Calculating Your Earnings with a $10,000 Investment in a Certificate of Deposit (CD)

How to Maximize Returns With A $10K CD

If you invest $10,000 in a CD with a 5.00% APY, you could earn:

• $500 in interest in one year
• $1,025 in interest in two years
• $2,762 in interest in five years

On the other hand, a CD with a 4.00% APY would yield:

• $400 in interest in one year
• $816 in interest in two years
• $2,166 in interest in five years

Understanding CD Withdrawals

If you withdraw funds before the term ends, penalties apply, reducing your overall earnings. Keep your money untouched to avoid fees and maximize your CD rate.

When CDs are Beneficial

Consider CDs for stable returns that outpace inflation, especially if you prefer a fixed-rate and low-risk investment option.