% to 6.18% APY. With a $10,000 investment in a top-paying CD, you can earn hundreds to thousands of dollars of interest on your money—and much more than if you keep it in a typical savings account.

Is it better to get CD interest monthly or yearly? ›

Typically the longer the term, the higher the CD rate is. You can earn more interest than short-term CDs with terms longer than a year and up to three years. The national average rate for a three-year term is 1.41% APY, and you can find higher yields at some banks.

Which bank gives 7% interest on savings accounts? ›

As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Can you ever lose your money with high-yield savings account? ›

Safety: As noted, most high-yield savings accounts are either FDIC or NCUA insured for up to $250,000. Moreover, as deposit accounts, they're not susceptible to the ebbs and flows of the market, so there's little to no chance you'll lose the money you deposit into one.

Is 5000 a good amount of savings? ›

Saving $5,000 in an emergency fund can be enough for some people, but it is unlikely sufficient for a family. The amount you need in your emergency fund depends on your unique financial situation.

What is the best investment for $5000? ›

Here are seven of the best ways to invest $5,000:
  • S&P 500 index funds.
  • Nasdaq-100 index ETFs.
  • International index funds.
  • Sector ETFs.
  • Thematic ETFs.
  • Real estate investment trusts (REITs).
  • Investing with the greats.
Mar 1, 2024

How can I double $5000 dollars? ›

To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.

How much will a $50,000 CD earn? ›

The best 1-year CDs could earn $2,625 in interest on $50,000. The best 2- to 5-year CDs could earn between $2,250 and $2,375 in interest on $50,000 per year.

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