How much interest can a $15,000 short-term CD account earn if opened this July?
Summary
A short-term certificate of deposit (CD) account can earn more interest than a regular savings account this July. For example, putting $15,000 into a short-term CD can generate several hundred dollars in interest within a year while still allowing access to the money after the term ends.Key Facts
- Regular savings accounts currently offer very low interest rates, around 0.38%.
- Short-term CDs offer higher fixed interest rates, ranging from about 3.95% to 4.17% depending on the term length.
- A $15,000 deposit could earn around $146 in 3 months or $626 in 1 year with top CD rates.
- Terms offered include 3 months, 6 months, 9 months, and 1 year.
- Interest earned depends on the CD’s fixed rate and the length of the term.
- Savers should shop around to find the best rates and be aware of withdrawal penalties that could reduce earnings.
- Short-term CDs provide a balance between earning higher interest and maintaining access to funds within a year.
- Online platforms make it easier for savers to compare CD rates and open accounts quickly.
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