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How much interest can a $50,000 3-year CD account earn if opened now?
CBS News • • business
Key Points:
- A $50,000 balance in savings can be protected and grown effectively by investing in a 3-year certificate of deposit (CD), especially amid ongoing inflation and anticipated Federal Reserve interest rate hikes.
- CDs offer fixed interest rates, providing guaranteed returns unaffected by market fluctuations, with current top rates for 3-year terms around 4.50%, making them a competitive option.
- A $50,000 3-year CD opened now could earn between approximately $6,813 and $7,058 in interest by maturity, depending on the exact rate, with online banks typically offering higher rates than traditional banks.
- While the returns are attractive, savers must be prepared to keep the funds locked for the full 36 months, as early withdrawal penalties could negate earned interest.
- Savers are encouraged to research and compare CD rates online to maximize returns and ensure the chosen account aligns with their financial goals and ability to maintain the term.
