How much does a $25,000 CD earn at 5% for 1 year?

$26,279.05

A $25,000 certificate of deposit at 5% for 1 year matures at $26,279.05 — $1,279.05 of interest.

How it is worked out

A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.

$25,000 × (1 + 5% ÷ 12)^(12 × 1) = $26,279.05

APY 5.12%. Interest earned: $1,279.05.

Open the full CD calculator to use your own figures.

Similar questions

Questions

How much does a $25,000 CD earn at 5% for 1 year?
A $25,000 certificate of deposit at 5% for 1 year matures at $26,279.05 — $1,279.05 of interest. $25,000 × (1 + 5% ÷ 12)^(12 × 1) = $26,279.05.
How is this worked out?
A CD compounds at a fixed rate for a fixed term. Monthly compounding is the usual case, and the APY is what that compounding is worth over a year — always slightly above the stated rate.
Can I use my own figures?
Yes — the CD calculator takes any values and shows the full result.