If you deposit $10,000 in a CD, this is what you earn

Right now, the best certificates of deposit offer annual percentage yields, or APYs, of more than 5%. And unlike savings accounts, which have variable interest rates, your CD’s interest rate is locked in when you open the account. With APYs dropping, that means opening a CD now can protect your earnings from future interest rate declines.

So how much can you make by locking in a high interest CD now? Most people don’t have an extra $10,000 to invest, but when you look at a round number like this, it’s easy to see how much you can make over time. We’ll also show you how much you can make by deposit smaller amounts and share some tips to help you build up your savings.

How Much Can You Earn by Depositing $10,000 in a CD?

Here’s how much you could earn if you deposit $10,000 in a six-month, one-year, three-year, and five-year CD. We calculate your return based on the highest APYs currently available for each CD term, based on the banks we track at CNET.

The national average The national average for a one-year CD is 1.81% APY, while the average one-year CD based on the banks we track at CNET is 4.97% APY. If you deposited $10,000 into a one-year CD paying the national average of 1.81% APY, its value at maturity would be $10,181. However, if you deposited $10,000 into a one-year CD earning 5.35% APY (the highest APY on our list), it would be worth $10,535 at maturity.

Don’t have $10,000? No problem. Here’s what you can earn with a smaller deposit

You don’t need to have $10,000 on hand to earn a competitive interest rate on your savings. Most of the CD accounts on our list don’t require a minimum deposit to lock in a high CD rate. Here’s what you can earn with other deposit amounts:

How CD interest is calculated

When you open a CD, the APY represents the actual return you will earn on your deposit over a year. The APY reflects compound interest, meaning you won’t just earn interest on your initial deposit — your interest will earn interest as well.

Some banks compound interest daily, while others compound monthly, quarterly, or semi-annually. The more often interest is compounded, the more money you make.

You can use a compound interest calculator to figure out how much your money can grow in a CD. We recommend using this calculator from the US Securities and Exchange Commission.

Still Growing Your Savings? A High-Yield Savings Account Can Help

CDs are a great option if you have money saved up that you won’t need for a while. But most of us don’t have a few thousand lying around that we can dip into for a few years in exchange for a fixed interest rate. And that’s okay.

A high-yield savings account or a money market account with a competitive APY is your best bet if you still grow your emergency fundworking on your savings goals or want to withdraw your money when you need it. These accounts allow you to build your savings when you want, while still having access to your money when you need it.

By contributing just $100 a month, you can build up to $1,200 in savings each year. If you can contribute more, say $250 a month, you could build up an emergency fund of $3,000 in a year. And that’s not even counting the interest you’ll earn on top of your savings. While savings accounts have variable interest rates — meaning they can rise and fall based on the economy and your bank’s discretion — experts expect savings rates to remain high throughout the year. For now, some online savings accounts with a high return.

It takes time to grow a savings account. Focus on what you can contribute and make saving a habit so it becomes routine. You can also use automated savings tools like rounding and automatic transfers to grow your savings a little faster without taking up any of your time. CNET Money editors are big fans of Ally Bank’s automated savings features, but many online banks offer handy savings features as well.