How much will a $10,000 CD earn if opened this October?

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It wasn't that long ago that interest rates on certificates of deposits (CDs) accounts were barely noticeable. During the height of the pandemic, interest rates were slashed and returns on CDs often came in under 1%. As the pandemic waned, however, inflation surged and interest rates were hiked to combat it. That led to CD rates rising exponentially, with most lenders offering rates in the 4% to 5% range while select others offered rates even higher .

So what do CDs look like this October, after the Federal Reserve issued a rate cut in September? Despite that larger-than-anticipated reduction, CD interest rates are still elevated now, even if they're not quite as high as they were a year ago. This makes now a smart time to open one, particularly if the Fed proceeds with additional interest rate cuts in November and December, as anticipated.

Before acting, however, it helps to know what you can earn by depositing $10,000 into a CD this October. Below, we'll break down the returns.

See how much more you could be earning on your money with a top CD here now .

How much will a $10,000 CD earn if opened this October?

One great feature of a CD account is the fixed interest rate it comes with. Not only will this fixed rate allow you to protect your money and earn a high return in a cooling rate climate, but it will also allow you to accurately calculate your exact earnings upon the account's maturity .

Here's what a $10,000 CD will earn if opened this October, tied to some available interest rates and terms :

• 6-month CD at 5.10%: $251.83 for a total of $10,251.83
• 1-year CD at 4.75%: $475.00 for a total of $10,475.00
• 18-month CD at 4.40%: $667.21 for a total of $10,667.21
• 2-year CD at 4.20%: $857.64 for a total of $10,857.64
• 3-year CD at 4.20%: $1,313.66 for a total of $11,313.66
• 5-year CD at 4.35%: $2,372.64 for a total of $12,372.64

As demonstrated, you can make hundreds of dollars in just a few months by depositing $10,000 into a CD right now. But the big money returns come with long-term accounts. With a 3-year CD, you can earn more than $1,300 and with a 5-year CD you can earn more than $2,300. So calculate your earnings now and start shopping for a CD online today. These rates are unlikely to last much longer so it makes sense to lock one in while you still can.

Get started with a CD today .

What about high-yield savings accounts now?

High-yield savings accounts have often been considered a smart alternative to CDs. These accounts have comparable interest rates but they don't operate the same way CDs do, so you won't lose access to your money the way you would with a locked CD account.

But the benefits of a high-yield savings account are waning. Because these accounts have variable interest rates, subject to change with the rate climate, your returns are likely to decline both this October and in the months to follow. Instead, it's more valuable to simply deposit that money into a fixed-rate CD while you can still easily find a high rate.

The bottom line

A $10,000 CD can earn between $252 and $2,373 if opened this month, depending on the term of the account you choose. And it makes sense to act quickly, as rates could decline as additional cuts are issued. Just make sure that your deposit – whether it be $10,000 or some other amount – is adequate for your financial situation. Since these accounts are locked you'll need to pay what could be a costly early withdrawal penalty to regain access to your money.