"What's the interest-earning potential?" That's the question savers are always asking themselves before putting their money into a specific account type. And the answer, in recent years, was often "substantial." Thanks to the highest inflation rate in decades and, thus, the highest interest rates in more than 20 years to combat it, savers were able to earn upwards of 5% on vehicles like high-yield savings and certificates of deposit (CD) accounts. The latter type, in particular, had rates upwards of 6% for some specific savers, making them an obvious way to grow and protect your money.

But that was in 2023 and 2024. Towards the end of 2024, the Federal Reserve embarked on an interest rate cut campaign that impacted the returns savers were accustomed to with CDs. And that drop in interest-earning potential is likely to continue later this year as additional cuts are issued. 

That is, of course, unless savers act promptly to take advantage of today's still-elevated interest rate climate. One way to do so is with an 18-month CD, in particular. Before getting started, however, it's helpful to know the precise interest-earning potential of this CD term now, in early June 2025. Below, we'll do the math – and explain why this CD type is still worth opening now.

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Here's how much an 18-month CD can earn now

To determine how much money you can earn with a CD you'll need three primary numbers: the interest rate, the term (or length) of the CD account before hitting maturity and the amount deposited. Using those figures, then, here's what savers could expect to earn with an 18-month CD if opened now, tied to a few different deposit amounts and readily available interest rates:

• $1,000 CD at 4.16%: $63.04 for a total of $1,063.64 afer 18 months
• $1,000 CD at 4.05%: $61.36 for a total of $1,061.36 after 18 months
• $1,000 CD at 4.00%: $60.60 for a total of $1,060.60 after 18 months

• $5,000 CD at 4.16%: $315.22 for a total of $5,315.22 after 18 months
• $5,000 CD at 4.05%: $306.81 for a total of $5,306.81 after 18 months
• $5,000 CD at 4.00%: $302.98 for a total of $5,302.98 after 18 months

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

• $20,000 CD at 4.16%: $1,260.89 for a total of $21,260.89 after 18 months
• $20,000 CD at 4.05%: $1,227.22 for a total of $21,227.22 after 18 months
• $20,000 CD at 4.00%: $1,211.92 for a total of $21,211.92 after 18 months

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Why an 18-month CD is still worth opening

As illustrated above, savers can earn hundreds or even thousands of dollars with select 18-month CD accounts if opened now. And while that may be enough of a motivation to act promptly, it's not the only reason why an 18-month CD is worth opening now. Here are two others:

Extended protection against market uncertainty: No one knows where the interest rate climate is heading this summer, or in the months after, let alone six months to a year from now. But with an 18-month CD, that's less of a concern as savers will secure extended protection against market uncertainty thanks to the fixed interest rate that CD accounts come with. And, by the time the account matures, you'll hopefully have a better idea of where the market stands.

The alternatives are not as beneficial: High-yield savings accounts have comparable (but lower) interest rates than the top CD accounts do now. But high-yield savings account interest rates are variable, meaning that they'll decline alongside your interest earnings as the rate climate cools. Money market accounts have the same caveat, while traditional savings accounts have average rates . Compared to the 4%-plus that 18-month CDs come with, then, it becomes clear which is most advantageous for your money now.

The bottom line

With the potential to grow your money by hundreds (or even thousands) of dollars, the benefit of extended financial protection against market uncertainty and the unfortunate reality of low-rate alternatives, an 18-month CD could be the place to keep some of your money right now. Before getting started, however, be sure to calculate the exact amount you can comfortably part with for the full term to avoid having to pay any early withdrawal penalties or fees to regain access to your funds.