As of 2022, 37% of Americans did not have enough money in a savings account to cover an unplanned $400 expense, according to the Federal Reserve. If you’re sitting on $1,000, you’re in much better shape than a good percentage of the adult population.
You may be inclined to take your $1,000 and put it into a CD. But you should know that because CDs typically charge penalties for early withdrawals, you should only put money into one that you’re sure you don’t need for near-term expenses or emergency fund purposes.
If that’s the case, though, then you may be wondering if $1,000 is enough to put into a CD. The answer is that generally speaking, $1,000 is enough for a CD — but it may not be enough for every CD.
Some CDs have a minimum deposit requirement
Some banks will allow you to put $50 or $100 into a CD. Others might require a $500 minimum deposit. And certain banks might reserve their top CD rates for savers who can meet a $2,500 or $5,000 deposit requirement.
Our Picks for the Best High-Yield Savings Accounts of 2024
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American Express® High Yield Savings 
APY 4.10%
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APY 4.10%
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Min. to earn $0 |
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Capital One 360 Performance Savings 
APY 4.10%
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APY 4.10%
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Min. to earn $0 |
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CIT Platinum Savings 
APY 4.70% APY for balances of $5,000 or more
Min. to earn $100 to open account, $5,000 for max APY
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APY 4.70% APY for balances of $5,000 or more
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Min. to earn $100 to open account, $5,000 for max APY |
To make a long story short, you may run into issues with certain banks if you only have $1,000 to put into a CD. But in many cases, $1,000 is more than enough to meet the minimum deposit requirement (which may even be $0, since some banks don’t have one).
Your best bet is to shop around for a CD based on the deposit you’re able to make. Check out this list of the top CD rates today. If you scroll through, you’ll see the minimum deposit requirements.
Should you bother opening a CD if you only have $1,000?
You might assume that if you’re limited to a $1,000 deposit, you’ll only be able to earn so much money on a CD. And that’s true. If you lock in a 12-month CD at 4.5%, with $1,000, you’re looking at earning $45.
That’s not a life-changing amount of money. But it’s not nothing.
An extra $45 could be your ticket to a fun night out with friends. It could pay for your streaming services for a month. Or, it could be extra cash you keep on hand for unplanned expenses. So there’s no reason not to earn as much interest on your money as you can, even if it’s not a ton.
Another benefit of opening a $1,000 CD? You may be less likely to withdraw that money on a whim.
Say you’re saving up to buy a new car in a couple of years. If you put your $1,000 into a savings account, you can withdraw it at any time without a penalty. And you might end up taking out some or all of that money to do things like go to concerts with friends, thereby putting that new car even more out of reach.
With a CD, the early withdrawal penalty might deter you from spending the money you’re saving for a car. That alone is a good reason to open a CD, even if you only have limited funds to work with.
