Here's how much interest a $100,000 2-year CD account will earn savers now
Summary
Putting $100,000 into a 2-year certificate of deposit (CD) account can earn savers about $8,681 to $8,889 in interest at current top rates between 4.25% and 4.35%. CDs offer a fixed interest rate and protect the initial deposit, but withdrawing money early will cause penalties.Key Facts
- Current top interest rates for 2-year CDs range from 4.25% to 4.35%.
- At these rates, a $100,000 deposit would earn between $8,681 and $8,889 after two years.
- CDs guarantee the interest rate and principal protection for the term of the deposit.
- Early withdrawal from a CD results in penalties that can reduce earnings.
- High-yield savings accounts offer slightly lower rates around 4.10%, with earnings that depend on rate changes.
- Unlike CDs, high-yield savings accounts usually allow easy access to funds without penalties.
- Inflation is currently above the Federal Reserve's 2% goal, and interest rates could rise further this year.
- Online banks often provide some of the most competitive CD rates.
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