Here’s how much interest a $75,000 CD account can earn now

A certificate of deposit account has multiple attractive features in today’s economy. While not quite as high as they were a year or so ago, interest rates on these accounts are comfortably in the 4% to 5% range still. And rates on CDs are fixed, meaning that they’ll remain the same even in the face of rate cuts (or hikes) issued during the CDs term. This allows savers to calculate their interest earnings with precision and assuages concerns over reduced earnings in the future as the CD will maintain its initial rate through to maturity. CDs are also safe, as they’re FDIC-insured up to $250,000 per account, making this both a viable home for smaller amounts and deposits of five figures.

If you’re a saver considering a large deposit like $75,000 into a CD, then, you may already be sold on the benefits this unique savings vehicle offers right now. Before getting started, however, it helps to calculate the interest you’ll earn with this much money. This can help you budget more carefully and truly determine the worth of the account before locking your money away. So, how much interest can a $75,000 CD account earn now? That’s what we’ll break down below.

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Here’s how much interest a $75,000 CD account can earn now

With CD rates high right now – but the potential for them to decline in the months ahead alongside a lower federal funds rate – savers considering this account type may want to act quickly. To better help determine if it’s worth doing with a $75,000 deposit, take a look at the interest earnings below, calculated against readily available rates on the assumption that early withdrawal penalties are avoided:

• $75,000 3-month CD at 4.30%: $793.57
• $75,000 6-month CD at 4.45%: $1,650.59
• $75,000 9-month CD at 4.30%: $2,405.98
• $75,000 1-year CD at 4.40%: $3,300.00
• $75,000 18-month CD at 4.16%: $4,728.34
• $75,000 2-year CD at 4.10%: $6,276.07
• $75,000 3-year CD at 4.10%: $9,608.39
• $75,000 5-year CD at 4.15%: $16,908.91

So the interest earnings with a CD of this amount are substantial, with hundreds and potentially tens of thousands of dollars to be earned over time. If you’re comfortable parting with this much money, in exchange for these big returns, a CD account with a $75,000 deposit could be worth it for you. This is especially so considering that rates are likely to decline soon, which will impact variable rate savings products like high-yield savings and money market accounts in a way that won’t be reflected for CDs.

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The bottom line

A CD account has multiple benefits for savers now. And even though the returns may not be as robust as what savers can secure by playing the stock market, that volatility won’t need to be accounted for either as returns here are reliable and predictable. Still, with rate cuts in play for as soon as this September, potentially, delaying action isn’t advantageous either. If you can lock in a high CD rate now, especially with an online bank, it’s generally worth doing so. Just be sure to pick the right term, as an early withdrawal penalty on a $75,000 deposit could be expensive.