How much can you make with today's top-earning CDs?
After nearly a year of signs that inflation was cooling off, it actually rose again in July and again in August, giving many experts pause. While the hope was that inflation would hit the Federal Reserve's target of 2%, the summer performance fell short. Against this backdrop, the benchmark interest rate hit a 22-year high in July and has remained there since (the Fed kept the rate untouched during their September meeting). And while higher interest rates mean greater borrowing costs, they also mean better returns on your savings accounts.
Interest rates on both high-yield savings and certificates of deposit accounts have increased exponentially in the last 18 months, making them an excellent choice for those looking to protect and grow their money. And compared to the minimal 0.45% that many are earning with a regular savings account, you're essentially losing money by not transferring all or most of your money into one of these account types.
But how much could you be making with today's top CDs? When you crunch the numbers, the case to deposit money into a CD becomes a compelling one. Start exploring the top CD interest rates available now to see how much more you could be earning.
How much can you make with today's top-earning CDs?
There are multiple CDs and savings accounts with interest rates more than 12 times the national average. Obviously, the more you deposit, the more you'll earn, so expect to see a sizable difference between a $1,000 deposit and a $5,000 deposit. And you'll make even more by depositing $10,000 into a CD. While, traditionally, long-term CDs have come with higher interest rates, due to the current market conditions, many short-term CDs (less than 12 months) have some of the best interest rates.
Here's how much you could make with a one-year CD, varying by deposits and some of the top rates available today.
$1,000 deposit
- At 6.00%: $60 (for a total of $1,060 total after one year)
- At 5.75%: $57.50 (for a total of $1,057.50 total after one year)
- At 5.50%: $55 (for a total of $1,055 total after one year)
Start earning more money with a top-earning CD here now.
$5,000 deposit
- At 6.00%: $300 (for a total of $5,300 after one year)
- At 5.75%: $287.50 (for a total of $5,287.50 after one year)
- At 5.50%: $275.00 (for a total of $5,275 after one year)
$10,000 deposit
- At 6.00%: $600 (for a total of $10,600 after one year)
- At 5.75%: $575 (for a total of $10,575 after one year)
- At 5.50%: $550 (for a total of $10,550 after one year)
Do your research first
While the above CD rates are available with multiple lenders and banks, they're probably not accessible with your regular bank at their brick-and-mortar location. Typically, the highest interest-earning accounts are offered by online banks. Because they don't have the overhead that those banks with physical locations do, they're often able to pass on those savings to account holders in the form of higher interest. But you'll need to do your research and shop around to find an online bank offering one of these rates.
The bottom line
With inflation still humming along in the background and interest rates meant to tame it still elevated, there aren't many great financial options to pursue now. But high-yield savings and CD accounts are two of the better alternatives. These account types have elevated interest rates, giving savers a rare opportunity to make hundreds of dollars extra on their money simply by moving their savings into one of these high-earning accounts. But you have to be in it to win it, and by leaving your money untouched in a regular account, chances are you're not even beating inflation. So consider making the switch today and open a top-earning CD account here now.
