Here’s How Much $1,000 Would Earn in a 6-Month CD Right Now

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You can find many great CDs with low (or no) deposit minimums. See how just $1,000 can grow with a high-yield CD. 

A CD, short for certificate of deposit, is like a high-yield savings account that you can only withdraw from at certain times. In the case of a 6-month CD, you would need to leave the money alone until the six months are up. Then, you can withdraw your funds or roll them over into another 6-month CD.

As with anything else, the rates on CDs will vary by bank and term. Typically, short-term CDs have the best rates because the bank isn’t locked into offering you a high rate if the market turns.

How much you deposit can also impact your rate. With $1,000, some of the top CDs will be out of reach due to deposit minimums, but many others are still an option. Here’s what you might earn with $1,000 if you open a 6-month CD right now.

High-yield 6-month CDs

Although the national rate cap is over 7%, even the best CDs have rates in the 4.50% to 5.50% range. (For a little context, this is comparable to an excellent rewards credit card, except you don’t need to buy anything.)

To look at some actual numbers, here’s what you’d earn with $1,000 in a high-yield 6-month CD based on the APY:

At the low end, you’re looking at a total interest earning of $22.71, which is great for just letting your money sit there. If you can find a higher-yielding CD, perhaps at your local credit union, you could potentially get that up by another $4 or $5.

(I assumed that the CD compounds monthly in these calculations. Some may actually compound daily, so you could maybe boost these totals by a few cents in that case.)

Average 6-month CDs

Now, above we looked at some of the best CDs. That’s an important distinction to make, because many, many institutions are not going to offer you rates anywhere near this high.

The national average APY for 6-month CDs is currently 1.49%. I’ve seen CD APYs from national banks and credit unions alike as low as 0.03%.

Stay away from these low-rate CDs. Here’s how little $1,000 will grow in an “average” 6-month CD:

As you can see, you’re earning pennies on the dollar compared to what you earn with the higher rates above, especially at the low end. Worse, you’re actually losing money since inflation is currently 3.4%.

How to find the best CDs

The simplest way to find awesome CD rates is to browse our picks:

Best 6-Month CD RatesBest 1-Year CD RatesBest 3-Year CD RatesBest 4-Year CD RatesBest 5-Year CD Rates

Another easy way to find CDs is to check out the offerings by your current banking institution. Assuming you’re happy with its customer service — and the rates are competitive — opening a CD with your current bank can make transfers simple.

If your current bank isn’t offering great rates, check out the offerings from your local credit unions. Since they are member-owned, credit union profits often go into better interest rates instead of investor pocketbooks.

Folks who don’t mind skipping brick-and-mortar services may have good luck checking out online banks. The lack of branches means they have more budget for higher rates.

Whether you have $10,000 or $1,000 to deposit, the high interest rates right now mean CDs can be fantastic opportunities. Just make sure you avoid those average CDs and go with a competitive rate.

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