Maximizing Your Savings: Comparing CD and High-Yield Savings Account Returns
TL;DR
Choosing a one-year certificate of deposit (CD) can be a smart choice as it offers competitive rates and flexibility. The interest earned on a $100,000 investment in a one-year CD can vary depending on the type of CD chosen. CDs that pay competitive rates can earn around $5,300 in interest, while CDs that pay the national average earn around $1,590. CDs from big brick-and-mortar banks offer minimal interest, earning only around $30. Shopping around for the best rates, especially at online banks, can make a significant difference in the total value of the CD. It is important to consider the safety of CDs, as they are typically insured by the FDIC or NCUA.
Topics:businesspersonal-finance#apy#cd#certificate-of-deposit#interest-rates#personal-finance#savings
- Here's How Much $100,000 In A CD Could Earn You In 1 Year Bankrate.com
- Where to Find Today's Best CD Rates (Hint: It's Not a Bank) Investopedia
- 3 things to do before the next Fed rate hike CBS News
- Pros and cons of using a CD for your savings USA TODAY
- Here’s How Much $100,000 In A High-Yield Savings Account Could Earn You In A Year Bankrate.com
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