Here's how much interest a $100,000 18-month CD can earn savers now
Summary
Opening a $100,000 certificate of deposit (CD) for 18 months now can earn savers about $6,300 to $6,600 in interest by the time the CD matures. These fixed returns are higher than typical savings accounts, but early withdrawal penalties mean savers should choose carefully.Key Facts
- A CD is a bank account where money is locked in for a set time in exchange for fixed interest.
- Current top interest rates for an 18-month $100,000 CD range from 4.20% to 4.35%.
- At these rates, interest earned after 18 months would be about $6,366 to $6,595.
- CDs offer guaranteed returns unlike some other savings options with variable rates.
- Early withdrawal from CDs often results in penalties that can reduce earnings.
- Traditional savings accounts offer much lower returns, around 0.38% interest now.
- Alternatives like high-yield savings or money market accounts may offer similar returns without CD restrictions.
- Savers should compare options and consider dividing money among different accounts for best results.
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