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Here's how much interest a $100,000 18-month CD can earn savers now
CBS News • • business
Key Points:
- Investing $100,000 in an 18-month certificate of deposit (CD) can yield guaranteed returns between approximately $6,366 and $6,595, based on current top interest rates ranging from 4.20% to 4.35%.
- The fixed interest rates on CDs provide a secure return, which may be preferable amid high inflation and rising borrowing costs, especially compared to traditional savings accounts with much lower rates around 0.38%.
- Early withdrawal penalties on large, long-term CDs can be costly, so savers should be strategic and fully informed before committing funds to ensure they can maintain the account until maturity.
- While 18-month CDs offer competitive returns, alternative options such as high-yield savings or money market accounts may provide similar or more flexible benefits without the restrictions of CDs.
- Savers should consider diversifying their funds among different account types or terms to balance returns, liquidity, and risk before making a final decision on where to invest a large sum.
