How Much $100,000 Could Earn in a CD

How Much You Can Earn With a $100,000 CD

You could earn $2,490 in interest on a $100,000 CD, assuming today's average one-year CD rate of 2.49%, according to Curinos data. If you kept your money in a five-year CD at the current average rate of 1.96%, your investment would grow by $10,191.76 over five years.

While the national average yield sits at 2.49% for a one-year CD, many banks and credit unions offer significantly higher rates to attract depositors. Some of the best CD rates today are over 4%. For example, a one-year CD with a 4.15% annual percentage yield (APY) would boost your one-year interest earnings to $4,150.

Here's a look at how much $100,000 could earn with some current rates:

^*Source: Curinos, July 2025; interest based on annual compounding

Learn more: Do CDs Pay Interest or Dividends?

Benefits of a CD vs. a Savings Account

CDs can be a smart savings tool if you're looking for predictable returns and don't need immediate access to your cash. Here are two key advantages they offer over traditional and high-yield savings accounts:

• Higher yields: CDs typically offer better interest rates than standard savings accounts and often even beat high-yield savings accounts. With a competitive rate, you can lock in a higher APY for the entire term, giving your money a guaranteed boost.
• Fixed interest rates: Unlike savings accounts where rates can fluctuate, CDs lock in your rate from day one. That means you'll know exactly how much you'll earn, regardless of market conditions or changes to the federal funds rate.

Keep in mind, though, that CDs require you to lock up your money until your account reaches maturity. If you take your money out before then, you'll typically incur an early withdrawal penalty, so it's important to choose a term that matches your financial goals.

Learn more: Types of CDs and How They Work

Are CDs Safe?

CDs are considered one of the safest places to put your money. Here are a few reasons why:

• Federal insurance protection: CDs issued by banks are insured by the Federal Deposit Insurance Corp. (FDIC), and those from credit unions are insured by the National Credit Union Administration (NCUA). That means your deposits are protected up to $250,000 per depositor, per institution in the event that the financial institution goes out of business.
• No market risk: Unlike stocks or mutual funds, CDs aren't tied to the ups and downs of the market. You won't lose money due to price fluctuations, which makes CDs a reliable option for conservative investors.
• Fixed returns: When you open a CD, the interest rate is locked in for the entire term. This guarantees a predictable return and shields your savings from falling interest rates.

In most cases, you can't lose money in a CD. However, some financial institutions may impose early withdrawal penalties that can eat into your principal balance, so it's critical that you carefully review the account terms before opening one.

Top Strategies to Maximize CD Earnings

If you're thinking about stashing some cash in a CD, here are some ways you can make the most of your investment:

• Shop around. CD rates can vary significantly among banks and credit unions, so compare offers before opening an account. Online banks often have some of the most competitive rates, but some credit unions can offer comparable returns.
• Consider a CD ladder. A CD ladder strategy involves splitting your investment across multiple CDs with staggered maturity dates. This approach gives you regular access to your money and lets you take advantage of rising rates over time.
• Try a CD barbell strategy. With a CD barbell, you put half your money in a short-term CD and the other half in a long-term CD. This balances liquidity with the potential for higher long-term yields, allowing you to respond to rate changes.
• Use a CD bullet approach. A CD bullet strategy involves opening several CDs that all mature around the same time. It's ideal if you're saving for a specific future expense, like a home down payment or college tuition.
• Pick the right term. Longer terms generally offer higher yields, but locking up your funds for years isn't always ideal. Choose a term that balances a strong return with your need for flexibility.
• Watch interest rate trends. If you think rates will drop soon, lock in a good rate now with a long-term CD. If rates might rise, choose shorter terms to stay flexible.

Learn more: Strategies for CD Savers

The Bottom Line

A $100,000 CD can be a powerful, low-risk way to grow your savings—especially when rates are as high as they are in 2025.

That said, CDs aren't the most flexible option. Once your money is in, it's generally locked up until the CD matures. If you withdraw early, you may face a penalty that could cancel out some or all of your earnings.

If you're confident you won't need the cash right away, a certificate of deposit can offer guaranteed returns and peace of mind. Just be sure to shop around, pick the right term and consider smart strategies to get the most out of your savings.