Two years can be a long time in any economic climate, but especially so in the unique one millions of Americans find themselves in this June. In June 2024, for example, the Federal Reserve hadn’t cut interest rates at all that year. But by the end of the year, they had issued three cuts. And then cut rates another three times in 2025.
Now, however? Interest rate hikes are back in play. Inflation, meanwhile, after gradually declining in 2024 and 2025, is now back to its highest level since May 2023. Interest rates on select savings accounts, accordingly, are still high and holding steady. And geopolitical tensions and overseas conflicts have made long-term economic projections difficult to complete. In this climate, savers may be contemplating the ways they can protect and grow their money, not just for a few weeks or a few months, but for a few years.
A certificate of deposit (CD) account could be a way to do just that. With a 2-year CD, for example, savers can protect their principal for the next 24 months as the account is fixed with a rate that will remain constant through the maturity date. As a result, they won’t need to be concerned about any economic changes that cause rates to rise or fall during that period. Because of that fixed rate, they’ll also be able to precisely determine how much interest they’ll have accumulated by June 2028. How much interest can a 2-year CD earn if opened now, however? That’s what we’ll calculate below.
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How much interest can a 2-year CD earn if opened this June?
The top 2-year CD rate according to Bankrate is 4.16% now, though savers may find rates slightly higher or lower by shopping around online. Here’s how much interest savers can expect to earn at that rate over the next two years, calculated against a variety of deposits and the assumption that the account is maintained without penalty through the maturity date:
$1,000 2-year CD at 4.16%: $84.93 upon maturity$5,000 2-year CD at 4.16%: $424.65 upon maturity$10,000 2-year CD at 4.16%: $849.31 upon maturity$20,000 2-year CD at 4.16%: $1,698.61 upon maturity$25,000 2-year CD at 4.16%: $2,123.26 upon maturity$40,000 2-year CD at 4.16%: $3,397.22 upon maturity$50,000 2-year CD at 4.16%: $4,246.53 upon maturity
Savers can earn around $85 with this account over the next two years, around $4,250 with a $50,000 deposit, or somewhere in between, depending on how much money they’re comfortable leaving in the account.
It’s not just the interest-earning potential to focus on here, however, as a CD is one of the few accounts that will effectively safeguard your money from today’s market instability. And the account is also FDIC-insured up to $250,000, adding another layer of protection for savers. Still, it’s important to understand your limits, and that means only depositing an amount that you can easily part with for the full two years in order to avoid having to pay an early withdrawal penalty on the account.
Learn more about your current CD account options now.
The bottom line
The interest earnings available this June with a 2-year CD could be substantial, depending on the deposit being made. But the interest isn’t the only benefit to a CD account with this term, as savers can also depend on extended protection for their funds in a way that they can’t with variable interest rate account alternatives. Consider your CD account options carefully now, then, as this could be the best way to protect and grow your money not only this June but in the months and years still ahead.
