A $10,000 CD would bump up to more than $12,460 half a decade later. Similarly, Bread Savings has a 60-month CD with a 4.75% APY. Using the example from above, a $10,000 deposit would result in a balance of $12,225 once it matures. Many financial institutions have already increased their CD rates much higher.Ĭapital One, for instance, has a 60-month CD offering 4.10% APY. Remember, these yields are just averages, and low ones at that. That same $10,000 would net nearly $700 now. After five years, you’d earn just a little more than $140 in interest. Say you opened a 60-month CD and deposited $10,000 in January 2022 that paid a 0.28% APY. For instance, a one-year CD yielded just 0.13% in January 2022, before the Fed started raising rates, while a 60-month CD offered only 0.28%.Ī rate increase of that size can make a big difference to your bottom line. While those rates aren’t exactly robust, they’re well above recent levels. The average yield on a one-year CD in September 2023 was 1.76%, according to the Federal Deposit Insurance Corporation (FDIC), while a 60-month CD was 1.38%.
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