Here's How Much $10,000 in a 1-Year CD Would Earn You Now
KEY POINTS
- A $10,000 deposit in a 1-year CD at 4.00% APY would earn about $400 in interest.
- Many top CDs offer over 4.00% APY, far above the national average.
- High-yield savings accounts can offer similar returns with more flexibility.
While the stock market yo-yos and the future of interest rates remains in question, 1-year CDs are becoming an attractive safe haven for guaranteed returns.
Right now, some banks are offering 4.00% APY or higher, which means a $10,000 deposit could earn about $400 in a single year -- without taking on any risk.
What you could earn from a 1-year CD right now
The national average for 1-year CDs is just 1.75% APY, according to the FDIC. But the top CD rates available today are in the 4.00% range.
Here's a quick breakdown of how much a $10,000 deposit can earn in a 1-year CD, depending on the rate:
| CD APY | Interest Earned (1 Year) | Final Balance |
|---|---|---|
| 1.75% | $175 | $10,175 |
| 4.00% | $400 | $10,400 |
That makes today's top offers around 4.00% a huge upgrade -- potentially $225 more interest for simply picking a better bank.
Ready to earn more on your savings? Compare today's best 1-year CD rates here and lock in a top-tier APY.
Is a 1-year CD right for you?
A 1-year CD is a nice middle ground between short-term flexibility and long-term returns. You won't be locked in for multiple years, but you'll still earn a solid rate without any volatility or surprises.
Here's when a 1-year CD makes a lot of sense:
- You have cash you won't need for the next 12 months
- You want a fixed, guaranteed return (no market risk)
- You think rates might drop soon, and want to lock in while they're still high
One thing to keep in mind: CDs typically charge a penalty for early withdrawals. So make sure you won't need that money until the CD matures.
A more flexible option: High-yield savings accounts
Not sure about locking up your money for a whole year? A high-yield savings account (HYSA) gives you many of the same benefits -- with more flexibility.
Top HYSAs right now are also offering around 4.00% APY, and you can generally withdraw or transfer money anytime without penalty. The downside however, is that rates can change quickly, so returns are never guaranteed.
If rates hold steady, you could still potentially earn $400 in interest with a $10,000 deposit.
Yes, a CD can lock in that return. But the HYSA gives you freedom to move money throughout the next year. If flexibility is a priority, the HYSA might be the better bet.
One of my favorite accounts now offers 4.10% APY for balances of $5,000 or more. Check out the CIT Platinum Savings account -- a perfect parking spot for a liquid $10,000.
Put your savings to work
Whether you choose a 1-year CD or a high-yield savings account, either one is a huge upgrade from letting your money sit in a low-rate account.
Make the switch now to keep your savings safe -- and earn the most interest while rates are still high.
Our Research Expert
Joel is a full-time writer at Motley Fool Money, known for his clear, approachable voice on topics like credit cards, savings hacks, and side hustles. He’s been writing about money since 2018 and previously managed editorial content for the How To Money podcast.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.