How much will a $20,000 2-year CD account earn if opened now?
Savers can earn a significant amount of interest by depositing $20,000 into a 2-year CD this summer.Depositing money into a certificate of deposit (CD) account will require some sacrifice on behalf of the saver. To earn the interest the account offers, savers will need to keep their money untouched in the account for the full CD term (or length). Withdraw even a portion of it before the account matures, and you'll get stuck with an early withdrawal penalty that could wipe out all or most of the interest earned on the account to date. While this can be manageable for small amounts with CD terms of just a few months, it becomes much more challenging to do so with large deposit amounts and accounts of longer terms, such as one year or more.
But will that loss of accessibility be worth it? If you're considering a five-figure deposit, like $20,000, into a 2-year CD account, for example, it could be. The interest-earning possibilities here are significant and could be valuable for many savers, especially those looking for a reliable return and stability in today's unpredictable economic climate. To better determine this type of CD account's worth, then, it can be useful to calculate the interest earnings. Savers may be surprised at how much they can potentially make.
Start earning more interest on your money with a high-rate CD here.
How much will a $20,000 2-year CD account earn if opened now?
Opening a CD account online makes sense, especially in today's rate climate, in which rate cuts are widely expected later this summer. Online banks tend to have lower maintenance costs than banks with physical locations. Those savings can then be passed on to savers in the form of higher interest rates on CDs and high-yield savings accounts. A quick look around online, then, shows 2-year CD account rates comfortably over 4%. Here's what a $20,000 deposit would earn for each readily available rate:
$20,000 2-year CD at 4.10%: $1,673.62 for a total of $21,673.62
$1,673.62 for a total of $21,673.62 $20,000 2-year CD 4.15%: $1,694.45 for a total of $21,694.45
$1,694.45 for a total of $21,694.45 $20,000 2-year CD at 4.40%: $1,798.72 for a total of $21,798.72
So savers can earn at least $1,673 with a $20,000 2-year CD if opened this June, and potentially more if they take the time to shop around for a high-rate CD online. That said, with the likelihood of interest rate cuts growing for when the Federal Reserve meets this summer, and the chances of those rate cuts impacting what savers can earn with CDs, it behooves savers who are considering this type of account to be proactive. These high rates and great returns may not last much longer.
Get started with a long-term CD online today.
What about a $20,000 1-year CD account?
While the potential to earn more than $1,600 on your funds may sound attractive, it can be daunting to keep your money frozen for 24 months in a CD. If that doesn't sound manageable, a 1-year CD account will cut the time you lose access to your funds in half – and still result in a sizable return, albeit a lower one than the 2-year CD. Here's what earnings on a $10,000 1-year CD account would look like instead:
$20,000 1-year CD at 4.40%: $880.00 for a total of $20,880.00
$880.00 for a total of $20,880.00 $20,000 1-year CD at 4.45%: $890.00 for a total of $20,890.00
$890.00 for a total of $20,890.00 $20,000 1-year CD at 4.66%: $932.00 for a total of $20,932.00
Although the returns here aren't as high as the 2-year CD option, they're still significant and they'll allow savers to earn more on their money while still giving them protection for the next year against any market uncertainty, which may be all savers require right now.
The bottom line
A $20,000 2-year CD account comes with returns over $1,600 if opened now while a 1-year CD account for the same amount comes with interest over $800. But these rates and the interest-earning opportunities won't be around forever – or even, potentially, into the fall. So, if you want to earn more on your money and can afford to keep it frozen in an account for a year or longer, a long-term CD could be the smart place to park your funds right now.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
Meta hires four more OpenAI researchers, The Information reports
(Reuters) -Meta Platforms is hiring four more OpenAI artificial intelligence researchers, The Information reported on Saturday. The researchers, Shengjia Zhao, Jiahui Yu, Shuchao Bi and Hongyu Ren have each agreed to join, the report said, citing a person familiar with their hiring. Earlier this week, the Instagram parent hired Lucas Beyer, Alexander Kolesnikov and Xiaohua Zhai, who were all working in OpenAI's Zurich office, the Wall Street Journal reported. Meta and ChatGPT maker OpenAI did not immediately respond to a Reuters request for comment. The company has recently been pushing to hire more researchers from OpenAI to join chief executive Mark Zuckerberg's superintelligence efforts. Reuters could not immediately verify the report.
Yahoo
9 minutes ago
- Yahoo
Is Danaher's M&A Premium Already Priced In?
Danaher Corporation (NYSE: DHR) is a global science and technology innovator focused on designing, manufacturing, and marketing professional, medical, industrial, and commercial products and services. Following the 2023 spin-off of its Environmental & Applied Solutions segment (now Veralto), Danaher has transformed into a pure-play life sciences and diagnostics company, operating through three primary segments: Biotechnology, Life Sciences, and Diagnostics. Warning! GuruFocus has detected 4 Warning Signs with DHR. Biotechnology (~30% of FY2024 revenue) includes Danaher's bioprocessing and genomic reagents businesses, led by brands like Cytiva and Pall, serving pharmaceutical and biotech companies in biologics production and Sciences (~25% of revenue) offers analytical instruments, microscopy, and lab automation tools used by academic institutions, research labs, and clinical diagnostics developers. Key platforms include Leica Microsystems, SCIEX, and Beckman Coulter Life (~45% of revenue) comprises molecular diagnostics, core laboratory diagnostics, and point-of-care testing systems. Notably, Cepheidone of Danaher's flagship brandsoffers rapid molecular diagnostic testing platforms, particularly for infectious diseases like COVID-19, influenza, and tuberculosis. Danaher reported a better-than-feared quarter, beating both top and bottom line estimates significantly and maintaining its annual guidance. In Q1 FY2025, the company's total sales declined by 1% YoY to $5,741 million from $5,796 million in the previous year's quarter. The decline was due to -1.5% impact from foreign exchange translation, which was partially offset by 0.5% growth through acquisitions and flat core revenue growth. The revenue from the Biotechnology segment grew by 6% YoY to $1,612 million, driven by an increase in core sales from high-growth markets due to a rise in demand. The Life Sciences segment saw a decline of 3.5% YoY to $1,680 million due to a decrease in core sales in the genomics consumables business. Revenue from the Diagnostics segment declined by 3% YoY to $2,449 million due to a decline in the sales of the molecular diagnostic business and lower sales in the China region. The adjusted operating profit declined by 50 bps YoY to 29.6% in the quarter due to product mix, administrative cost structure, currency exchange rates, and acquisition Corporation's Growth & Cash Flow Danaher is positioned as a leading provider of life sciences, diagnostic, and biotechnology equipment after spinning off its environmental business (Veralto) in late 2023. Management's guidance for FY2025 assumes relatively stable end-market demand for the rest of the year (similar to Q1 levels). Against this backdrop, I believe Danaher should grow modestly in 2025, reflecting both macro headwinds (tariffs, academic budget cuts) and continued strength in critical segments. I have mentioned the guidance provided by the management below, and my thesis that should help the company achieve it. For fiscal 2025, Danaher reaffirmed core revenue growth of roughly +3% year-over-year. This is consistent with management's view that market demand (globally) will be relatively consistent with Q1, despite tariffs and other pressures. Adjusted diluted EPS guidance was set at $7.60$7.75 (vs. $7.68 consensus). Notably, management raised its Bioprocessing (biotech) growth forecast to the high-single-digits for 2025 (from a prior 67% outlook). Bioprocessing is Danaher's fastest-growing segment. Robust demand for biologic drug development kits and reagents drove higher Q1 results and should continue to drive growth for the remainder of FY2025. Furthermore, the segment is emerging from the destocking cycle, which should help drive sales. In contrast, the Life Sciences segment forecast was trimmed to essentially flat growth, as funding uncertainties slowed academic and government sales (particularly in the U.S.), and China's medical equipment sector has experienced some softness. This should offset the healthy growth in the Bioprocessing segment. However, any rebound in global R&D spending (or continued Chinese stimulus) could surprise on the upside. The Diagnostics segment (especially Cepheid's molecular tests) is expected to see modest growth: Cepheid's respiratory test sales are forecast to reach around $1.7 billion for 2025, but production volume will return to a normal seasonal level after Q1. Overall, Danaher's portfolio remains tilted toward high-growth medical and diagnostics markets, which underpins its steady outlook despite industry headwinds. A key uncertainty is trade policy: Danaher estimates that current U.S. and European tariffs could add roughly $350 million in costs in 2025. However, the company has long worked to offset these costs via its Danaher Business System (DBS), regionalized manufacturing, and pricing strategies. The company should absorb much of the tariff impact through cost actions and supply-chain adjustments (e.g., surcharges or shifting production) rather than curtailing R&D or major initiatives. Because Danaher's products (lab instruments, diagnostics, and biotech consumables) are often mission-critical in healthcare, I believe its end markets will remain resilient even under tariff pressure. In short, tariffs represent a moderate headwind, but Danaher should largely neutralize the impact by expense reductions and operational flexibility. Margins in the upcoming quarters are expected to contract largely due to seasonality in Cepheid's respiratory testing business. Cepheid is one of Danaher's higher?margin units, and Q2 respiratory kit revenue is assumed to be only about $250 million (vs. ~$625 million in Q1). This sharp seasonal drop in high-margin sales, plus normal diagnostic restructuring costs (e.g., the management of China's reimbursement changes), drives the lower quarter?on?quarter profit margin. In sum, I believe the company's margins should continue to decline and improve in the back half of 2025. As a company built on decades of disciplined capital deployment, Danaher's ability to acquire and successfully integrate businesses has been one of its defining competitive advantages. Flagship acquisitions like Cepheid and Pall have meaningfully strengthened Danaher's diagnostics and bioprocessing platforms, but they also introduce inherent integration risks. These include short-term pressures on margins, incremental R&D and SG&A costs, and the complexities of aligning acquired operations with Danaher's operating structure. While such challenges are typical of any acquisitive strategy, Danaher's track record sets it apart. Over the past 30 years, the company has repeatedly demonstrated its ability to extract synergies, improve productivity, and scale acquisitions effectively, largely driven by the Danaher Business System (DBS). This system institutionalizes continuous improvement, cost efficiency, and cultural integration across its portfolio. Though former CEO Larry Culp played a pivotal role in establishing this M&A discipline, the company's current leadership remains strongly committed to DBS principles, which continue to guide its post-acquisition integration efforts. Moreover, Danaher doesn't pursue acquisitions purely for scale; it focuses on high-quality, strategic assets that complement existing platforms and offer long-term value creation. While integration may temporarily weigh on profitability, especially in the form of restructuring expenses, near-term dilution, or elevated investments in innovation, these are often calculated trade-offs for future operating leverage and market expansion. In essence, what might be viewed as a risk is also one of Danaher's greatest strengths; its consistent ability to turn acquired assets into high-margin, growth-focused businesses that reinforce its leadership in life sciences and diagnostics. As of March 31, 2025, investor activity around Danaher reflected a balanced mix of strategic repositioning and continued confidence in the company's long-term potential. Notably, renowned value investors like Joel Greenblatt (Trades, Portfolio) (+29.03%), Wallace Weitz (Trades, Portfolio) (+23.17%), and Arnold Van Den Berg (Trades, Portfolio) (+14.62%) significantly increased their holdings, signaling optimism about Danaher's focused life sciences and diagnostics trajectory. Ken Fisher (Trades, Portfolio) also added modestly to his position (+1.23%), reinforcing steady institutional support. While some investors like Jefferies Group (Trades, Portfolio), Mario Gabelli (Trades, Portfolio), and George Soros (Trades, Portfolio) trimmed their stakes. Danaher is currently trading at a forward P/E of 25.5x and 22.9x on FY2025 and FY2026 estimated EPS of $7.70 and $8.57, respectively, which is below its five-year average forward P/E of 29.9x. On an EV/EBITDA basis, Danaher trades at approximately 18xhigher than peers such as Thermo Fisher Scientific (P/E ~15x, EV/EBITDA ~13x) and Agilent Technologies (P/E ~21x, EV/EBITDA ~15x). While Danaher's valuation premium may appear elevated relative to peers, it reflects the company's consistent execution, higher exposure to recurring revenue from consumables, and strong margin profile. The market seems cautiously optimistic, pricing in steady growth expectations. For FY2025, Danaher's outlook implies stable and controlled expansion, led primarily by strong bioprocessing demand. Although adjusted operating margins are expected to decline in Q2 due to seasonal normalization in the high-margin Cepheid business, a recovery is anticipated in the latter half of the year. Danaher's long-standing execution discipline, anchored by the Danaher Business System (DBS), equips it to offset macro pressures through operational efficiency and agile supply chain management. With a focused portfolio in mission-critical life sciences and diagnostics, Danaher remains well-positioned to deliver modest yet resilient growth in 2025, supported by strategic capital deployment and a strong competitive moat. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
WIRED
13 minutes ago
- WIRED
OpenAI Loses Four Key Researchers to Meta
Jun 28, 2025 4:16 PM Mark Zuckerberg has been working to poach talent from rival labs for his new superintelligence team. Photograph:Four OpenAI researchers are leaving the company to go to Meta, two sources confirm to WIRED. Shengjia Zhao, Shuchao Bi, Jiahui Yu, and Hongyu Ren have joined Meta's superintelligence team. Their OpenAI Slack profiles have been deactivated. The Information first reported on the departures. It's the latest in a series of aggressive moves by Mark Zuckerberg, who is racing to catch up to OpenAI, Anthropic and Google in building artificial general intelligence. Earlier this month, OpenAI CEO Sam Altman said that Meta has been making 'giant offers' to OpenAI staffers with '$100 million signing bonuses.' He added that, 'none of our best people have decided to take them up on that.' A source at OpenAI confirmed the offers. Hongyu Ren was OpenAI's post-training lead for the o3 and o4 mini models, along with the open source model that's set to be released this summer, sources say. Post-training is the process of refining a model after it has been trained on a primary dataset. Shengjia Zhao is highly skilled in deep learning research, according to another source. He joined OpenAI in the summer of 2022, and helped build the startup's GPT-4 model. Jiahui Yu did a stint at Google DeepMind before joining OpenAI in late 2023. Shuchao Bi was a manager of OpenAI's multimodal models. The departures from OpenAI come shortly after the company lost three researchers from its Zurich office, the Wall Street Journal reported. OpenAI and Meta did not immediately respond to a request for comment. This is a developing story. Please check back for updates .
