Interest rates were reduced three times in the final months of 2024 via the Federal Reserve, but they've been on hold ever since, thanks to a stubborn inflation rate and concerns over economic policies, among other factors. But the prospect of a rate cut later this summer is growing again. While most economists don't expect a rate reduction when the Fed meets again on June 17 and June 18, the chances of a cut at their July meeting seem possible, and the likelihood of a reduction in the bank's September meeting also looks significant right now.

While rate cuts will be received well by borrowers who have been contending with elevated rates for multiple years, they'll be greeted less warmly by savers. In the high-rate climate of recent years, savers with high-yield savings and certificates of deposit (CD) accounts were able to secure rates upwards of 5% on their money. Some savers were even eligible to open CDs with rates of 6% or 7%, making these accounts a safe and smart way to earn interest in an otherwise unpredictable economic climate. And if these savers opened one of these accounts with a large, five-figure amount like $10,000 and did so, in particular, with a long-term CD (which has a maturity date longer than 12 months), they may have been able to earn a substantial amount on their money, all for little effort made on behalf of the saver. 

Before taking action in today's economy, however, it helps for savers to know exactly how much they can stand to earn with one of these account types. Below, we'll do the math (and explain why a CD can still be valuable right now).

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How much would a $10,000 18-month CD earn if opened this June?

While not as favorable as what was available in the recent past, a $10,000 18-month CD does still come with a formidable return if opened now. Here's what it could make tied to three readily available interest rates (on the assumption that no fees or early withdrawal penalties are applied):

• $10,000 18-month CD at 4.16%: $630.45 for a total of $10,630.45 after 18 months
• $10,000 18-month CD at 4.05%: $613.61 for a total of $10,613.61 after 18 months
• $10,000 18-month CD at 4.00%: $605.96 for a total of $10,605.96 after 18 months

So, right now, savers could earn between $600 and $630 by opening a $10,000 18-month CD. But it's important to remember that this is a limited opportunity, as rates decline here, so will the potential returns. For context, here's what the same account type was earning when opened in July 2024:

• $10,000 18-month CD at 5.00%: $759.30 for a total of $10,759.30 after 18 months.
• $10,000 18-month CD at 4.75%: $720.90 for a total of $10,720.90 after 18 months
• $10,000 18-month CD at 4.50%: $682.54 for a total of $10,682.54 after 18 months

As can be seen by comparing what's available now versus what was readily available last summer, waiting around to open a CD would be a costly mistake. Instead, consider using this June as a time to shop around for rates and lenders to find the optimal CD account for your needs. But don't let the pursuit of a perfect rate cause you to miss out on today's opportunities, either, as you'll lose the interest-earning potential in the interim.

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The bottom line

A $10,000 18-month CD could leave you with hundreds of dollars in earned interest if opened now. Unlike alternatives like high-yield savings accounts with variable interest rates, that interest will be predictable and reliable upon CD account maturity. That said, it's worth being aggressive in your approach. With CD rates on the decline, locking in the highest rate for the longest available term may make the most sense for your finances right now.