Here's how much interest a $10,000 long-term CD can earn now
Summary
A long-term certificate of deposit (CD) lets savers earn a fixed interest rate over a set time, protecting their money from market ups and downs. For a $10,000 deposit, savers can earn hundreds to thousands of dollars in interest depending on how long they keep the CD.Key Facts
- A CD offers a fixed interest rate that stays the same until it matures.
- Typical interest rates for long-term CDs in June are around 4.15% to 4.20%.
- A $10,000 CD held for 18 months at 4.15% earns about $629 in interest.
- A 5-year CD at 4.20% can earn about $2,284 in interest.
- A 10-year CD at 3.90% can earn roughly $4,661 in interest.
- CDs require savers to lock up their money until maturity and may charge penalties for early withdrawal.
- CD interest is subject to taxes, which can affect total earnings.
- CDs are insured by the FDIC up to $250,000, providing security for deposits.
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