A savings account worth $40,000 by any measure can be considered a success. But in the economic terrain of recent years, marked by decades-high inflation and elevated borrowing costs, saving that much money is an even more considerable achievement than it may have been otherwise. So, if you were able to build your account while keeping your debts minimal at the same time, you may now understandably be looking for a safe and profitable home for those funds. A certificate of deposit (CD) account may increasingly look like a viable option.

Interest rates on CDs are competitive now, with many terms coming with rates of 4% or higher. And the rates are fixed, allowing for precise interest-earning projections. Because the rate is fixed, the account is a naturally attractive option for those savers looking to protect their money from market fluctuations, which are especially pronounced now. With a long-term CD, in particular, savers can lock their money away for 18 months or longer. This will not only protect their $40,000 but, thanks to the extended interest-earning timeline, grow it significantly with compounding interest.

Before getting started, it may be helpful to know the exact interest earnings a $40,000 long-term CD account offers now. Below, we'll crunch the numbers.

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

CD interest rates vary based on the term and the lender being used. Here's how much a $40,000 long-term CD account will earn in interest now, calculated against the top available rates for each term and the assumption that no fees or early withdrawal penalties are levied against the account:

• $40,000 18-month CD at 4.15%: $2,515.66
• $40,000 2-year CD at 4.16%: $3,397.22
• $40,000 3-year CD at 4.13%: $5,163.50
• $40,000 5-year CD at 4.15%: $9,018.09
• $40,000 10-year CD at 3.90%: $18,642.90

Savers can grow their $40,000 deposit by around $2,500 in just under two years or by around $19,000 over the next 10. Or they can find a middle ground with any of the other three CD rates and terms outlined above. With returns this large, however, and with them being guaranteed, not to mention the reduced stress of having to monitor the market each day, a CD could be the smart home for your $40,000 now. Just be sure to choose the right term, as an early withdrawal penalty for those savers who attempt to regain access to their money prematurely could be costly on account of this size.

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What about a high-yield savings account?

A high-yield savings account comes with an interest rate that's currently similar to the CD rates noted above and, unlike a CD, won't require savers to give up access to their funds. So that could be a better home for your $40,000, then, right? Not necessarily. 

While high-yield savings accounts have exponentially better rates than traditional accounts, like their counterparts, the rates here are variable and subject to change over time. And over 18 months or longer, rates will almost assuredly change compared to what they are now, perhaps considerably so. 

The CD rate, by comparison, will hold steady. That consistency and reliability are something most savers will prefer, especially for an amount like $40,000. So, evaluate your high-yield savings account options carefully, as they may not be as profitable and secure, long-term, as the aforementioned CD accounts will be.

The bottom line

A $40,000 long-term CD can earn thousands of dollars and possibly close to $19,000 if secured now at today's rates. While it will take time to earn these big returns and while it will require savers to temporarily sacrifice access to the funds, the end result could still be worth it. And, in the interim, savers will protect their principal from today's volatility and any market unknowns still ahead.