Here’s how much you’d earn by putting $10,000 in a CD for 5 years

Core Insights - Certificates of deposit (CDs) offer moderate earnings with minimal risk, currently providing competitive returns with some rates exceeding 4% APY [1][3] - The average 60-month CD rate is 1.34%, but many banks and credit unions offer rates significantly higher than this average [3][5] - Choosing a CD with a higher interest rate can result in earning over three times the interest compared to an average CD [5] CD Earnings Comparison - A $10,000 deposit in a CD earning 4% APY would yield $2,166.53 in interest over five years, while the same amount in an average CD would yield only $688.20 [5][18] - The difference in earnings highlights the importance of selecting a competitive CD rate [4][5] CD Rates by Term - Interest rates for CDs vary by term length, with longer terms traditionally offering higher rates, although current economic conditions can influence this trend [6][7] - As of January 2026, 12-month CDs are reported to offer the highest returns, but longer terms can still yield more interest overall due to compounding [7] Alternatives to CDs - High-yield savings accounts (HYSAs) and money market accounts (MMAs) are alternatives to CDs, often providing competitive interest rates and more flexibility for withdrawals [10][11] - The best HYSAs and MMAs currently offer rates up to 4% APY, comparable to top CDs [10][12] Investment Considerations - CDs are suitable for individuals who can set aside funds for a fixed term, providing predictable earnings [15] - If there is a possibility of needing to withdraw funds before maturity, alternatives like savings or money market accounts may be more appropriate [16][20]