When considering investing your six-figure sum of money, conventional wisdom may advise against depositing it into a certificate of deposit (CD) account due to the potential for lower returns compared to the stock market. However, the current economic climate presents a unique situation.
Inflation has recently risen after declining from decades-high levels in 2022, and interest rates remain high but are paused, with a possible rate cut on the horizon. Unemployment numbers have increased, and stock market performance has been volatile. Against this backdrop, some savers may prefer the safety and predictability of a CD account.
To determine the potential earnings from a $50,000 deposit, we’ve calculated interest rates for various terms against today’s top rates. Assuming no early withdrawal penalties, here are the results:
– 3-month CD at 4.30%: $529.04
– 6-month CD at 4.45%: $1,100.39
– 9-month CD at 4.30%: $1,603.98
– 1-year CD at 4.40%: $2,200.00
– 18-month CD at 4.16%: $3,152.23
– 2-year CD at 4.10%: $4,184.05
– 3-year CD at 4.10%: $6,405.60
– 5-year CD at 4.15%: $11,272.61
As you can see, the interest earnings on a $50,000 CD are substantial, with returns worth more than $500 for short-term CDs and over $11,000 for long-term ones. These returns are reliable and predictable, as rates won’t change once the account is opened.
CDs offer an added layer of safety due to FDIC insurance up to $250,000 per account. If you’re looking for a stable return on your money without dealing with market volatility, exploring CD accounts could be worth considering.
Before investing, weigh all options carefully and consider alternatives like high-yield savings or money market accounts, especially when investing a large sum of money that may also perform well in those vehicles.
Source: https://www.cbsnews.com/news/how-much-interest-can-a-50000-cd-earn-august-2025