Here's how much interest a $10,000 2-year CD account will earn if opened this August
Summary
A 2-year certificate of deposit (CD) opened in August with $10,000 can earn savers about $830 to $880 in interest by the time it matures. These CDs offer a fixed interest rate, protect the initial money, and are insured up to $250,000 by the FDIC, but the money cannot be withdrawn early without a penalty.Key Facts
- A 2-year CD requires locking in money for 24 months to earn interest.
- Interest rates for 2-year CDs currently range from about 4.10% to 4.30%.
- With $10,000 invested, expected interest earned ranges from $836.81 to $878.49.
- Penalties apply if the money is withdrawn before the 2-year term ends.
- Online banks usually offer higher CD rates due to lower costs than physical banks.
- CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account.
- This type of account can protect savings from market ups and downs during economic uncertainty.
- The rates mentioned are typical now but can vary slightly depending on the bank chosen.
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