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