Here's how much interest a $10,000 18-month CD will earn savers who act now
Summary
An 18-month certificate of deposit (CD) with a $10,000 deposit can earn savers about $620 to $640 in interest at current rates around 4.15% to 4.20%. While CDs lock the money for the term, they offer a fixed interest rate, whereas high-yield savings accounts offer similar returns with more access but variable rates.Key Facts
- Current top interest rates for 18-month CDs range from 4.15% to 4.20%.
- A $10,000 deposit in an 18-month CD at these rates earns roughly $622 to $637 in interest by maturity.
- CDs protect the principal and fix the interest rate until January 2028.
- Early withdrawal from a CD can result in fees that may reduce or eliminate interest earned.
- High-yield savings accounts currently offer rates close to 4.10%, with flexible access to funds.
- Savings account rates can change over time, making future interest uncertain.
- CDs may be better for those seeking guaranteed returns and who can lock money away temporarily.
- Savers might consider dividing money between CDs and savings accounts depending on their needs.
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