How to earn $1,000 with a CD account now (even after the Fed cut rates)

It was just around a year ago in which savers could find a certificate of deposit (CD) account with an interest rate up to 6%. And, it was just around two years ago in which some savers could qualify for an account with a rate of 7%. But the interest rate climate has undergone significant changes since both of those points.

The Federal Reserve issued a series of rate cuts in the final months of 2024 and, this month, they issued their first one for 2025. While the 25 basis point cut was a minimal one, it underlined the timeliness of opening a high interest earning savings account now. Today’s relatively high rates won’t be around much longer.

But that doesn’t mean that CDs can’t still be valuable, especially if used strategically. Savers can still locate accounts with rates of 4.50% or slightly higher now. And, with the right deposit amount and term, they can still earn around $1,000 or more on their money – even after the Fed cut rates. Still, with additional rate cuts looming in the final quarter of 2025, it pays to be proactive right now. Below, we’ll detail the next steps savers should take.

Start by seeing how much interest you can still earn with a high-rate CD here.

How to earn $1,000 with a CD account (even after the Fed cut rates)

It’s important that savers only deposit an amount that they can comfortably afford to keep in the CD for the full term as to avoid having to pay an early withdrawal fee. Don’t open any of the following accounts unless you can keep the account until it matures. If you can, however, it helps to know how you can still earn $1,000 with one of these accounts. Here are three ways to do so:

Deposit $24,000 into a 1-year CD

With an interest rate of 4.20%, a $24,000 deposit into a 1-year CD now can earn savers just over $1,000 ($1,008 to be precise). And while the initial deposit amount may be on the high side, the term length of just 12 months can be manageable for savers who want to earn a decent return on their money but don’t want to deal with the volatility of the stock market. You can also play with your deposit amounts, if you’re comfortable making a bit less (or want to earn a little more).

Compare your 1-year CD account options here.

Deposit $8,200 into a 3-year CD

Sure, this account type will require a bit more patience but the earnings will be higher than the 1-year CD type outlined above and it’ll be earned with a deposit almost three times smaller. By depositing $8,200 into a 3-year CD with a rate of 3.95% now, savers will see their account grow by $1,010.59 after 36 months. That’s more than $330 earned annually simply by keeping this money in this account until maturity.

Deposit $16,000 into an 18-month CD

Don’t mind making a larger deposit if it means regaining access to your money in a shorter turnaround time? Then consider a $16,000 deposit into an 18-month CD now. With a rate of 4.05% currently you’ll earn just under $1,000 upon the account’s maturity date ($981.78). An account of this length is beneficial now because it provides extended protection against rate cuts still to come without locking your money away for multiple years the way 2-year and 3-year CDs do.

What about CD laddering?

A CD laddering strategy can be especially timely and beneficial in today’s rate climate. This involves opening multiple CD accounts at the same time with different terms and, thus, different maturity dates. This allows savers to exploit today’s high rate climate without tying up too much of their money for too long. They can then pivot their savings strategy accordingly as each account hits its maturity date. Still, this will require time and patience and is far from the “set it and forget it” approach many CD account holders prefer, so that will need to be taken into account, too. That said, this could be the perfect strategy for CD account holders now, in the evolving rate climate of fall 2025.

The bottom line

It’s still relatively easy to earn $1,000 or more with a CD account now as the above three examples illustrate. That said, a cooling rate climate should motivate savers to take action promptly. Rates here are already materially lower than they were in 2023 and 2024 so it makes sense to lock in the highest one you can get with the biggest deposit you can afford now. This opportunity may not last much longer.