Here's how much interest a $40,000 long-term CD account can earn now

A long-term CD account offers extended financial protection for your money, which is critical for those looking to deposit $40,000 right now. Jakub Krechowicz/sqback/Getty Images 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. …