If you've been able to save a large amount of money – such as $40,000 – in recent years, then you probably want to keep a close eye on it. And investing it now, when stock returns are high, is understandable. After all, returns on stocks have historically been as high as 16%. But stocks are also known for big losses, which isn't really a concern when depositing this much money into a high-rate savings account. If you deposit it into a certificate of deposit (CD) account, for example, not only will you not have to worry about your principal being impacted, but you'll also grow your interest with a rate of 4% or higher right now.

The catch with CD accounts, however? You need to commit to leaving your funds in the account until the account has matured or an early withdrawal penalty could wipe out all of the interest earned to that point. So that rules out depositing your $40,000 into this account type, right?

Not necessarily. With a short-term CD account, you'll hit your maturity date in 12 months or less, depending on the term you choose. But you'll still earn a rate of 4%, approximately, making this a profitable, short-term home for your five figures. And you'll maintain flexibility and be able to pivot your savings strategy relatively quickly, too. To best determine the value of a $40,000 short-term CD account now, it helps to know the interest-earning potential it offers. And thanks to the fixed interest rate that a CD employs, that's easy to determine. Below, we'll crunch the returns.

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How much interest can a $40,000 short-term CD earn now?

CD interest rates will vary by term, though they're all approximately the same right now. Here's how much interest a $40,000 deposit can earn now, calculated against the readily available top rates for four different terms and the assumption that no maintenance fees or penalties are issued against the account:

• $40,000 3-month CD at 3.90%: $384.42
• $40,000 6-month CD at 4.10%: $811.76
• $40,000 9-month CD at 4.00%: $1,194.10
• $40,000 1-year CD at 4.10%: $1,640.00

Savers with this much money can earn just under $400 in approximately 90 days or more than $1,600 by this time next year. And the interest will be guaranteed, the principal will be protected, and the account, thanks to the FDIC, will be insured up to $250,000, too. All savers need to do is keep their funds in the account untouched until the maturity date arrives on the calendar. 

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Is a CD worth opening compared to a traditional savings account?

If you've built up your savings in a traditional savings account, you've likely done so without the assistance of any major interest earnings the account provides. With an average rate of 0.38%, earnings on this account are barely noticeable now. Or, put another way, even the lowest CD rate outlined above is more than 900% higher than the rate tied to a traditional account. With a traditional savings account now, not only are you not keeping pace with inflation (over 3% in the latest reading), but you're technically losing money by not keeping your funds in a high-rate alternative like a CD or high-yield savings account. No matter where you ultimately decide to house your $40,000, then, make sure to avoid keeping it in a traditional account.

The bottom line

A $40,000 short-term CD will allow savers to weather today's economic uncertainty while simultaneously allowing them to earn interest worth hundreds of dollars or more. If this sounds like the ideal home for your money, then, consider shopping around for rates and accounts now. With online marketplaces listing multiple lenders, rates, terms and fees all in one location, it's easier than ever to get started and, more importantly, start earning more interest on your money.