3 Reasons to Open a $20,000 CD This July for Predictable Returns

Opening a certificate of deposit (CD) account for your $20,000 savings can be a smart move in July 2025, particularly with the current economic uncertainty. Here are three reasons why it could be worth considering:

Firstly, locking in a high interest rate now will protect your money from potential rate cuts later this year or next. While there’s no expectation of significant rate cuts in July, many experts predict cuts as early as September, which would lower returns on CDs. By acting now, you can secure a rate between 4% and 5% for your $20,000, leading to predictable returns.

Secondly, a CD will earn you significant interest. For example, depositing $20,000 into a 6-month CD with a rate of 4.49% would yield around $444 in just six months. Longer-term CDs, such as an 18-month account at 4.26%, can result in even more substantial earnings over the year and a half period.

Lastly, a CD provides you with time to consider your next move without sacrificing interest-earning opportunities. The current economic landscape is uncertain, making it challenging to predict when rates will change or by how much. A CD allows you to take a step back, assess the situation, and explore alternative options while your money grows in the fixed-rate account.

By opening a $20,000 CD this July, you can make the most of the current interest rate environment and take advantage of predictable returns. Just be sure to shop around online to find an account with the highest rate and best terms to maximize your earnings.

Source: https://www.cbsnews.com/news/why-20000-cd-is-worth-opening-july-2025