June 2028 may feel like the distant future and, in a way, it is. After all, 24 months is a long time, and much can and will happen in the economy between June 2026 and then. But that may not be a bad thing for savers. 

Depending on the account type they open right now, in fact, it may be the defining feature and benefit. With a certificate of deposit (CD) account with a 2-year term, for example, savers will enjoy extended protection on their principal while growing their interest with a fixed rate of over 4%. So, for example, if you have $20,000 that you don't want to invest but still want to protect and grow, a CD account may be worth serious consideration. The interest earnings on an account of this size and length will be significant, helping to offset the costs savers are contending with elsewhere, thanks to elevated inflation and higher borrowing costs.

This account type won't be free of sacrifice, however, as savers will need to leave their funds in the account frozen until the maturity date. Withdrawing even a portion of them prematurely will trigger an early withdrawal penalty, which could be significant on account of this size and length. To better determine the value of keeping your $20,000 in this account type, it helps to first know the interest-earning potential it represents. And that's simple to calculate thanks to the account's fixed rate. Below, we'll do the math.

See how much interest you could be earning on your money with a top CD account here.

Here's how much interest a $20,000 2-year CD account can earn savers now

CD interest rates will vary by term and lender, underscoring the importance of shopping around before getting started. Here's how much interest a $20,000 2-year CD account can earn now, calculated against three readily available high rates and the assumption that no early withdrawal penalties are issued against the accounts:

• $20,000 2-year CD at 4.00%: $1,632.00 upon maturity
• $20,000 2-year CD at 4.10%: $1,673.62 upon maturity
• $20,000 2-year CD at 4.16%: $1,698.61 upon maturity

Savers can earn between $1,630 and $1,700, approximately, with a $20,000 2-year CD if they open one right now. That's more than $800 per year or around $70 per month earned just by keeping the $20,000 frozen in the CD. 

Just understand the limitations here before getting started, as that early withdrawal penalty could be steep on an account of this size. If you need to maintain access to your funds in case of an emergency, a high-yield savings or money market account – both of which come with similar rates to the top CDs – may be viable alternatives worth evaluating.

Learn more about your top savings account options online now.

How much interest can $20,000 earn in a traditional savings account over the next two years?

The Federal Deposit Insurance Corporation (FDIC) this week released new information on national interest rates, and it underscored the importance of not keeping your money in a traditional savings account. With an average rate there of just 0.38% now – unchanged from May – savers stand to earn just $152.29 over the next two years with a $20,000 deposit made now, assuming they don't take any money out of the account and that the variable rate holds, which is unlikely. 

Compared to this account type, a CD is exponentially more profitable. Leave little to no money in this account type, then, especially when you have multiple viable alternatives that are outpacing inflation to choose from instead.

The bottom line

Savers can expect to earn upwards of $1,600 with a $20,000 2-year CD now and close to $1,700, depending on the bank. That interest will be guaranteed, the principal will be protected, and savers will enjoy financial peace of mind over the next 24 months, at which point economic conditions may improve, and they can shift their savings approach. So, while June 2028 may feel far away, the value of putting your $20,000 into this account type may outweigh the temporary accessibility sacrifice.