Should I open a CD now?

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

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With inflation still hurts the wallets of millions of Americans, especially when visiting the supermarket, it may be a good idea to start exploring other options to save money and earn more interest. For some owners, it may 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 a high yield or a certificate of deposit (CD).

CDs offer unique advantages for those interested. This particular account, provided by both credit unions and banks, will pay account holders interest on the amount they deposit for a specified period only. This interest is usually higher than the 0.33% that many would get with a regular savings account, although you must keep the money stored on the CD for the entire agreed term.

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

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Should I open a CD now?

There are several advantages to opening a CD, even with the current state of inflation and market unpredictability. Here are three reasons why you should open a CD now.

Higher interest rates

Compared to regular savings accounts, you can earn significantly more interest by parking your money on a CD. As mentioned, the APR of a savings account currently hovers around 0.33%. A CD, meanwhile, could be 4% to 5% or more over the same period.

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

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Protect your money

It’s always good to have some money in a regular savings account to use in case of bad weather. But it also doesn’t hurt to put some on a CD so you know it’ll be there in the future. It can be tempting to dip into a savings account when needed (and often, when not essential). A CD won’t give you such easy access, forcing you to save and earn interest on any money you might have withdrawn to spend elsewhere. Think of a CD as a forced way to protect your money. If you’re worried about spending too much of your hard-earned savings on higher costs – and think you can afford to spend less – then open a CD now and start protecting your money.

Minimal costs and maintenance

If you like the idea of ​​earning more interest on your money but don’t want to deal with expensive fees and maintenance hassles, then a CD is worth cracking open. Traditional savings and check accounts normally come with pesky fees that could eat away at the money you’ve saved (and the interest you earn on those savings). But with a deposit account certificate, you can set it and forget it, giving you security and peace of mind knowing that your money won’t be reduced by fees and other penalties each month.

The bottom line

CDs are a safe way to protect your money and earn more interest. Rates are now significantly higher than those offered on regular savings accounts. CDs can also protect your money by locking it in for a set period of time, eliminating the temptation to overspend. And it can grow without the burden of maintenance fees and penalties that may have been applied to a traditional savings account.

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

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