How much interest can a $10,000 3-year CD earn if opened now?

If you have $10,000 readily available now, it can be tempting to invest it strategically. Stock market returns have historically been over 10% and, even in today’s uncertain economy, you’ll likely earn more by investing it over the next three years than you will by transferring it into a high-rate savings account like a certificate of deposit (CD). But with an investment, you can also lose all of your principal – and interest – overnight, should market conditions rapidly change. That won’t be an issue with a CD as it will protect your principal and reliably grow your interest thanks to the account’s fixed rate. And that may be exactly what savers are looking for right now.

With inflation sticky, borrowing costs poised to further increase alongside a potential Federal Reserve rate hike later this year and concerns over unemployment pronounced, a savings account with a fixed rate of around 4% makes a lot of sense now. And it will continue to be advantageous over the next 36 months as you’ll still earn a competitive rate even if the rate climate cools, all while simultaneously protecting your principal both from market conditions and uneven spending habits.

Still, a CD account of this length isn’t right for everyone and, to avoid paying a costly early withdrawal fee, you’ll want to make sure that the returns will be worth the accessibility restrictions. Start, then, by calculating the interest. How much interest can a $10,000 3-year CD earn if opened this August? That’s what we’ll break down below.

Start earning more interest on your money by opening a CD now.

How much interest can a $10,000 3-year CD earn if opened now?

The top 3-year CD interest rates range from 4.25% to 4.50% right now, but savers may be able to find slightly higher options by diligently shopping around online. Using these readily available rates, however, here’s how much interest a $10,000 3-year CD will earn savers now, assuming no early withdrawal penalties are issued during the term:

• $10,000 3-year CD at 4.25%: $1,329.96 upon account maturity
• $10,000 3-year CD at 4.35%: $1,362.59 upon account maturity
• $10,000 3-year CD at 4.50%: $1,411.66 upon account maturity

Savers are positioned to earn between $1,330 and $1,412 with a $10,000 3-year CD that’s opened now and possibly more if they use an online bank. And if they use an online marketplace, which provides a side-by-side comparison of banks, accounts, rates and terms, they can easily get started with the right account for their needs and goals as soon as today.

Start shopping for high-rate CD accounts here.

How much interest can a $10,000 high-yield savings account earn over the next three years?

A high-yield savings account, which functions the same way a traditional account does, albeit with a higher rate, can be tempting for those savers who want to earn a competitive rate but don’t want to limit access to their money the way the CD account requires. While this account can earn a similar return as the CDs outlined above (top rates are around 4.10%) now, it’s unlikely that it actually will. 

That’s because the high-yield savings account has a variable rate that will change based on market conditions, making long-term interest-earning projections impossible to complete with clarity. So, while you may maintain access to your funds, if you’re looking for a secure and predictable return on your money, it may be worth sticking with the CD.

The bottom line

A $10,000 3-year CD can produce a guaranteed return ranging from $1,330 to $1,412 for savers right now. And while savers may be able to earn a similar return with a high-yield savings account alternative, it won’t be guaranteed the way the CD will. That said, either account remains a viable option compared to a traditional savings account. With an average rate of just 0.38% there, you’re essentially losing money by not making the switch into one of these high-rate alternatives now. And that’s true whether you open a long-term CD, a high-yield savings account or a CD that matures before the end of the year.