Images by Getty Images; Illustration by Austin Courrege/Bankrate
Key takeaways
- Having $100,000 in a CD earning 4% annual percentage yield (APY) would earn you around $4,000 in interest in one year.
- This is more than double the $1,930 you’d earn with $100,000 in a one-year CD that earns the approximate national average of 1.93% APY.
- Some large brick-and-mortar banks are offering paltry rates of around 0.03%, which would earn a mere $30 in interest in a year with a balance of $100,000.
If you opt for a one-year certificate of deposit (CD) with a competitive 4% APY, you’ll earn $4,000 in interest on a principal deposit of $100,000.
CDs usually have fixed interest rates, so you can calculate what you might earn using a CD calculator.
Here’s an example of what you might earn with $100,000 in a competitive CD, in a CD that pays the national average rate and in a CD from one of the bigger banks.
| Type of 1-year CD | Typical APY | Interest on $100,000 after 1 year | Total value of CD with $100,000 opening deposit after 1 year |
|---|---|---|---|
| CDs that pay competitive rates | 4% | $4,000 | $104,000 |
| CDs that pay the national average | 1.93% | $1,930 | $101,030 |
| CDs from big brick-and-mortar banks | 0.03% | $30 | $100,030 |
Rates may change. Rates are accurate as of Dec. 8, 2025.
You’ll often find competitive APYs at online institutions, such as Marcus by Goldman Sachs and Alliant Credit Union. Additionally, some local credit unions and community banks may offer above-average APYs.
Competitive 1-year CD rates
If you were to deposit $100,000 into a one-year CD that pays a competitive APY of 4%, you’d have around $4,000 in interest when the term is up, for a total balance of $104,000.
- Type of account: 1-year CD
- Opening deposit: $100,000
- APY: 4%
- Total interest after 1 year: around $4,000
- Total value of CD after 1 year: around $104,000
For perspective, earning this competitive rate would give you around $2,000 more in additional interest than earning just the national average rate. Bankrate’s best one-year CD rates can come in handy for those looking to compare rates across banks.
National average 1-year CD rates
The national average APY for one-year CDs is 1.93% as of Dec. 8, 2025. Competitive CDs earn more than double this average.
Investing $100,000 in a one-year CD that earns a 1.93% APY would provide you with around $1,930 in interest when the CD matures — for a total balance of $101,930, as shown below:
- Type of account: 1-year CD
- Opening deposit: $100,000
- APY: 1.93%
- Total interest after 1 year: around $1,930
- Total value of CD after 1 year: around $101,930
1-year CD rates from big banks
Large banks with lots of branches tend to offer rock-bottom APYs on CDs and other deposit products. For instance, a standard one-year CD at Bank of America earns 0.03% APY and one at Chase Bank earns 0.01% (APYs may vary based upon zip code.) Not only are you not earning much interest, your money is losing purchasing power as inflation lingers around 3%.
If you were to deposit $100,000 in a one-year CD that pays a yield of 0.03%, it would earn only around $30 upon maturity — for a total balance of $100,030.
- Type of account: 1-year CD
- Opening deposit: $100,000
- APY: 0.03%
- Total interest after 1 year: around $30
- Total value of CD after 1 year: around $100,030
In all, $100,000 in a competitive one-year CD could earn you around $3,970 more in interest than the same amount in a CD that pays a very low yield.
Your money is losing purchasing power in a low-yield account
As of September 2025, the rate of inflation year-over-year is 3%. If you’re not earning more on your savings than this, you’re losing purchasing power.
This rate of inflation means that in September 2025, you need $103,012.68 to buy what $100,000 would have gotten you a year before.
If you’d put your $100,000 in September 2024 in a one-year CD that earned 4%, you’d have $104,000 in September 2025 and your purchasing power would be protected.
Finding a 1-year CD with the best rate
The most competitive yields can often be found at online banks, which don’t have to bear the overhead expenses of running branches. Credit unions may offer favorable rates as well.
In addition to finding the best rate, you may also want to consider the early withdrawal penalty, if there is a chance you may need to access funds before maturity.
$100,000 qualifies you for a jumbo CD
If you’re investing $100,000 or more in a CD, look into jumbo CDs, which may pay higher rates than standard CDs. Some banks offer a tiered APY structure that rewards higher balances with better rates.
Are 1-year CDs safe?
As long as you’re with a federally insured financial institution, your money in a CD is safe up to $250,000 per depositor, per insured institution, per ownership category. This guarantees you won’t lose your money in the event of a bank failure.
The Federal Deposit Insurance Corp. (FDIC) is the agency that insures deposits at member banks, while the National Credit Union Administration (NCUA) insures deposits at member credit unions.
Other accounts that are beating inflation
In addition to CDs, it’s possible to find other deposit products with yields that are well ahead of the rate of inflation. These include high-yield savings accounts as well as competitive money market accounts.
Bottom line
While all one-year CDs have the same term length, they don’t all offer the same yield potential. When you’re thinking about locking up a huge sum of money like $100,000, you need to invest some extra time to compare a wide range of options.
Cast a much wider net than big brick-and-mortar banks to include lesser-known banks and credit unions that may not have any branches. As long as your full deposit is covered by FDIC insurance or NCUA insurance, you’ll stand to earn a lot more money without worrying about the potential of losing it.
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