Why should you open a CD now?

with Inflation Still lingering and the prospect of relief unclear, many Americans are looking for ways to save as much money as possible. 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 who want to protect their existing savings and grow it at a higher rate than they would get if they kept it in a regular savings account. Opening a CD has multiple benefits, especially in the current economic climate.

You can easily check today’s CD interest rates here to see if it makes sense for you, or use the table below to explore some local options.

Why should you open a CD now?

Here are three reasons you should open a CD now.

You can earn more interest

Every dollar counts and with a CD you can earn more dollars than you would if you kept your money in a regular savings account. Interest rates on savings accounts currently hover around 0.33% but CD rates range from 4% to 5% or even more depending on the lender you use, so be sure to shop around to secure the highest rate possible.

Consider what happens with a $5,000 deposit to emphasize how much more you can do with a CD versus a savings account. A CD with a 4.5% interest rate would grow $5,000 to $5,225 over 12 months while a savings account (at 0.33%) would grow that same deposit by just $16.50.

So start exploring your CD options here and start earning more interest now or use the table below to see your local options.

You can depend on the rate

Unlike some other accounts whose interest rates fluctuate based on the economy and the activity of the Federal Reserve, CD rates remain fixed and untouched. The rate you sign up with will be the rate at which your CD expires — giving you some much-needed predictability in your personal finances. So even if rates on other products fall during the term of your CD, you can be sure that your money will continue to earn interest at the prime rate.

You can protect your money

If you have trouble saving or are used to a stream of deposits and withdrawals with little change to the bottom line, a certificate of deposit account can help. By keeping your money in a CD (you won’t be able to withdraw it during your term) you can protect your money from early withdrawals. Combined with higher interest rates, you can both save – and make more money – simply by transferring your funds from an account to a CD. A time when Grocery store prices are painful And interest rate Increasingly, it’s beneficial to have a way to protect your money.

You can now easily open a CD here!

Bottom line

In the current economic climate many Americans are looking for any edge they can get. Certificate of Deposit Account can help in several ways. They offer higher interest rates than other traditional accounts, and that interest rate will remain unchanged for the entire CD term — despite any market fluctuations. These accounts can also protect your otherwise spent funds if they are accessible in a regular savings account. For all these reasons and more, now is a great time to open a CD.