There’s a lot to like about certificates of deposit.
(Don’t have that much to deposit?
We’ll look at some other amounts, too.)
Here’s how much you could earn if you deposit $10,000 into asix-month,one-year,three-yearandfive-year CD.
Earnings are based on APYs and assume interest is compounded annually.
Don’t have $10,000?
Earnings assume interest is compounded annually.
Some banks compound interest daily, while others compound interest monthly, quarterly or semi-annually.
The more often interest is compounded, the more money you’ll earn.
We recommend using this calculator from theUS Securities and Exchange Commission.
Watch out
One of the biggest trade-offs for most CDs is early withdrawal penalties.
These penalties can eat into your interest earnings.
If you’ll need to access your money sooner, a high-yield savings account may be a better fit.
Still growing your savings?
And that’s not counting the interest you’ll earn on top of your savings.
Growing a savings account takes time.
