How much interest can $25,000 earn in a 2-year CD?

In a conventional savings or investing climate, depositing a large sum into a long-term certificate of deposit (CD) isn’t often the best choice for savers. After all, to earn interest on the account, you’ll need to commit to keeping the funds untouched for an extended period. And that will prevent you from pivoting your strategy as needed – or risk paying an early withdrawal penaltywhich can be substantial on an account worth $25,000. Even the most competitive CD rates, too, will often be outpaced by what can be made with stocks.

At the same time, the economic landscape of early April 2025 is far from conventional. Interest rates are still elevated, progress toward lowering inflation has stalled, stock market returns are volatile and geopolitical tensions and overseas conflicts have left many looking for safe and lucrative alternative homes for their money. A long-term, 2-year CD in this environment, then, may be worth exploring. And with a $25,000 deposit, the interest earnings can be substantial.

Before getting started, it helps to know what those interest earnings will actually look like. Thanks to the CD’s fixed interest ratethe math will be easy to calculate. Below, we’ll break down what savers need to know before getting started.

See how much interest you could be earning with a top CD account here.

How much interest can $25,000 earn in a 2-year CD?

The top interest rates available for 2-year CD accounts range from 3.95% to 4.05% right now, though savers may be able to find slightly higher rates by shopping around online. Here’s how much interest $25,000 can earn in one of these accounts, then, calculated against three readily available rates and the assumption that no fees or penalties reduce the interest earnings:

• $25,000 2-year CD at 3.95%: $2,014.01 upon maturity
• $25,000 2-year CD at 4.00%: $2,040.00 upon maturity
• $25,000 2-year CD at 4.05%: $2,066.01 upon maturity

Savers will earn just over $2,000 in 24 months with a CD account of this size if they act now. While $1,000 per year won’t make you rich, it will be guaranteed in a way that investments cannot offer, and your principal will remain the same. CD accounts are also FDIC-insured up to $250,000 per account, giving you plenty of federal protection here as well. For all of these reasons, then, this could be the right account in the right amount to consider opening now.

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Why a high-yield savings account may be worth considering

Would you prefer to earn a similar interest rate on your $25,000 without having to sacrifice access to your funds in case of an emergency? In this case, a high-yield savings account may be worth considering as an alternative.

These accounts have rates almost identical to the top CD accounts, but they’re structured to let you continue making deposits and withdrawals as needed. The catch? The rates on the accounts are variable and subject to change based on market conditions. While this may not be a concern currently with elevated interest rates on hold, it can be a detriment in a climate in which rates are declining, as they have been over the past 18 months. Carefully weigh the guaranteed interest the CD offers, then, versus the potential interest this account type can generate to determine which makes the most sense for your financial circumstances.

The bottom line

A $25,000 2-year CD can generate guaranteed interest of approximately $2,000 if opened now. But a high-yield savings account may be able to generate a similar return without savers having to forego access to their funds. At the same time, the latter account type could earn more or less, depending on how its rate responds to market conditions over the following 24 months. Evaluate both carefully, then, before making a final decision and consider speaking with a banking representative about the pros and cons of splitting your funds between both account typesas an alternative approach.