economy

How much interest will a $50,000 1-year CD earn if opened this August?

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How much interest will a $50,000 1-year CD earn if opened this August?

TL;DR

  • Current top 1-year CD rates are between 4.17% and 4.40% APY.
  • A $50,000 deposit in a 1-year CD at 4.40% APY can earn $2,200 in interest.
  • Traditional savings accounts average about 0.38% APY, yielding only $190 on a $50,000 deposit over 12 months.
  • Locking in a CD rate now protects against potential future interest rate decreases.
  • High-yield savings accounts offer flexibility but have variable rates that may decrease if the Fed lowers borrowing costs.