A CD offers a significantly higher interest rate than a traditional savings account.

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with Inflation Still millions of Americans lose their wallets, especially when they visit Supermarket, may mean starting to explore other options to save money and earn more interest For some homeowners, it could be a refinance or a Home Equity Line of Credit (HELOC). For many others, it may be a simple transfer from a regular savings account to one High yield one or Certificate of Deposit (CD).

CDs offer unique benefits for those interested. This special account offered by both the credit union and the bank will only pay interest on the amount deposited by the account holders for a specified period of time. This interest is usually higher than the 0.33% that many people get with a regular savings account, although you must keep the savings in the CD for the entire agreed term.

So should you open a CD now or look elsewhere? Find out if a CD is worth it by checking the interest rates available now, or use the table below to explore your local options.

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Should you open a CD now?

Opening a CD has multiple advantages, even with current inflation and market unpredictability. Here are three reasons you should open a CD now.

High interest rates

You can earn significantly more interest by parking your money in a CD than in a regular savings account. As mentioned, the APR for a savings account currently hovers around 0.33%. A CD, meanwhile, can be 4% to 5% or more over the same period.

What does that hard number look like? If you put $5,000 into a savings account, you’ll earn $16.50 after 12 months. But if you put the same amount in a CD, you’d earn $225 (with a 4.5% interest rate). You can start earning more money by opening a CD here. You can use the table below to review your options.

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Protects your money

It’s always good to keep money in a regular savings account to use for a rainy day. But it also doesn’t hurt to put something on a CD so you know it’ll be around in the future. It can be tempting to tap into a savings account when needed (and often, when not important). A CD won’t allow you such easy access, forcing you to save and earn interest you might otherwise withdraw to spend elsewhere. Think of a CD as a compelling way to protect your money. If you’re worried that you’re spending too much of your hard-earned savings due to high expenses – and think you could spend less – then open a CD now and start saving your money.

Minimum fees and maintenance

A CD is worth opening if you like the idea of ​​earning more interest on your money but don’t want to deal with expensive fees and maintenance worries. Traditional savings and Account checking There are usually annoying fees that can eat into your savings (and the interest you earn on those savings). But with a certificate of deposit account, you can set it and forget it, giving you security and peace of mind knowing your money won’t be depleted by fees and other penalties each month.

Bottom line

CDs are a safe way to protect your money and earn more in interest. The rate is now significantly higher than the rate offered on a regular savings account. CDs can also protect your money by locking it up for a period of time, thus eliminating the temptation to overspend. And it can grow without the fees and maintenance penalties that might apply to a traditional savings account.

If a CD sounds like a benefit to you, start exploring your options online now You can use the table below to find a CD that earns high interest.

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