How much interest will a $50,000 CD earn now?

Inflation is on the decline, unemployment numbers are falling and interest rates are cooling. All good news, right? That depends on who you ask. While these factors are undoubtedly beneficial for the broader American economy, they’re less advantageous for savers accustomed to earning a big return on their money in recent years. As inflation spiked and interest rates surged to their highest level in decades, rates on high-yield savings and certificates of deposit (CD) accounts soared alongside it, rising exponentially from where they were in 2020 and 2021. As a result, savers could easily earn rates of 4% to 5% or higher, depending on the account and lender in use.

One of the smart ways to earn these high rates is with a CD, in particular. That’s because rates on these accounts are fixed, ensuring that savers will earn the rate they opened the account with even if rates fall during the account’s term. This is a unique feature especially attractive for those who are looking to deposit a five-figure sum into a CD to take advantage of this high rate cycle while still available. But how much interest will a $50,000 CD earn now? That’s what we’ll calculate below.

See how much more you could be earning with a CD here now.

How much interest will a $50,000 CD earn now?

The amount of money you can earn with a CD is based on two primary factors: the interest rate and the term, or length, of the CD. Using a $50,000 deposit, here’s what that would look like tied to available rates and terms right now (not accounting for fees or early withdrawal penalties):

• 6-month CD at 4.95%: $1,222.55 for a total of $51,222.55
• 1-year CD at 4.56%: $2,280.00 for a total of $52,280.00
• 18-month CD at 4.20%: $3,182.85 for a total of $53,182.85 
• 2-year CD at 4.20%: $4,288.20 for a total of $54,288.20 
• 5-year CD 4.35%: $11,863.18 for a total of $61,863.18 

As illustrated above, a $50,000 deposit can result in thousands of dollars in interest earned and over $10,000 if deposited into a leading 5-year CD right now. That noted, it’s critical that savers only deposit an amount that they’re comfortable leaving untouched in the account until account maturity or they’ll risk paying a hefty early withdrawal penalty to regain access.

Start earning more on your money with a top CD here.

What about high-yield savings accounts?

High-yield savings accounts, as noted, have interest rates competitive with the best CDs right now. However, there’s one major caveat: High-yield savings accounts have variable interest rates subject to change as the rate climate does. That’s a plus when rates are on the upswing but a detractor now as interest rates appear to be cooling again. 

Still, for the right saver, it may make sense to pursue this particular account type because, unlike CDs, you won’t need to lock your money away to earn a high rate. Just understand that the high rate could become a lower one in the weeks and months to come versus a CD that will keep earning a fixed, high return until maturity.

Explore your high-yield savings account options now.

The bottom line

A $50,000 deposit into a CD can earn you anywhere from about $1,200 to $12,000 if opened with a top lender right now. But rates on these accounts won’t be immune from the broader decline in the rate climate. So if you know you want to open a CD, it behooves you to act quickly. Considering that rates on these accounts were barely 1% just a few years ago, the window of opportunity to earn a big (and safe) return on a $50,000 CD could soon be closing.