How Much Money Will a CD Earn in a Year?

Shawn Plummer

CEO, The Annuity Expert

When saving money, many people turn to certificates of deposit (CDs). CDs are a great way to save money because they offer a fixed interest rate that will not change for the length of the CD. This means that you can be sure that you will earn a certain amount of money on your investment each year. This guide will discuss how much you can expect to earn on a CD in a year. We will also provide tips for choosing the right CD for your needs!

How Much Money Will a CD Earn in a Year?

Regarding deposit certificates, the interest you earn is based on the principle of compounding. This means that the interest you earn will be added to your principal investment, and the next year’s interest will be calculated on the new total. This can significantly impact how much money you earn over time.

We have provided a compounding interest calculator to get an idea of how much money you can earn on a CD.

Are Certificates Of Deposit A Good Idea?

A CD is a great option if you want a safe and reliable investment. When you invest in a CD, you can expect to earn a fixed interest rate that will not change for the length of the CD. This means that you can be sure that you will earn a certain amount of money on your investment each year.

The length of the CD determines the interest rate on a CD. For example, a five-year CD will typically have a higher interest rate than a one-year CD.

Things To Consider Before Buying A CD

When choosing a CD, it is important to consider your goals.

If you are looking for a short-term investment, you may want to choose a CD with a shorter term. Conversely, if you are looking for a long-term investment, you may want to choose a CD for a longer term.

You will also want to consider the interest rate when choosing a CD. The higher the interest rate, the more money you will earn on your investment.

Free Tool: Calculate your growth potential with our free online CD Calculator.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.50%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings, ranging from 3 months to 10 years, all in one place.

Next Steps

If you are ready to start earning money on your CD investment, we can help you get started. We offer a wide variety of CDs from different banks and credit unions. In addition, we can help you compare rates and terms to find the best CD for your needs. Contact us today with any questions!

How Much Money Will A Cd Earn In A Year?

Compare CD Rates From 423 Banks And Credit Unions

Find the highest interest rates for your savings from 3 months to 5 years.

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us
First
Last

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top