How much interest can a $150,000 CD account earn over the next year?
Summary
Putting $150,000 into a 1-year certificate of deposit (CD) can earn about 4.2% to 4.3% interest over the next year. This means savers could make between $6,300 and $6,450 in interest while keeping their original money safe.Key Facts
- A 1-year CD offers fixed interest rates currently between 4.20% and 4.30%.
- Depositing $150,000 at 4.20% would earn $6,300 after one year.
- At 4.25%, the same deposit would earn $6,375, and at 4.30%, $6,450.
- These rates have increased from about 4.10% earlier in May.
- There is a chance that the Federal Reserve will raise interest rates again in September, which might increase CD rates.
- Early withdrawal from a CD may cause penalties, making it important to plan to keep the money in until maturity.
- CDs provide a fixed rate of return, which can be safer compared to variable interest savings accounts or investments.
- Many online platforms allow easy comparison of CD rates and terms.
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