Here's How Much A $40,000 CD Could Pay You In 2026

A lethargic job market and pressure from President Donald Trump may mean that Americans can expect to see more rate cuts from the Federal Reserve. While the lower cost of borrowing may help stimulate the economy (and possibly impact Social Security in unexpected ways), it also means banks and other financial institutions will offer less money for people to open new Certificate of Deposit (CD) savings accounts.

However, even with CD rates in a downward spiral, there are still high-yield savings accounts that can provide someone with a $40,000 nest egg with hundreds of extra dollars in compound interest. Per a CBS News MoneyWatch analysis, the following returns can be expected for someone who deposits $40,000 into a CD account: $384.42 with a three-month 3.9% rate, $811.76 with a six-month 4.1% rate, $1,194.10 with a nine-month 4% rate, and $1,6410 with a one-year 4.1% rate.

While such returns might seem tame, they are far more guaranteed than speculating on stock or timing the value of gold. In fact, the only thing that could incur a loss in a CD investment is making a withdrawal before the CD account matures. Should that happen, an account holder could be hit with a financial penalty, depending on the CD's terms. 

You won't make as much with a one-year CD account in early 2026 as you probably would have in July 2025, when the annual percentage yield (APY) offered for a 12-month CD could be as high as 4.5%. With that rate, a $40,000 account can get $1,800 after interest (via the Bankrate CD Calculator).

Indeed, ever since the Federal Reserve cut interest rates by half a point in September 2024, the median for one-year CD rates for 21 online banks and credit unions analyzed by NerdWallet, institutions that typically pay higher APYs than regular brick-and-mortar banks, fell from 4.6% to 3.82% in November 2025. With a 3.82% rate, a one-year CD account with $40,000 would earn another $1,528 upon maturity, and that was even before the Fed's third rate cut of 2025 took place in December.

Heading into 2026, there are still CD plans offering anywhere from 3.75% to 4.1% APR, per CNBC, while NerdWallet found CD accounts with rates as high as 4.27%. However, if interest rates continue to be slashed as some experts expect, those rates will drop even further. As such, now might be the best time for someone with surplus cash to shop around for a good rate.