Certificate of deposit (CD) accounts come in all different lengths (or terms). Ranging from as short as three months to as long as 10 years, there’s likely a CD term that’s right for you and your financial goals. For many savers, a short-term CD (which matures in less than a year) has been the better option in recent years. Thanks to an interest rate higher than most long-term counterparts (a reversal from historic trends) and an early maturity date that gave savers flexibility that they wouldn’t get with other terms, short-term CDs were generally advantageous.

And they still can be, even in today’s unique economic climate. With inflation steadily rising again and interest rate cuts on pause, many would benefit from making a moderate deposit into a short-term CD now. Not only will it result in a respectable return on their money, but it will also protect those funds from volatile market conditions during the CD term. To better appreciate the former, however, it helps to know how much a $5,000 short-term CD can earn now. Below, we’ll break down the potential earnings.

Start by seeing how much more you could be making with a top CD here.

How much will a $5,000 short-term CD earn now?

CD earnings are determined by three primary factors: the amount of money deposited, the interest rate and the length of the CD term. Here, then, is what savers can expect to earn with a $5,000 CD opened now, in mid-February 2025, on the assumption that no early withdrawal penalties apply, based on readily available interest rates:

• 3-month CD at 4.50%: $55.32 upon maturity for a total of $5,055.32 
• 6-month CD at 4.45%: $110.04 upon maturity for a total of $5,110.04
• 9-month CD at 4.35%: $162.25 upon maturity for a total of $5,162.25
• 1-year CD at 4.40%: $220.00 upon maturity for a total of $5,220.00

While those returns may not seem substantial, they’re guaranteed, thanks to the fixed-rate nature of CDs. And the rates are many times higher than what’s available with traditional savings accounts. For comparison purposes, a traditional savings account comes with an average rate of just 0.41% now. That makes even the lowest rate on the above list around 960% higher. With that as an alternative, and with hundreds of dollars worth of interest to potentially be made with a CD, the benefits of opening a short-term CD now become even clearer.

Get started with a short-term CD here now.

What about high-yield savings accounts?

A $5,000 deposit into a high-yield savings account, on the other hand, is a viable alternative. Interest rates on this account type are comparable to the top CDs and savers won’t need to give up access to their funds in the way they would have to with a CD. But high-yield savings accounts have variable interest rates that are likely to change each month, depending on market conditions and Federal Reserve monetary policy, so the returns here will be harder to predict and risky to rely upon. Still, they’re worth considering for those savers looking to earn a high rate while maintaining access to their funds.

Explore your high-yield savings account options here.

The bottom line

A $5,000 short-term CD can result in a few hundred dollars earned for savers if opened now. But with elevated interest rates on pause, savers should also explore their high-yield savings account options to better determine which is the most appropriate for their current financial goals. In some instances, splitting funds between both account types could also be beneficial. So consider both and, if deciding on a CD, be sure to deposit only an amount of money that you can easily part with for the full term to avoid having to pay a costly early withdrawal penalty.