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Locking your money away in a savings account that you won’t be able to touch without a fee doesn’t make sense in a steady economic climate. Unfortunately, for many savers, this isn’t that climate right now. Inflation, while markedly cooler than it’s been in recent years, has risen recently and remains a full percentage point above the Federal Reserve’s target goal, according to the most recent data. Unemployment also recently ticked up, and widespread layoffs are now a growing concern.
In this climate, protecting a large, five-figure portion of your money for an extended period – until this period of economic uncertainty concludes – may be advantageous. A long-term certificate of deposit (CD) account could be the solution, particularly for a deposit such as $10,000. With this account type, savers can protect their principal for a year or longer. And they can grow their interest with a competitive rate that won’t change in the way variable-rate alternative accounts inevitably do. But with early withdrawal fees to account for, which can be steep with five-figure accounts over an extended period, it’s critical that borrowers understand the interest-earning potential before getting started.
So, how much interest can a $10,000 long-term CD earn now, if opened in the final days of 2025? Below, we’ll crunch the numbers.
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How much interest can a $10,000 long-term CD earn now?
Long-term CDs are defined as accounts with terms longer than one year. Though rates here are a bit lower than their short-term counterparts (a reversal from historic trends thanks to ongoing market uncertainty), the extended interest-earning timeline can often negate that differential. Here’s how much interest a $10,000 long-term CD can earn now, calculated against a variety of terms, available rates and the assumption that no fees are levied against the accounts:
- $10,000 18-month CD at 4.00%: $605.96 upon maturity
- $10,000 2-year CD at 4.00%: $816.00 upon maturity
- $10,000 3-year CD at 3.95%: $1,232.42 upon maturity
- $10,000 5-year CD at 4.15%: $2,254.52 upon maturity
- $10,000 10-year CD at 3.90%: $4,660.73 upon maturity
At a minimum, savers can easily earn hundreds of dollars with a long-term CD account of this size. But after the two-year mark, the interest-earning potential grows into the thousands. Take the time, then, to consider your rate offers and CD term options now. While not having continuous access to your funds can be challenging, the ultimate reward for doing so can clearly be valuable, especially if it means protecting your money from today’s market volatility at the same time.
Learn more about your long-term CD account options here.
Why you may be losing money now
If you have $10,000 in savings now, make sure to keep it in a profitable place, even if you ultimately decide that a long-term CD isn’t the right choice. That means moving it out of a traditional savings account. With an average rate of just 0.40% now, keeping any sizable amount of money in one of these accounts essentially means that you’re losing money you otherwise would have earned with alternative options. And with rates on CDs and high-yield savings accounts exponentially higher, both of which outpace inflation in a way that traditional savings accounts do not, it’s not beneficial to keep much (or any) money here now.
The bottom line
A $10,000 long-term CD can earn between $606 and $4,661 now, approximately, depending on the term chosen by the saver. That’s real money in return for very little effort or maintenance. That said, these rates may not last much longer, especially if the Federal Reserve continues cutting interest rates this month. So, if the returns here are valuable for you, you can afford to leave your money frozen in the account and you don’t mind sacrificing access for an extended period of time, a $10,000 long-term CD account may be worth a closer look now.
Angelica Leicht
