Certificates of deposit (CDs) are one of the safest ways to grow your money. The current yields on CDs are nowhere near the long-term returns of the stock market. However, you can still earn a lot of money with CDs if you invest a large amount -- and your returns are guaranteed.

So what would it take to earn $10,000 by investing in CDs today? It depends on the CD's interest rate, the term, and how much you invest. Let's look at a couple of scenarios and see if CDs are a good place for your money now.

5-year CD

The longer your money is invested, the more it'll grow. So let's assume you invest in a 5-year CD -- the longest term available at most banks.

The best 5-year CD rates are around 4.00%. At that rate, you'd need to invest $46,160 to earn $10,000 by the time your 5-year CD matured.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of February 14, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of February 14, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

1-year CD

You'd need to invest a lot more money in a 1-year CD to earn $10,000. That said, 1-year CDs have slightly higher APYs than 5-year CDs -- around 4.30% at the high end.

You'd need to invest about $233,000 to earn $10,000 from a 1-year CD paying 4.30%.

Want to earn the same interest rate as a CD without locking up your money for years? Check out our list of the best high-yield savings accounts, which pay up to 4.50%.

Hypothetical: 3.75% APY for 10 years

You can always reinvest your money in new CDs once the old ones mature. In other words, you can earn $10,000 over a much longer time frame than five years.

We don't know what interest rates will be in the future, but let's assume they drop about 25 basis points (as some experts predict) and then remain stable.

At a 3.75% APY, you could earn $10,000 over 10 years by investing about $22,500 in a 5-year CD, then moving that money to another 5-year CD once the first one matures.

Are CDs even worth it?

Certificates of deposit make sense if you have a large amount of cash that you need to keep safe for years while earning a low but guaranteed return.

For building your wealth, however, you're probably better off investing in the stock market. Since 1957, the U.S. stock market (as measured by the S&P 500 Index) has gained an average of 10% per year.

Stock returns fluctuate, and losses are guaranteed to happen sometimes. But if the S&P 500 were to gain 10% per year over the next five years, it would only take an investment of $16,400 to earn an additional $10,000.

CDs are great for people who are looking to preserve their wealth, rather than build wealth. However, most of us will need a higher return than 4% per year to achieve our biggest financial goals, like saving for retirement.

If you're new to stock market investing, consider opening a new brokerage account and purchasing a low-fee S&P 500 index fund. You'll instantly be invested in 500 of the biggest, most successful companies in the U.S. And if the stock market's past returns hold up, you'll be on track to earn far more money than you could with any CD.