With interest rate hikes paused and inflation on the rise, many people are concerned about where the economy could be headed and how that could impact both the value of their money and their investments. As a result, lots of people are now looking for safe options that still earn a high rate of return on their money. 

While there are a few options to consider, certificates of deposit (CDs) are among the safest investments available right now. Part of that is due to the fixed annual percentage yields (APYs) that CDs come with. These rates are locked in for the full CD term, meaning that no matter what happens to the economy, your CD rate stays the same until maturity. 

As a result, CDs can be a great way to protect against possible rate drops and earn interest on your money, whether you’re saving for a vacation, wedding or home repair. But how much can you earn on a $5,000 deposit into a CD account right now? Here’s what you could earn on a CD with that deposit amount at today’s top rates. 

Find out what the top CD rates are now.

When you open a CD account, the interest you earn can compound either daily or monthly depending on the bank or credit union you open the account with. Over time, you earn interest on your initial deposit and any interest you’ve already earned, maximizing your returns. 

While rates vary on these deposit accounts, some of the top CD accounts offer rates above 4% currently. Here’s how much your $5,000 CD could earn by 2026 if you lock in one of the top rates available today: 

• 9-month CD at 4.35%: $162.25 for a total of $5,162.25
• 1-year CD at 4.40%: $220.00 for a total of $5,220.00
• 18-month CD at 4.16%: $315.22 for a total of $5,315.22

Note, though, that many CDs come with early withdrawal penalties that are charged if you withdraw money before the CD has matured. These penalties could impact the returns if you need to access your funds before the account reaches maturity. 

Earn more with one of today’s best CD accounts now.

How much would a $5,000 traditional savings account earn by 2026?

If you need more flexible access to your funds, a savings account could be an option worth considering. However, traditional savings accounts come with variable interest rates that can change over time and the rates on these accounts tend to be much lower than CDs. 

Right now, the average savings account offers a rate of 0.41%. Here’s what the returns on a savings account with a balance of $5,000 would earn over nine, 12 and 18 months at today’s average savings rate: 

• 9 months at 0.41% APY: $15.37 for a total of $5,015.37
• 12 months at 0.41% APY: $20.50 for a total of $5,020.50
• 18 months at 0.41% APY: $30.78 for a total of $5,030.78

If you deposited $5,000 into a CD for 18 months, you would earn about $284 more than you would by depositing that amount in a traditional savings account over 18 months. That makes CDs the better choice to maximize your return by 2026, provided that you can commit to the CD term. 

“There is no reason not to grow your money at a compounded rate of return,” says John Mason, CFP and president of financial planning firm Mason & Associates LLC. “We all start somewhere and it’s important to maximize your cash strategy, regardless of the dollar amounts.”

The bottom line

A $5,000 deposit into a CD account can earn anywhere from $162.25 to $315.22 by 2026 if you’re locking in one of today’s top rates. And, not only do CDs offer great rates right now, but they also provide a safe way to earn a return in an environment where economic and rate uncertainty are prevalent. Plus, the fixed rate of return means you know exactly what your CD will earn by the time it matures, which this type of deposit account a solid savings tool.