Locking away a portion of your money in today's inflationary economic environment, on the surface, may not feel like a smart decision. With inflation now at its highest level in three years, wages softening and the potential for an interest rate hike not insignificant, flexibility and access to your funds can feel especially important. At the same time, protecting your money should also be prioritized. And, if you can do so with a high-interest rate savings vehicle, that could be worth serious consideration, especially if there's a large amount of money at stake, like $40,000.

This is where a certificate of deposit (CD) account enters the conversation. CDs have fixed interest rates, many of which are hovering over 4% currently. These accounts will protect your principal, will be insured up to $250,000, and the rates won't change even if the rate climate does. So they could be the perfect place to store your money right now. And with a long-term CD, in particular, savers will have extended protection for their money as this unique account type comes with terms ranging from 18 months or longer.

To better decide on the value a long-term CD can provide for your $40,000, then, it helps to begin with the interest-earning potential associated with an account of this size. Below, we'll outline the returns that savers can expect to see.

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

Calculating CD interest earnings is simple to do thanks to the account's fixed rate. But determining how long to keep the money in the account will require some work, as each saver's goals are different. Considering that you'll need to pay an early withdrawal penalty to regain access, choosing the right term is key to your CD success. 

To better inform your decision-making, here's how much you can expect to earn with a $40,000 long-term CD account now, calculated using some of the top rates associated with five different terms and the assumption that no fees or penalties eat away at your earnings:

• $40,000 18-month CD at 4.20%: $2,546.28 upon maturity
• $40,000 2-year CD at 4.16%: $3,397.22 upon maturity
• $40,000 3-year CD at 4.15%: $5,189.53 upon maturity
• $40,000 5-year CD at 4.20%: $9,135.86 upon maturity
• $40,000 10-year CD at 4.30%: $20,940.09 upon maturity

Savers stand to earn more than $2,500 with this account, with an 18-month version that will mature in 2027 or more than $20,000 with a 10-year option. But with thousands of dollars available here – no matter the term in question – and with that return guaranteed, this could be a viable (and profitable) home for your $40,000 right now. 

Consider, too, shopping around online before getting started. While these are some of the top rates available for each term, you may be able to find slightly higher ones by using an online marketplace, which will allow you to compare rates, terms and lenders all in one spot.

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The bottom line

Freezing your $40,000 in a long-term CD account will require sacrifice, patience and a strategic approach to avoid an early withdrawal penalty. But with the returns here worth thousands and, potentially, tens of thousands of dollars, the effort could be well worth it. Consider reviewing your CD account options online now and take the time to diligently shop around for rates and lenders. With the interest rate climate holding steady right now, you can thoroughly research your options without having to rush to lock in a competitive rate.