economy
How much interest can you earn on $40,000 now? Here are 4 options to consider.
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TL;DR
- Depositing $40,000 into a 3-month CD at 3.90% yields $385, a 1-year CD at 4.11% yields $1,644, and a 2-year CD at 4.16% yields $3,397.22.
- A high-yield savings account at 4.10% could earn $1,640 on $40,000 in one year, with rates subject to market conditions.
- A money market account at 3.90% could yield $385 in three months or $1,560 in a year, with variable rates and check-writing features.
- A traditional savings account at 0.38% would earn only $152 on $40,000 in 12 months.
- Savers can consider splitting funds among different accounts to maximize benefits.
- Traditional savings accounts are the least profitable option and should generally be avoided.