How to make hundreds of dollars with a CD now
Those hoping for some relief from inflation were left disappointed this week after the latest report from the Bureau of Labor Statistics showed inflation increasing in February. Now at 3.2%, the inflation rate rose slightly from January and it remains more than a full percentage point above the Federal Reserve's target 2% goal. That means interest rates — already at their highest point in 23 years — are unlikely to drop in the short term. While that remains a negative for borrowers, it extends the window of opportunity for savers.
By opening a high-yield savings or certificate of deposit (CD) account (or both) in the last two years, savers earned exponentially more than they would have if they left their funds untouched in a regular account. CD accounts, in particular, offer savers a simple and safe way to make hundreds and possibly thousands of dollars each year. Below, we'll detail how savers can earn hundreds of dollars with a CD right now.
Start by exploring your CD account options online here.
How to make hundreds of dollars with a CD now
CD interest rates are high right now, with many in the 5% to 6% range, but with others as high as 7% for select savers. To make hundreds of dollars with a CD, then, savers will need to open an account with a high rate and keep their money in the account for the full term, or length, of the CD.
If they don't, not only will they not make the desired amount, but they'll also get stuck with an early withdrawal penalty that could be worth all of the interest earned to date. That noted, here are some of the ways you can make hundreds of dollars with a CD in today's rate environment.
Deposit $5,000 into a 1-year CD
There are multiple CDs with interest rates in the 5% range available today. If you deposit $5,000 into a 1-year CD with an APY of 5.40%, you'll earn $270 once the CD has matured, for a total of $5,270.
Deposit $10,000 into a 6-month CD
It's not difficult to find a 6-month CD with an interest rate approaching 6%. If you deposit $10,000 into a 6-month CD with an interest rate of 5.75%, you'll make $283.48 once that CD term has been completed, for a total of $10,283.48.
Get started with a 6-month CD here now.
Deposit $2,000 into a 3-year CD
While long-term CDs will require more discipline on behalf of the saver, the returns could be worth it. By depositing $2,000 into a 3-year CD with a rate of 5%, you'll make $315.25 when it matures, for a total of $2,315.25.
Deposit $1,000 into a 5-year CD
A 5-year CD term is one of the lengthier ones, but the end result could be worth it, especially when considering the initial deposit amount. By just depositing $1,000 into a 5-year CD with an APY of 4.60%, savers will earn $252.16 for a total of $1,252.16 when the CD matures.
Learn more about your CD options here today.
The bottom line
While the above CD rates and terms can net savers hundreds of dollars, they're not the only path to CD success. Depending on the rate, term and amount deposited, savers can potentially earn thousands of dollars on their money in today's rate climate. And considering that the average rate for a regular savings account is just 0.46% right now, you may be losing money by not making the switch. So don't hesitate to get started with a CD — there are multiple ways to earn hundreds of dollars right now.
