How much interest can a $40,000 short-term CD earn now (and is it worth opening)?

MoneyWatch: Managing Your Money How much interest can a $40,000 short-term CD earn now (and is it worth opening)? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson May 22, 2026 / 1:55 PM EDT / CBS News Add CBS News on Google Significant interest earnings on a $40,000 short-term CD can pile up quickly in today's elevated rate climate. sakchai vongsasiripat/Getty Images If you've been able to save a large amount of money – such as $40,000 – in recent years, then you probably want to keep a close eye on it. And investing it now, when stock returns are high, is understandable. After all, returns on stocks have historically been as high as 16%. But stocks are also known for big losses, which isn't really a concern when depositing this much money into a high-rate savings account. If you deposit it into a certificate of deposit (CD) account, for example, not only will you not have to worry about your principal being impacted, but you'll also grow your interest with a rate of 4% or higher right now.The catch with CD accounts, however? You need to commit to leaving your funds in the account until the account has matured or an early withdrawal penalty could wipe out all of the interest earned to that point. So that rules out depositing your $40,000 into this account type, right?Not necessarily. With a short-term CD account, you'll hit your maturity date in 12 months or less, depending on the term you choose. But you'll still earn a rate of 4%, approximately, making this a profitable, short-...