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with Inflation cools But still in the background and Interest rates are highThe savings can make a big difference.
There are plenty of ways to save; Some people can explore new Passive income stream Homeowners can lean on their investment through a medium Refinancing or a Home Equity Line of Credit (HELOC). Others may be looking to protect and grow the money they have saved through an opening High Yield Savings Account or Certificate of Deposit (CD) account
CDs are a particularly attractive option for account holders. These high-yield accounts can protect your existing savings and grow at a higher rate than regular savings accounts. Opening a CD has multiple benefits, especially in the current economic climate.
Check today’s CD interest rates now to see how much more you can earn!
Why should you open a CD now?
Here are three reasons why you should open a CD today.
You will earn more interest
Every dollar counts and a CD can help you earn more dollars than a traditional savings account. Savings account interest rates are currently around 0.40% nationally, according to the FDIC, but CD rates range from 4% to 5% or more, depending on the lender.
To put the difference in context, say you have a $5,000 deposit. A one-year CD with an interest rate of 4.5% will grow from $5,000 to $5,225 over 12 months while a savings account (at 0.40%) will grow that same deposit to just $5,020.
Start exploring your CD options here and start earning more interest now
You can depend on the rate
Unlike high yield savings accounts with Variable interest ratesWhile rates fluctuate based on the economy and Federal Reserve rate movements, rates for CDs are locked in so they remain stable and untouched. throughout the term. The rate your account earns when you sign up will be the rate at which your CD expires — giving your personal finances some much-needed predictability. This is particularly useful when estimates of future rate increases are unknown. Even if the rate drops over the next few months, your CD will still be locked into that initial high rate.
So even if rates on other products fall over the life of your CD, you can rest assured that your money will continue to earn interest at today’s high rate.
Your money is safe
Protecting your money is always smart but especially so in today’s market. It’s beneficial to have a way to protect your money – even from yourself.
CDs require you to lock in your deposit for an agreed tenure when you open the account. You will not be able to access your money throughout that period unless you are willing to incur a penalty fee for doing so (although there are some No-penalty CD you might want to explore). While this means it’s important to only keep money in CDs that you don’t need immediate access to, it can also be a great incentive to make sure you don’t spend cash elsewhere.
Compare some of today’s best CD options!
Bottom line
In today’s economic climate many Americans are looking for any edge they can get.
Certificate of Deposit Accounts can help you stay ahead with higher interest rates that you will maintain throughout the CD tenure despite any market fluctuations or economic changes. These accounts can also protect your otherwise spent funds if they are accessible in a regular savings account.
If you want to jumpstart your savings and be prepared, now is a great time to open a CD.
MoneyWatch: Managing Your Money
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