Here's how much interest a $100,000 2-year CD account will earn savers now
Want to lock $100,000 into a CD account for the next two years? Here's how much interest you can earn if you do.
The current economic situation, with inflation exceeding the Federal Reserve's 2% target and potential interest rate hikes, makes protecting a large sum of money, such as $100,000, more important than ever. A Certificate of Deposit (CD) account with a fixed, high interest rate could be a wise choice for such an account.
Interest rates for 2-year CDs currently range from 4.25% to 4.35%. Based on these rates, a $100,000 2-year CD could earn between $8,681 and $8,889 in interest upon maturity, assuming no penalties are incurred. Online banks often offer some of the most competitive rates, making it easy to find a suitable CD account.
In comparison, high-yield savings accounts offer a slightly lower, variable interest rate of 4.10%. While this rate is subject to change, a $100,000 deposit could grow to $108,368.10 over two years if this rate remains constant. However, such CDs lack the accessibility restrictions of CDs, making them a more flexible investment option.
In conclusion, a $100,000 2-year CD account is likely to provide the highest guaranteed interest return, making it a viable option for long-term saving. However, high-yield savings accounts also offer a reasonable alternative, particularly for those who value access to their funds.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
