How much interest can a $10,000 CD account earn now vs. April 2025?
Summary
Interest rates on certificates of deposit (CDs) have fallen compared to one year ago, so a $10,000 CD opened now will earn less interest by maturity than one opened in April 2025. However, rates remain around 4%, making CDs and high-yield savings accounts still attractive options for saving money, depending on your preferences for fixed or variable interest.Key Facts
- Interest rates on CDs peaked alongside high inflation and the Federal Reserve's high interest rates.
- CD rates have dropped since last year, reducing potential earnings on a $10,000 deposit.
- In April 2025, a 1-year CD at 4.40% would have earned $440 in interest; now, a 1-year CD at 4.10% would earn $410.
- Rates for other CD terms (9 months to 3 years) have also decreased but remain near 4%.
- CDs have fixed interest rates that do not change during the term, providing predictable returns.
- High-yield savings accounts offer similar interest rates but have variable rates that can go up or down.
- The Federal Reserve is unlikely to cut rates in 2026, so savings returns may remain steady.
- Online banks often offer better rates on CDs and savings accounts than traditional banks with physical branches.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
