How Much Can a $15,000 CD Earn Today? Is It Worth It?

Understanding the Current CD Rate Landscape

As American borrowers anticipate the first interest rate cut of 2025, which is expected to occur during the upcoming Federal Reserve meeting, savers find themselves in a different situation. Since 2022, they have benefited from rising interest rates due to an extended period of rate hikes. This trend only began to reverse in the final months of 2024, leading to increased returns on savings vehicles like certificates of deposit (CDs). While last year's rate cuts provided some relief, the high rates that were previously available remain significant.

Now, with the expectation of another rate cut this week and more possible later in the year, the potential for earning interest through CDs is set to decline. This makes it crucial to consider locking in a high rate while it's still available. If you're thinking about depositing $15,000 into a CD, it's essential to evaluate the interest-earning potential before making a decision.

Calculating Potential Earnings from a $15,000 CD

Today’s CD rates are unlikely to stay at their current levels for long, even if any adjustments come gradually. Therefore, it's wise to secure a high rate while it's still accessible. Below are examples of how much interest a $15,000 CD account could earn based on current rates and assuming no early withdrawal penalties or fees:

• $15,000 3-month CD at 4.25%: $156.90
• $15,000 6-month CD at 4.40%: $326.45
• $15,000 9-month CD at 4.30%: $481.20
• $15,000 1-year CD at 4.25%: $637.50
• $15,000 18-month CD at 4.05%: $920.42
• $15,000 2-year CD at 4.06%: $1,242.73
• $15,000 3-year CD at 3.97%: $1,858.36

These figures illustrate the substantial interest-earning potential of a CD of this size. Moreover, the interest is guaranteed because CDs typically offer fixed rates. As long as the money remains in the account for the full term, you can expect to earn hundreds or even thousands of dollars in interest.

Is a $15,000 CD Account Worth It?

If the interest earnings outlined above align with your financial goals and you can commit to keeping the funds untouched for the entire term, then opening a $15,000 CD account may be a worthwhile decision. Unlike high-yield savings accounts or money market accounts, which feature variable rates, CDs provide a predictable return. While stock market investments might offer higher returns, they also come with greater volatility and risk.

By investing in a CD now, you can take advantage of the current high rates and adopt a "set it and forget it" approach. This can be especially beneficial if you're looking for a stable, dependable way to grow your savings, even amid uncertain market conditions.

Making the Right Decision

In conclusion, a $15,000 CD account can be a valuable option for many savers, particularly given the current elevated interest rates. However, it's important to consider your financial goals, ability to keep the money locked away for the full term, and alternative savings options before making a decision. With rate cuts on the horizon, the time to act is now. By carefully evaluating your options, you can make an informed choice that aligns with your long-term financial strategy.