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Looking for a low-risk way to put your money to work for you? A certificate of deposit could be just the tool you need. Putting your money in a CD allows you to get a guaranteed return in exchange for keeping your cash in the account for a certain period or period.
CD rates begin to decline after months of sitting above a 5% annual percentage yield, or APY. But there are still plenty of accounts with prices at – or above – that level. If you have some extra money in your savings that you won’t need to access for a while, putting it on a CD now can help you maximize your earnings.
For example, if you have $1,000, you might want to put it in First Internet Bank of Indiana’s one-year CD, which currently has one of the highest CD APYs of all the banks we track.
Here’s How Much You Can Earn by Depositing $1,000 into First Internet Bank of Indiana’s 1-Year CD
If you deposit $1,000 right now into First Internet Bank of Indiana’s one-year CD at 5.15% APY, you’ll have earned $51.50 in interest by the time your CD matures.
Other deposit amounts
If you can set aside more than $1,000, you’ll earn even more. Here are some examples of how much interest you can earn if you deposit larger amounts into this CD. (Note: First Internet Bank of Indiana’s minimum deposit requirement for CDs is $1,000.)
| CD term | Amount deposited | APY | Interest earned | Balance at maturity |
| 1 year | $1,000 | 5.15% | $51.50 | $1,051.50 |
| 1 year | $2,000 | 5.15% | $103.00 | $2,103.00 |
| 1 year | $5,000 | 5.15% | $257.50 | $5,257.50 |
| 1 year | $10,000 | 5.15% | $515.00 | $10,515.00 |
Other CD terms
First Internet Bank of Indiana offers CDs with other terms, including six months, 18 months, 36 months and 60 months. This is how your earnings look with these terms:
| CD term | Amount deposited | APY | Interest earned | Balance at maturity |
| 6 months | $1,000 | 5.03% | $24.84 | $1,024.84 |
| 18 months | $1,000 | 4.83% | $73.72 | $1,073.72 |
| 36 months | $1,000 | 4.45% | $139.53 | $1,139.53 |
| 60 months | $1,000 | 4.35% | $237.26 | $1,237.26 |
Other CDs of high interest to consider
CD prices are favorable right now, but they are likely to drop in the coming weeks and months. By locking in one of today’s top prices now, you can protect your earnings against these drops and maximize your earning potential.
Here are a few other CDs you might want to consider and what your earnings would look like after a year if you deposit $1,000:
| Term | APY | Bank | Interest earned | Balance at maturity |
| 1 year | 5.05% | America First Credit Union | $50.50 | $1,050.50 |
| 1 year | 5.00% | Community Federal Credit Union | $50.00 | $1,050.00 |
| 1 year | 4.80% | Marcus of Goldman Sachs | $48.00 USD | $1,048.00 |
| 1 year | 4.75% | BMO Alto | $47.50 | $1,047.50 |
How to choose the right CD for you
Getting a good interest rate is important, but it’s not the only thing to consider when comparing CDs. Consider these factors as well.
- Penalty for early withdrawal: CDs work best if you leave your money alone during the term. If you need to withdraw cash before the end of the term, you may pay an early withdrawal penalty. This can cost as much as a few weeks to a few months of interest, so look for a CD term that fits your savings timeline. Or consider a no-penalty CD, which may not have as high an APY but won’t charge you if you need your money before the CD expires.
- Other fees: In addition to early withdrawal penalties, there may be other fees associated with the account. Pay attention to the fine print to see if there are additional costs, such as a monthly maintenance fee, that come with the CD.
- Federal Deposit Insurance: Getting a CD at a bank backed by the Federal Deposit Insurance Corporation (FDIC) means your money is insured for up to $250,000 if something happens to the bank. The same applies to credit unions insured by the National Credit Union Association (NCUA). Opening a CD at an FDIC- or NCUA-insured institution means your money will be safer.
- Minimum deposit requirements: Some banks may require you to deposit a certain amount to open a CD. This can be anywhere from $500 to several thousand dollars. Limit your search to accounts with claims you can reach.
Are CDs still worth the hype?
CD rates have risen steadily since March 2022, when the Federal Reserve regularly raised the benchmark federal funds rate to combat record inflation. When the Fed raises this rate, banks often do the same to stay competitive and increase their cash flow. This means that savers can enjoy high prices on consumer products such as CDs and savings accounts. At one point, the best CD rates we track at CNET were as high as 5.65% APY for select terms.
But after 11 rate hikes, the Fed paused rate hikes in July 2023 as inflation began to show signs of cooling, and it has held them steady ever since. In response, CD rates have plateaued and trended downward since late 2023.
The Fed indicated that a rate cut could be on the way in September 2024. With a weak jobs report in July, some economists have called for an emergency rate cut before the Fed’s scheduled meeting in September, which could bring CD rates down even further.
Since your rate is locked in on the day you open a CD, opening a CD now can protect your earnings against future price drops.