How much interest would a $15,000 CD earn in 3 years?
Are you looking for a good place to store $15,000 that's both safe and provides a meaningful return? Certificates of deposit (CDs) are compelling savings vehicles. They typically offer stronger returns than traditional savings accounts, but they're just as safe. In fact, just like a savings account, most CDs come with FDIC or NCUA insurance on balances up to $250,000.
So, what's the difference?
When you deposit money into a CD, you'll need to wait until the account's term ends to access it or you may pay a penalty. But, there's a bright side to that. As inflation cools and interest rate cut expectations circulate, CDs give you a way to lock in today's strong interest returns for years to come.
So, if you're looking for a home for $15,000 in savings, you should strongly consider a 3-year CD. Not only will you earn a meaningful return, you'll be able to count on that return for the next three years. But, how much money would you actually make? That's what we will calculate below.
Earn a strong return by opening a 3-year CD now.
How much interest would a $15,000 CD earn in 3 years?
"Since the Federal Reserve has raised the benchmark interest rate several times to fight inflation, it has helped CD rates," explains Steve Azoury, ChFC, and owner of the financial services firm Azoury Financial. So, what can you expect to earn on a $15,000 3-year CD?
Some of the highest paying 3-year CDs on the market are paying between 4.50% and 4.61% APYs. Here's how much you would earn by depositing $15,000 into one of these accounts:
- A 3-year CD at 4.61% APY: Your account would generate $2,171.60 in interest over its 3-year term. That means your total balance would be $17,171.60 at the end of your term.
- A 3-year CD at 4.50% APY: Your account would generate $2,117.49 in interest over its 3-year term. That means your total balance would be $17,117.49 at the end of your term.
So, depending on the the APY you lock in, you could earn anywhere from $2,117.49 to $2,171.60 in interest by opening a 3-year CD with a $15,000 deposit today. But, you may want to act quickly. "Locking it in now, if you're anticipating rates going down, would be beneficial," says Azoury.
Open a 3-year CD now so you don't miss out on today's high rates.
Here's how much you would have made by depositing $15,000 into a 3-year CD in June 2021
To truly understand the importance of locking in a high, long-term CD rate now it helps to look to the recent past. Specifically, what do those high interest rates mean in terms of actual returns when compared to rates experienced just a few years ago?
According to the Federal Reserve Bank of St. Louis, a 3-year CD paid 0.35% APY in June of 2021. At that rate, your CD would earn just $158.05 in interest over its 3-year term, bringing the total account value to $15,158.05 upon maturity.
So, by opening a $15,000 3-year CD with a leading financial institution today, you'll earn between $1,959.44 and $2,013.55 more than you would have earned by opening a 3-year CD three years ago.
Earn a meaningful return with a 3-year CD today.
The bottom line
You can earn more than $2,100 in interest by opening a $15,000 3-year CD with leading financial institutions at the moment. That's more than 10 times more interest than you would have earned by opening a similar account just three years ago. And, with inflation cooling and interest rate cuts expected ahead, it may be a good time to take advantage of today's high rates while they're still here. Compare top-paying CDs now.
