How much will a $20,000 long-term CD earn now?

While borrowers may be hoping that the Federal Reserve will implement more rate cuts later this year, easing the cost of borrowing, today’s market uncertainty has resulted in varied predictions for interest rate cuts. Should the Fed cut rates later in 2025, though, it would likely lead rates to drop on low-risk, stable investment options such as certificates of deposits (CDs) — lowering the possible returns that savers can earn on these types of deposit accounts. 

As a result, savers who have sizable amounts of money to invest may want to consider putting some funds into a long-term CD now, before any potential rate cuts have the chance to materialize. After all, many of today’s top long-term CDs tout annual percentage yields (APY) above 4% at the moment, and at that high of a rate, you can ensure that you’re earning a hefty return on your money by depositing a large amount into this type of account — $20,000, for example. 

If you have $20,000 and are ready to open a long-term CD but aren’t sure how much you could earn by maturity, we’ve done the math below. 

Lock in a top long-term CD rate now. 

How much will a $20,000 long-term CD earn now?

In general, the rates offered on long-term CDs aren’t as high as short-term CDs right now, but they offer a significant advantage: time. Even with slightly lower rates than, say, a 6-month CD, long-term CDs allow interest to grow your account balance over a longer period, and in turn, generate bigger returns.  

With that in mind, here’s what you can earn right by depositing $20,000 into a long-term CD at today’s top rates:

• 1-year CD at 4.40%: $880.00 for a total of $20,880.00
• 2-year CD at 4.15%: $1,694.45 for a total of $21,694.45
• 3-year CD at 4.15%: $2,594.76 for a total of $22,594.76
• 5-year CD at 4.25%: $4,626.93 for a total of $24,626.93 
• 10-year CD at 3.40%: $7,940.58 for a total of $27,940.58

Depositing your money in a long-term CD today can earn you anywhere from $880 to $7,940.58 by maturity, depending on your CD rate and term. 

Find out the top long-term CD rates you could get here.

Who should consider a long-term CD account now (and who shouldn’t)?

Long-term CDs are a great fit for some savers and not a good option for others. 

Who should consider a long-term CD?

• Those nearing retirement: If you’re planning on retiring in the next five years, a long-term CD’s guaranteed returns reduce the risk of your investment losing money as you head into retirement. 
• Those with solid savings balances: Many long-term CDs enforce early withdrawal penalties if you pull money from your account before maturity. If you have substantial savings, you likely won’t need to lean on your CD funds to cover financial emergencies, thus avoiding early withdrawal penalties. 

Who shouldn’t consider a long-term CD?

• Those with little to no savings: More than half of Americans can’t afford a $1,000 emergency expense, a sign that the average person has little money saved. If you’ve got less than $1,000 in savings right now and receive a financial windfall, it may make sense to put the money in a savings account where you can easily access it if you have an urgent or unexpected expense. Once you’re on firmer financial footing, consider investing your money in a short-term CD, which would provide a balance between returns and liquidity.
• Those with high-rate debt: If you’ve got high-rate debt eating away at your monthly budget, consider using the money you’ve set aside for a long-term CD to pay down those balances instead. As you ease the strain on your budget, you’ll free up money to invest in a CD.

The bottom line

Before you open a long-term CD, there are several steps you can take to maximize your returns. First, keep an eye on CD rates; APYs differ from lender to lender, and it pays to get the best rate available. Second, deposit as much as you can (responsibly) when you open a long-term CD, as that will result in heftier returns over time. Finally, if you’re worried about liquidity, there are no-penalty CDs that don’t charge early withdrawal fees, but the trade-off could be a slightly lower rate.