How much interest will an $18,000 long-term CD account earn if opened this July?
Summary
Opening an $18,000 long-term certificate of deposit (CD) account in July can earn a savers thousands of dollars in interest. Long-term CDs have fixed interest rates above 4%, which are higher than typical savings accounts and provide protection for the deposited money over time.Key Facts
- Long-term CD interest rates currently sit above 4%.
- An $18,000 CD can earn from about $1,145 (18 months) up to $9,423 (10 years) in interest by maturity.
- Interest rates for these CDs range roughly from 4.15% to 4.30%.
- CDs have fixed interest rates, so earnings are guaranteed if the account is held to maturity.
- Early withdrawal from a CD may result in penalties, reducing earnings.
- Online banks often offer higher CD interest rates than traditional brick-and-mortar banks.
- Using online marketplaces helps compare multiple banks, rates, and terms easily.
- CDs protect the original deposited amount (principal) for the duration of the term.
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