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CBS News
a day ago
- Business
- CBS News
How much will a $10,000 3-year CD earn now?
The interest earnings with a $10,000 3-year CD will be significant if savers get started with an account now. Getty Images Three years is a long time, and in a financial sense, it can feel like a lifetime. In June 2022, for example, the inflation reading was at its highest point in decades, coming in at 9.1% as millions of Americans struggled with higher costs. Now, in June 2025, it's barely over 2% and closing in on the goal the Federal Reserve set to support additional interest rate cuts. That's a plus for borrowers saddled with higher rates, but it's not welcome for savers who have been able to take advantage of the high-rate climate with big returns on select savings vehicles. A certificate of deposit (CD) account has been one of the better ways to do so. Rates on these accounts have been over 4% or higher in recent years, and the rates are fixed, meaning savers can precisely calculate the interest they stand to earn when the account matures. And while it may not seem advantageous to lock a portion of your money into one of these accounts for an extended period, as has been demonstrated over the last decade, a lot can change in a few years. And the high rates you can secure now may not be available if you wait much longer. That noted, if you're considering a large, five-figure deposit into a long-term CD, you should start by calculating the interest-earnings potential. Fortunately, this is simple to do with precision. So, for example, what could a $10,000 deposit into a 3-year CD earn savers if opened now? That's what we'll calculate below. See how much more interest you could be earning with a high-rate CD here now. How much will a $10,000 3-year CD earn now? According to Bankrate, 3-year CDs come with rates between 4% and 4.15% right now. While those may not be as high as the most competitive short-term CD rates, the extended interest-earning timeline easily beats out the slightly higher short-term returns. Here, then, is what a $10,000 3-year CD can earn if opened this June, assuming no early withdrawal penalties are issued in the next 36 months: $10,000 3-year CD at 4.00%: $1,248.64 for a total of $11,248.64 after 36 months $1,248.64 for a total of $11,248.64 after 36 months $10,000 3-year CD at 4.15%: $1,297.38 for a total of $11,297.38 after 36 months So, if you want to earn more than one thousand dollars worth of guaranteed interest on your money, a $10,000 3-year CD offers the simple way to do it. Just be sure that you can keep this much money frozen for that long as early withdrawal penalties on CD accounts of this length can be costly, potentially eliminating most or even all of the interest you've earned to the point of regaining access. But if you can adopt a "set it and forget it" approach, this account term in this amount could prove to be very favorable when you go to cash out in the summer of 2028. Earn more interest on your money with a top long-term CD here today. What about a $10,000 money market account instead? If you want to earn a decent interest rate on your $10,000 but don't want to forego access to your funds the way you would with a CD, a money market account may appear advantageous. This account type has rates as high as many CDs, it won't require you to lock your funds away, and, depending on the banking institution, the account may even have check-writing abilities, among other features. But the rate here is, unfortunately for savers, variable and subject to change as soon as this summer if interest rate cuts are issued. So the changes that are likely to occur over a three-year period — the same time you could consistently be earning 4.15% on your CD account — are likely to be stark and arguably don't justify using this as a place to keep your $10,000. Or you can take a risk and see how much longer rates remain elevated. It will depend on your financial circumstances, goals and, ultimately, your need to have direct access to your cash at all times. The bottom line A $10,000 3-year CD can earn savers a substantial return if opened now. And that can't be understated in the unique economic climate of recent years. Rates may rise during those 36 months and they may fall lower again, but the returns being offered here are concrete and reliable. If you can afford to do so, it makes sense to get started sooner than later, while these rates (and earnings) are still readily available to savers. Have more questions? Learn more about your current CD account options here.
CBS News
2 days ago
- Business
- CBS News
$10,000 short-term CD vs. $10,000 high-yield savings account: Which earns more interest now?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. A $10,000 deposit into a short-term CD or high-yield savings account could be beneficial for savers right now. Getty Images A certificate of deposit (CD) account has a higher interest rate than many alternatives, making it an attractive option for savers looking to earn more interest on their money. But it comes with a well-known caveat: Savers will need to leave their money untouched in the account for the full term to earn that interest. Withdraw it prematurely, and it will result in the account being hit with a costly early withdrawal penalty. But leaving the money in the account can be daunting when CD terms last more than a year. Short-term CDs, however, mature in under 12 months. And, contrary to previous economic periods, rates here are often higher than they are on long-term counterparts, making them a viable option for those savers who don't want to forego access to their funds long-term but still want to earn a high rate. This makes it a particularly smart place to park $10,000 or more right now. But with similarly high rates available with high-yield savings accounts – and the flexibility those accounts offer that CD accounts do not – it behooves savers to calculate the potential interest earnings for both to determine which makes more sense for their five-figure deposit now. Below, we'll do the math for both account types if opened now, at the end of June 2025. See how much more interest you could be earning with a high-rate CD here. $10,000 short-term CD vs. $10,000 high-yield savings account: Which earns more interest now? Short-term CDs are accounts with maturity dates under one year (think three months, six months or nine months). Rates change based on each term, while the top high-yield savings account rates are approximately the same right now. That said, high-yield savings account rates are variable and subject to change over time, especially over extended periods, meaning they're unlikely to be the same in nine months the same way a 9-month CD rate will be. Here's what the three short-term CDs would earn and what the high-yield savings account would earn during the same period, assuming the high-yield savings account rate remains constant: $10,000 3-month CD at 4.40%: $108.23 for a total of $10,108.23 $108.23 for a total of $10,108.23 $10,000 high-yield savings account at 4.30% after three months: $105.81 for a total of $10,105.81 $105.81 for a total of $10,105.81 Difference between the two accounts: The 3-month CD earns $3.23 more $10,000 6-month CD at 4.51%: $223.01 for a total of $10,223.01 $223.01 for a total of $10,223.01 $10,000 high-yield savings account at 4.30% after six months: $217.63 for a total of $10,217.63 $217.63 for a total of $10,217.63 Difference between the two accounts: The 6-month CD earns $5.38 more $10,000 9-month CD at 4.26%: $317.83 for a total of $10,317.83 $317.83 for a total of $10,317.83 $10,000 high-yield savings account at 4.30% after nine months: $328.22 for a total of $10,328.22 $328.22 for a total of $10,328.22 Difference between the two accounts: The high-yield savings account earns $10.39 more So, in two of the three above examples, the CD account earned more while the reverse was true with the 9-month CD. That noted, the interest earnings for either account are approximately the same. To better determine which is more appropriate for their circumstances, then, savers will need to look beyond the interest rate and evaluate the potential for rates to cool in the future. If they're confident that rates will continue to decline, then they may be better served by locking in a high rate with a CD instead, while still readily available. But if they think rates will remain relatively steady, a high-yield savings account may be favorable. And, if they're unsure, they may be truly best served by depositing $5,000 into each account type now to exploit the benefits of both. Explore your CD and high-yield savings account options here and get started. The bottom line In some scenarios, a short-term CD is clearly the better savings option while, in others, a high-yield savings account is. But with a $10,000 deposit into either right now, savers will realize approximately the same interest-earnings over time. In other words, if you're considering either, there's really no wrong option. Just make sure to keep little to no money in a traditional savings account now. With an average interest rate of 0.38% currently, you're essentially losing money by not making the switch to a CD or high-yield savings account instead.
Yahoo
3 days ago
- Business
- Yahoo
CD Maturing in a Low-Rate Market? Here's a Plan From a Financial Planner
The most recent consumer price index (CPI) data showed that prices increased 0.1% in May, bringing the annual inflation rate to 2.4%. While economists and experts track this data to predict whether the Fed will cut rates, investors are debating how to proceed in this environment. One popular investment during 2022 and 2023, when the Fed was raising rates, was a certificate of deposit (CD) because they provided a better return on your money. A CNET article shared advice on what to do when you find yourself with a CD that's set to mature in a low-rate market. If the Fed starts cutting rates, then CDs will likely offer lower rates and may become less appealing. Read Next: Check Out: 'When a CD matures in a falling-rate market, it can be tough to know what to do next,' said Taylor Kovar, CFP, founder of 11 Financial. Kovar spoke with GOBankingRates to help you decide on the best approach of what to do with a maturing CD amid falling interest rates. Kovar stressed that your financial goals should drive your entire decision when it comes to determining what to do with a CD that will mature soon. 'If this money is part of your emergency fund or something you'll need soon, then keeping it accessible matters way more than squeezing out a little extra interest. However, if you're not planning to use it for a while, it's worth storing it somewhere that works better for you,' he said. Financial experts believe that every dollar needs a job, and your goals help you figure out what that job is. For example, if you plan to make an offer on a home in the near future, it's advisable to have access to your funds, as you may need to use them. However, if you're still building up your savings, you may want a simple investment strategy as you focus on advancing your career. Find Out: If you decide to have an auto-renew set for your CD or if you simply want to let the funds roll over into a new CD, it's essential to note that the rate won't remain the same. 'Locking in a new one at a lower rate doesn't feel great, but letting the money sit idle isn't ideal either,' Kovar said. Kovar recommended that you don't auto-renew without looking around first, since the environment has changed since you locked into the CD a few years ago. 'Some short-term CDs are still offering decent rates, and if you're not planning to touch the money anytime soon, that could work,' he said. On the contrary, if the new rate feels too low and you don't want your funds locked in, you'll want to explore better options. 'One option is to break up the amount and build a short CD ladder,' Kovar explained. 'You're able to keep some flexibility while still earning interest.' By setting up a CD ladder, you invest your funds in multiple CDs with different terms. Multiple CDs with varying dates of maturity will provide flexibility while allowing you to optimize the best interest rates. This option could help earn more without risking your funds in the stock market or other investments that have been volatile in 2025. Kovar noted that before making any changes, it's worth shopping around for better investment options, as online banks and credit unions typically offer more competitive rates than your current bank. Your best options for a better investment include a high-yield savings account, a money market account or even a short-term Treasury. You'll want to explore various options to ensure you find the best investment for your situation based on your financial goals. For example, a high-yield savings account could offer a higher APY while providing you with the ability to withdraw your funds at any time without a penalty. You may decide that it's time to start investing in index funds or real estate. Either way, it's crucial that you take the time to seek professional financial advice so that you make a well-informed decision. If you earned a decent return on your funds, you can withdraw the money and use it to cover a significant expense when the CD matures. You may find that your investment paid off, and it's time for the funds to be put to use in another way. You could use the money to pay off debt or to cover the costs of your upcoming wedding. Whatever you decide on, it's important to remember that you can always use this money as you see fit. More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on CD Maturing in a Low-Rate Market? Here's a Plan From a Financial Planner Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBS News
4 days ago
- Business
- CBS News
$10,000 1-year CD vs. $10,000 high-yield savings account: Which will earn more interest?
Both 1-year CD and high-yield savings accounts offer savers unique benefits right now. Getty Images You never want to put your money into an account that won't earn interest. And in the economic climate of recent years, you really couldn't afford to. With inflation at a decades-high, interest rates at their highest point in years and the cost of everyday expenses elevated, your money needed to work for you as much as possible. Fortunately, for those who took advantage, both certificates of deposit (CDs) and high-yield savings accounts offered effective pathways to do this, with both savings vehicles offering interest rates over 4% and sometimes even higher. But the economy is evolving again. Inflation is down multiple points from where it was in June 2022, for example, and interest rate cuts were issued in 2024 and could be issued again later this year. This means that savers will need to be a bit more strategic in their approach and it may mean reevaluating where they keep large, five-figure amounts of money right now. With a CD, they may be able to lock in long-term protection with a 1-year term, but with a high-yield savings account, they can earn a high rate and maintain access to their funds. To better determine which option is more beneficial for a $10,000 deposit made now, it can be helpful to calculate the interest-earning opportunity for both. Below, we'll complete the calculations. See how much more money you could be earning with a high-rate CD here. $10,000 1-year CD vs. $10,000 high-yield savings account: Which will earn more interest? Calculating the interest on either account type is relatively straightforward. You'll need the deposit amount (in this case, $10,000), the interest rate (4.45% for 1-year CDs and 4.30% for high-yield savings accounts) and the length of the account (both 12 months). That said, CD interest rates are fixed and high-yield savings account rates are variable, so predicting the latter interest earnings is difficult to do with precision as the rate can and likely will change over time. That said, here's what each could earn now, assuming the high-yield savings account rate remains constant: $10,000 1-year CD at 4.45%: $445.00 for a total of $10,445.00 $445.00 for a total of $10,445.00 $10,000 high-yield savings account at 4.30% after one year: $430.00 for a total of $10,430.00 Not only will you earn around $15 more with a 1-year CD in this example, but those earnings will be guaranteed versus the high-yield savings account, which won't be thanks to the variable rate. And while that could change positively (if rates are hiked and high-yield savings account rates rise alongside it), that appears unlikely now. With the CME Group's FedWatch tool listing a rate cut at more than a 75% likelihood for September, which will lead to a reduction in savings rates, perhaps before that point, many savers would benefit from depositing their $10,000 into a CD account instead. Get started with a 1-year CD here. What about money market accounts? A money market account could be a viable alternative for those looking to deposit $10,000 or more right now. Interest rates on these accounts are high and comparable to the top high-yield savings accounts. Plus, money market accounts won't require you to forego access to your money like a CD would, and they come with other features, like check-writing. But the big caveat remains the same: These accounts also have variable interest rates, which are also subject to decline later this year, making them a risk for savers looking to exploit today's high-rate climate for an extended period. The bottom line A $10,000 1-year CD earns more interest than a $10,000 high-yield savings account if opened now and that interest will be guaranteed, unlike a high-yield savings account with a variable rate. That said, you'll only be able to earn that $445 if you keep your money in the account for the full CD term. Take it out early and you'll get hit with an early withdrawal penalty, so keep that in mind when comparing these two accounts.
Otago Daily Times
19-06-2025
- Sport
- Otago Daily Times
Foxcroft heading back to CD
Dean Foxcroft has been careful not to burn any bridges with Otago. But he has cut ties with the Volts and signed with Central Districts. The decision was simple in the end. He believes his cricket will be better served in Napier than in Dunedin. "Obviously, the key thing is around having the guys around me that can make me a better player," Foxcroft told the Otago Daily Times . "I feel that can happen at Otago also, and it can happen at CD as well where I've got the likes of Tom Bruce and Will Young and all those experienced guys around me. "I'm pretty sure I can fit in with the CD team." Otago helped develop and support Foxcroft, and his decision to move on should not be seen as a negative reflection on the association, he said. The uncertainty around the Volts' coaching situation and the raft of recent departures did not play a part in his decision-making process. "No, no, it didn't. It's nothing to do with Otago or the change of coach or anything like that. "I just thought, personally, I'm keen on the move and to go and play where I started my cricket in New Zealand." Volts coach Ashley Noffke confirmed his departure earlier this month. He left with a year to run on his contract to pursue international opportunities. Noffke had replaced Dion Ebrahim, who also left a year into his two-year extension. Volts assistant Ben McCord left quietly towards the end of last season and has not spoken publicly about his departure. Leading Otago batter Dale Phillips is understood to be returning to Auckland, and former Canterbury batter Leo Carter is rumoured to be leaving Otago after just a year. It is a lot of change but there appears to be some help arriving. Central Districts opener Jack Boyle is understood to be transferring south to Otago, and Wellington middle-order batter Troy Johnson is another name linked with a move to the Volts. Foxcroft, a former South African under-19 representative, moved to New Zealand in 2018-19 to pursue an elite cricket career, and his first stop was with Central Districts. But he threw his kit bag in with Otago the following season and set himself the goal of qualifying for the Black Caps. He made an immediate impact for the Volts, performing strongly in the limited-overs formats. That season was cut short due to Covid. The star all-rounder returned to the republic to visit family and was unable to return when New Zealand closed its borders. Otago campaigned on his behalf to secure an exemption so he could return and take up his playing contract in 2021-22. They kept up the fight the following season but were unsuccessful and were unable to contract him for the 2022-23 season. When the border restrictions were lifted, Foxcroft made a triumphant return. The right-hander was impressive during the Super Smash, clobbering 424 runs at an average of 47.11. His deeds did not go unnoticed further up the chain. He was crowned domestic player of the year at the New Zealand Cricket Awards and earned a maiden call-up for the Black Caps. He made his debut for the Black Caps in a T20 against the UAE in Dubai in August 2023.
