Here’s how much interest a $100,000 2-year CD account will earn savers now

Locking a portion of your money into a 2-year certificate of deposit (CD) account often isn’t considered to be the best financial approach. And that’s especially true when there’s a large amount of money at play, such as $100,000. 

But in today’s unique economic climate, conventional wisdom may not always be applicable. Inflation is once again more than a full percentage point above the Federal Reserve’s target 2% goal. The central bank, meanwhile, is contemplating raising interest rates later this year, potentially issuing its first hike since 2023. And the backdrop of geopolitical tensions and overseas conflicts makes long-term economic projections even harder to complete with precision.

In this climate, protecting your $100,000 could make a lot more sense than it would have in a different setting. And a CD, with a high, fixed interest rate that will hold for multiple years, could be the smart, secure and profitable account to seriously evaluate. At the same time, withdrawing your funds prematurely will lead to an early withdrawal penalty, which is likely to be costly on an account of this size. So it’s worth it to first understand how much interest you’ll actually earn with a $100,000 2-year CD account. Fortunately, that’s simple to calculate thanks to the account’s fixed rate. Below, we’ll do the math.

Start earning more interest on your money by opening a high-rate CD account here.

Here’s how much interest a $100,000 2-year CD account will earn savers now

The top 2-year CD account interest rates range from 4.25% to 4.35% right now, though savers should expect to see some variability amid banks when shopping around. Here’s how much interest a $100,000 2-year CD account is positioned to earn if opened now, calculated using the top three available rates and the assumption that no fees or penalties are levied against the account through the maturity date:

• $100,000 2-year CD at 4.25%: $8,680.63 upon account maturity
• $100,000 2-year CD at 4.30%: $8,784.90 upon account maturity
• $100,000 2-year CD at 4.35%: $8,889.23 upon account maturity

Savers will earn between $8,681 and $8,889, approximately, with a $100,000 2-year CD account that’s opened right now – and potentially more if they take the time to shop around and are able to find an account with an even higher rate. And with online banks offering some of the most competitive options available now, it makes sense to start the search there. With online marketplaces listing rates, terms, lenders and more in one easy-to-digest location, it’s especially easy to get started right away.

Shop for CD accounts online here.

How much interest will $100,000 earn in a high-yield savings account over the next two years?

High-yield savings accounts currently come with interest rates competitive with the top CDs, though not quite as high as the 2-year CD account. With a top rate of 4.10% now, however, this can be a viable account type to consider for your $100,000. The only drawback is that the rate is variable and subject to change, which it assuredly will do over the next 24 months. This makes interest earnings less reliable than the CD and harder to project with certainty. 

Assuming that the 4.10% holds through August 2028, however, savers can expect to see their $100,000 grow to $108,368.10. While that’s less than the 2-year CD offers, this account can still merit serious consideration as it won’t restrict access to your funds the way the CD will, which can be a legitimate drawback when considering the initial deposit amount.

The bottom line

Between $8,681 and $8,889, approximately. That’s how much interest savers can expect to see with a $100,000 2-year CD account that’s opened now. That interest is guaranteed and your principal will be protected for the next 24 months, making this a more viable home for your money than it may have been in a different economic climate. But with high-yield savings accounts offering a similar, albeit smaller and less reliable return, with none of the accessibility restrictions, that can also be a credible account to consider. Don’t discount the advantages, too, of splitting your funds between both account types, which will allow you to leverage the unique benefits each offers while still maintaining access to a sizable portion of your funds as needed.