How much interest would a $10,000 6-month CD earn now? (2024)

FAQs

How much interest would a $10,000 6-month CD earn now? ›

Since different lenders offer different rates based on the term (or length) of the CD, this could vary. That understood, here's what the account will earn based off of some common 6-month CDs rates available online now: 5.35%: $264.01 in interest for a total amount of $10,264.01 after six months.

A 6-month CD is a type of savings option that lets you maintain a fixed interest rate for a short period of time. The national average CD rate on a 6-month term is 1.81% APY (Annual Percentage Yield), according to the FDIC. However, there are much higher interest rates on 6-month CDs right now.

You could earn thousands of dollars

For example, you could earn a 4.61% APY by depositing $10,000 into a 3-year CD right now. If you chose to do so, you would earn $1,447.74 in interest - bringing your total balance to $11,447.74 after three years.

When Should You Get a 6-Month CD? CDs tend to offer higher yields than traditional savings and money market accounts, especially in a low-interest rate environment. A 6-month CD may be a good option if you know that you won't need access to your funds for at least six to nine months.

Income on short-term CDs—those with terms of 12 months or less—is taxed at maturity. Income from longer-term CDs is taxed as it accrues.

The highest certificates of deposit (CDs) rates today are offered by Nano Bank (6.00%), Merchants Bank of Indiana (5.92%), Shoreham Bank (5.50%) and HAB Bank (5.48%). You can see the full list of the highest-paying CDs here.

As such, the banks are more willing to offer a high rate on a short-term CD because they're more likely to turn a profit due to the elevated federal funds rate. They're hesitant to offer that same high rate on a long-term CD, however, because the federal funds rate could drop during that CD's lifespan.

Where to put $10,000 for best interest? ›

A stocks and shares ISA is likely to be most suitable. That is unless you will turn 55 within 30 years, in which case a pension might be a better tax wrapper for you. If you're unsure about the time horizon, you could invest in both a pension and a stocks and shares ISA.

Simple Interest Examples

You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500.

Making $4,000 a month based on your investments alone is not a small feat. For example, if you have an investment or combination of investments with a 9.5% yield, you would have to invest $500,000 or more potentially. This is a high amount, but could almost guarantee you a $4,000 monthly dividend income.

You'll earn a solid yield of 5.05% on a six-month CD, and you can open an account with just $500. Make sure you're ready to commit, though, Quontic charges six months' interest if you pull the plug early, meaning you would lose all the interest you had earned.

For example, Chase's six-month CD has a standard APY of 0.01% and a relationship APY of 3.00%.

The national average APY for a one-year CD is 1.74 percent, based on Bankrate research, which shows this average has increased or remained the same since March 2022. If you deposited $10,000 into a one-year CD that pays this national average rate of 1.74 percent, in one year it would be worth a total of around $10,174.

That said, here's how much you could expect to make by depositing $20,000 into a one-year CD now, broken down by four readily available interest rates (interest compounding annually): At 6.00%: $1,200 (for a total of $21,200 after one year) At 5.75%: $1,150 (for a total of $21,150 after one year)

Depending on the bank, a $5,000 CD deposit will make around $25 to $275 in interest after one year.

A money market fund is a mutual fund that invests in short-term debts. Currently, money market funds pay between 4.47% and 4.87% in interest. With that, you can earn between $447 to $487 in interest on $10,000 each year. Certificates of deposit (CDs).