How much interest can a 3-year CD account earn now?

In some economic climates, maintaining access to your funds is the top priority, even if it means losing out on some profitable opportunities with select savings accounts or savvy investments. In other times, however, locking your money away for an extended period of time can take precedence. And, if you can do so via a high-rate savings account that will result in a sizable profit, that can serve as an added incentive. 

Many savers this July find themselves falling into that latter category. With the inflation rate at its highest level since April 2023, minimal job growth and higher borrowing costs expected to stay static for the foreseeable future, where you keep your money both now and over the next few years is critical to get right.

This is where a certificate of deposit (CD) account can be worth serious evaluation. Interest rates on this account type largely remain over 4% now, and those rates are fixed, meaning that they’ll hold through the maturity date – even if that date is multiple years away. And a maturity date two or even three years into the future may be what savers need now, as it will protect their funds for an extended period while still earning them a return that outpaces today’s inflation rate. 

Still, you’ll need to pay an early withdrawal fee on any CD account, and it could be sizable with a 3-year CD, specifically, so you’ll want to ensure that the return here is worth it before making a deposit. So, how much interest can a 3-year CD account actually earn now? Thanks to the fixed rate it comes with, this is easy to calculate. Below, we’ll do the math.

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How much interest can a 3-year CD account earn now?

Savers looking to secure as much interest as they can with a CD account are encouraged to shop around to see how high of a rate they can find (online marketplaces make it particularly easy to do just that). 

Here’s how much interest a 3-year CD account can earn if opened now, calculated using one of the top rates available with this term, six different deposit amounts and the assumption that no fees or penalties eat away at the returns savers stand to earn:

• $1,000 3-year CD at 4.15%: $129.74 upon maturity
• $5,000 3-year CD at 4.15%: $648.69 upon maturity 
• $10,000 3-year CD at 4.15%: $1,297.38 upon maturity
• $25,000 3-year CD at 4.15%: $3,243.36 upon maturity
• $40,000 3-year CD at 4.15%: $5,189.53 upon maturity
• $50,000 3-year CD at 4.15%: $6,486.91 upon maturity

Savers will earn as little as $130, approximately, or as much as $6,487 with a 3-year CD account, if they deposit an amount between $1,000 and $50,000 this July. But the interest earnings here are only one of the advantages this account offers, as it can provide extended protection for your funds in a way that many other savings accounts and almost all investments simply cannot. Viewed through that prism, then, this could be the right account in the right term for your money right now.

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The bottom line

A 3-year CD account won’t be the right account for every saver or even many. But for those looking to earn a big return on their funds while protecting that money for multiple years ahead, it can be worth serious consideration now. Start by reviewing the returns outlined above, calculate the amount of interest you could earn if you want to deposit a different amount, and most importantly, start shopping around online now to see how high of a rate you can actually find. Just be confident in your ability to keep the account locked for the next 36 months to avoid paying an early withdrawal fee, which will bring you right back to where you began in your savings journey.