How much interest can a $100,000 5-year CD earn now?

With stock market returns averaging between 10% and 16% over the past decade, savers with $100,000 in their bank account may understandably be considering investing it right now. Even the top interest rates on savings accounts like certificates of deposit (CDs), for example, top out around 4%, significantly below those investing returns. 

At the same time, a CD can provide something most other savings accounts and investments cannot – a guaranteed return thanks to the account's fixed interest rate. And that predictability and security could be exactly what many savers need right now. With a 5-year CD, in particular, they can safeguard their funds for half a decade and earn a sizable amount of interest in the interim.

Locking $100,000 into a 5-year CD account won't be the right move for each saver, however, especially when robust investing returns are still readily available. For those who want to earn interest with a fixed-rate product, however, and who can afford to part with their six figures for the next five years, it can still be worthwhile. To better determine the precise value, it's critical to begin with the interest-earning potential. And that's easy to determine thanks to the CD's fixed rate. So, how much interest can a $100,000 5-year CD earn if opened this September? That's what we'll calculate below.

See how much interest you could be earning by opening a CD account here.

How much interest can a $100,000 5-year CD earn now?

CD interest rates will vary by lender and term, which is why it's so important to shop around before making any deposits, especially if there's $100,000 at play. Rushing to lock in the first high rate you find online could mean leaving significant interest earnings on the table and, to regain access to your funds, you'll need to pay an early withdrawal fee. 

Understanding that, here's what savers can expect to earn with a $100,000 5-year CD that's opened now, calculated against three readily available interest rates and the assumption that the account will be maintained without penalty up until the maturity date in 2031:

• $100,000 5-year CD at 4.35%: $23,726.37 upon account maturity
• $100,000 5-year CD at 4.40%: $24,023.07 upon account maturity
• $100,000 5-year CD at 4.45%: $24,320.35 upon account maturity

Savers will earn more than $23,700 with a $100,000 5-year CD that's opened now and possibly more than $24,300, depending on the rate they're able to find and lock in. This could be a significant return for those unwilling to try their luck by investing now or in the near future. But it will also require a significant financial commitment that not every saver will be able to credibly meet. 

If you're unsure of your flexibility, then consider shopping around for different terms or different deposits. An online marketplace can also help effectively present all of your options so you can make an informed choice.

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The bottom line

There are tens of thousands of dollars at play for savers who lock away their $100,000 into a 5-year CD account right now. This return will be predictable, reliable and lucrative for those who don't want to risk any of their principal by investing or by purchasing real estate. That said, a $100,000 5-year CD represents a serious financial commitment that only the most serious savers should consider. If you're not confident in your ability to see the account through to the maturity date without penalty, it may be worth exploring different terms or deposits or even alternative options like high-yield savings accounts, instead.