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While certificate of deposit (CD) yields have cooled from the peak levels seen in late 2023, today’s high-rate inflationary environment has kept them elevated, meaning that they’re still attractive by historical standards. While you may not find the same CD rate offers that grabbed headlines a year or two ago, many national banks and credit unions continue to offer rates near the 4% mark right now. That’s a compelling option, especially when you consider that savings account rates are much less enticing at under 0.4% on average.
But today’s relatively high CD rates are just one of the draws. The stability that CDs offer via their fixed rates is what’s enticing to many savers. While savings accounts that have variable rates that can shift with changes to the wider rate environment, the rate you earn on a CD stays the same for the entire term, no matter what happens with the Federal Reserve or the broader economy. That’s appealing for savers who value predictability and want to squeeze more out of cash reserves without taking on market risk.
What does a CD mean in terms of your earnings ability, though? Here’s what you can earn on $25,000 if you deposit that money into a CD offering today’s top rates.
Compare today’s top CD account offers and find the right fit here.
How much will a $25,000 CD earn right now?
Assuming that you hold the CD account to maturity and do not trigger any early withdrawal penalties, here’s what you could earn on a $25,000 deposit at today’s rates:
$25,000 3-month CD at 4.30%
Earned interest: About $269
A 3-month CD doesn’t give you much time for interest to build, but it does offer flexibility. If you’re hesitant to commit your money or think you may need it back soon, a short-term CD can be a safe place to park cash and still earn a little extra compared to a standard savings account. On $25,000, the payoff comes to just under $270 — a modest gain, but better than letting the money sit idle.
Learn more about the CD rates you could get by opening an account now.
$25,000 6-month CD at 4.45%
Earned interest: About $556
With a 6-month term, your interest roughly doubles, and that makes sense. You’re giving the bank more time to use your money, and in exchange, you’re rewarded with a slightly higher rate. A 6-month CD works well for savers who know they won’t need the funds until later in the year. It’s also a common building block in a CD ladder, giving you the chance to roll over into another CD if rates stay strong.
$25,000 1-year CD at 4.30%
Earned interest: About $1,075
The 1-year CD is often considered a sweet spot for savers. At today’s rates, a $25,000 deposit would bring in just over $1,000 by the time it matures. That’s a meaningful return for money you don’t need for the next 12 months. Many banks and credit unions also compete aggressively on 12-month CDs, so it’s worth shopping around to see if you can find an even higher yield.
$25,000 18-month CD at 4.16%
Earned interest: About $1,560
An 18-month CD offers a bit more time for your balance to grow, and it can be a smart middle ground if you’re looking to secure a fixed rate beyond a single year. With $25,000 invested, you’d end up with around $1,560 in interest. This option may appeal if you’re saving for a mid-range goal, such as a down payment or a large purchase planned a year and a half from now.
$25,000 2-year CD at 4.10%
Earned interest: About $2,050
A 2-year CD crosses into longer-term territory. The earnings — roughly $2,050 on a $25,000 deposit — are more substantial than the shorter-term options, but the bigger question is whether you’re comfortable locking your money away until 2027. For some savers, this stability is worth it, especially if you’re worried that CD rates may fall in the near future.
$25,000 3-year CD at 4.10%
Earned interest: About $3,075
At three years, the compounding nature of CD interest becomes evident. Your $25,000 would generate more than $3,000 in interest by the end of the term. This kind of CD can be ideal for funds earmarked for a specific longer-term goal, such as future tuition payments or a home renovation. It also shields you from reinvestment risk if rates decline in the next couple of years.
$25,000 5-year CD at 4.20%
Earned interest: About $5,250
The 5-year CD delivers the highest return — about $5,250 on $25,000. But with that return comes the longest commitment. If you’re certain you won’t need the money for half a decade, this option offers predictable, guaranteed growth. Many investors use 5-year CDs as the anchor in a laddering strategy, balancing them with shorter terms to keep some liquidity.
The bottom line
On $25,000, today’s CD landscape can produce anything from a few hundred dollars in just months to several thousand over multi-year terms without market volatility and with your rate locked from day one. If access matters, focus on the 3-, 6- or 12-month tiers; if sheer dollar output matters (and you won’t need the cash), the 2- to 5-year range does the heavy lifting.
Before opening any CD account, though, be sure to match the term to your cash-flow timeline and read the penalty fine print, especially since early withdrawals can erase gains. With many terms still near 4%, though, CDs remain a straightforward way to make idle cash work in a predictable, safe manner.