How much interest can a $200,000 CD account earn now?
CBS News • • business
Key Points:
- With rising inflation and market volatility, many Americans are considering shifting large savings, such as $200,000, from stocks and bonds into safer, fixed-rate certificates of deposit (CDs).
- Current CD interest rates are around 4% or higher, offering guaranteed returns and principal protection over terms ranging from three months to two years.
- A $200,000 CD can earn approximately $1,922 in three months up to nearly $17,000 over two years, providing predictable income compared to the unpredictable stock market.
- CDs are FDIC-insured up to $250,000, ensuring safety for deposits of this size, though early withdrawal penalties can be substantial.
- While CDs may offer lower returns than stocks, they are a viable option for savers seeking to protect and grow retirement funds amid uncertain economic and geopolitical conditions.