How Much Interest Will a $10,000 CD Earn in 12 Months?

A $10,000 CD for 12 months earns $440 in interest at 4.4% APY, $400 at 4% and $500 at 5%. Because APY already includes compounding, the 1-year math is simple: multiply $10,000 by the APY. Top 1-year CDs paid about 4.25% to 4.6% APY in October 2026, or roughly $425 to $460. Our CD calculator handles any amount, rate and term.

Here's what $10,000 earns at different rates and terms, and what you keep after taxes.

$10,000 CD interest by rate and term

These figures assume the rate is stated as APY and interest stays in the CD until maturity.

APY	6 months	12 months	24 months
3.5%	$173.49	$350.00	$712.25
4.0%	$198.04	$400.00	$816.00
4.4%	$217.63	$440.00	$899.36
4.6%	$227.41	$460.00	$941.16
5.0%	$246.95	$500.00	$1,025.00

A 6-month CD earns a little less than half of the 12-month figure. A 24-month CD earns a bit more than double, because the first year's interest earns interest in the second year.

How the math works

APY, or annual percentage yield, is the return over one year including compounding. So for any term:

Interest = Deposit × ((1 + APY)^(months ÷ 12) − 1)

For 24 months at 4.4%: $10,000 × (1.044² − 1) = $10,000 × 0.089936 = $899.36.

For 6 months at 4.4%: $10,000 × (1.044^0.5 − 1) = $217.63.

APY vs. interest rate

Banks often list both an interest rate and an APY. The interest rate doesn't include compounding; the APY does. A CD with 4.4% APY compounded monthly has an interest rate of about 4.31%. Always compare CDs by APY, since it reflects what you'll actually earn.

Does compounding frequency matter?

Not much, once you compare by APY. Daily or monthly compounding is already built into the APY figure. Two CDs with the same 4.4% APY earn the same $440 on $10,000 over a year, whatever the compounding schedule.

Where it can matter is payout. Some CDs let you take interest monthly instead of leaving it in the account. Taking it out means it won't compound, so your total earnings will be slightly lower over multi-year terms. On a 24-month CD at 4.4%, taking interest out each month earns about $862.74 instead of $899.36.

How much you keep after taxes

CD interest is taxed as ordinary income. If you're in the 22% federal bracket, you keep 78% of what you earn. A single filer is typically in that bracket with taxable income between $50,400 and $105,700 in 2026.

APY	6 months after tax	12 months after tax	24 months after tax
3.5%	$135.33	$273.00	$555.55
4.0%	$154.47	$312.00	$636.48
4.4%	$169.75	$343.20	$701.50
4.6%	$177.38	$358.80	$734.10
5.0%	$192.62	$390.00	$799.50

These figures cover federal tax only. Most states also tax CD interest. With a 5% state tax on top of 22% federal, $440 of interest becomes about $321.

A few tax details:

• Interest is taxed when it's credited, not when the CD matures. A 24-month CD that credits interest monthly is taxed on each year's interest that year.
• You'll get a Form 1099-INT if you earn $10 or more in interest from a bank in a year. See irs.gov for details.
• CDs in an IRA grow tax-deferred (or tax-free in a Roth IRA) as long as you follow the account rules.

CD vs. high-yield savings when rates fall

A CD locks in your rate. A high-yield savings account (HYSA) can change its rate at any time. That difference matters most when rates are falling.

Here's an example over 12 months with $10,000:

Option	Rate path	Interest earned
12-month CD	4.4% APY, locked	$440.00
HYSA, rates hold	4.0% APY all year	$400.00
HYSA, rates fall gradually	4.0%, then 3.75%, 3.5%, 3.25% by quarter	$362.46
HYSA, rates fall faster	4.0%, then 3.5%, 3.0%, 2.5% by quarter	$324.85

If savings rates drift down by a quarter point each quarter, the CD earns about $78 more. If rates fall faster, the CD's lead grows to about $115.

If rates rise, the HYSA could come out ahead. Nobody knows for sure which way rates will move. The Federal Reserve's decisions influence savings rates, and you can follow them at federalreserve.gov.

When a CD tends to make sense

• You won't need the money until a known date, like a home down payment next year.
• You want to lock in today's rate in case rates fall.
• You've already built an emergency fund elsewhere.

When a high-yield savings account tends to fit better

• The money is your emergency fund and must stay available.
• You might need it before the CD would mature.
• The HYSA rate is about the same as the CD rate, so locking in gains little.

Watch out for early withdrawal penalties

If you break a CD early, the bank typically keeps some of your interest. On 12-month CDs, a penalty of 90 days of interest is common, though it varies.

Suppose you open a $10,000 12-month CD at 4.4% and withdraw after six months. You've earned about $217.63. A 90-day penalty is about $108.49, leaving about $109. In some cases, a penalty can cut into your principal if you withdraw very early.

Some banks offer no-penalty CDs. Their rates are usually a little lower, but you can withdraw after a short waiting period without losing interest.

Ways to get more from your CDs

• Shop beyond your bank. Online banks and credit unions often pay more than big branch banks.
• Build a CD ladder. Split $10,000 across several terms, such as 3, 6, 9 and 12 months. As each matures, you can reinvest or use the cash.
• Watch the maturity date. Many CDs automatically renew at the bank's current rate, which may be lower. You typically have a short grace period to withdraw or switch.
• Stay within FDIC limits. Coverage is $250,000 per depositor, per insured bank, per ownership category. Check a bank's status at fdic.gov.

Calculate your own CD earnings

Enter your deposit, APY and term into our CD calculator to see interest earned and your balance at maturity. If you're saving toward a goal over time, the savings goal calculator shows how long it may take. Still building a cash cushion? Our guide on how much emergency fund you need covers where to keep it.