The Federal Reserve’s recent interest rate cuts have led many to believe that the rate climate is permanent, but inflation has slowed the likelihood of additional cuts in 2025. As a result, high-interest-earning accounts like certificates of deposit (CDs) and high-yield savings accounts remain attractive options for savers. Here are three CDs worth opening for 2025:
The 1-year CD at 4.52% offers an interest rate higher than many other CD terms with the added benefit of penalty-free early withdrawal. With a $10,000 deposit, you’d earn $452 upon account maturity, allowing you to weather economic uncertainties before making long-term plans.
The 18-month CD at 4.30% provides a slightly lower interest rate but extends financial protection for an additional six months. You’ll earn around $651.88 with a $10,000 deposit, but be cautious of potential early withdrawal penalties if funds are not maintained easily.
The 2-year CD at 4.25% offers the highest interest rate among these options, earning almost $870 with a $10,000 deposit. However, it requires a significant commitment of two years and should only be considered by serious savers who can manage to leave their money alone for that period.
While these CDs have appealing features, they may not be suitable for everyone. It’s essential to research and find the optimal CD account that fits your needs. With interest rates averaging under 1% just a few years ago, locking in high rates now is crucial, regardless of the term you ultimately decide on.
Source: https://www.cbsnews.com/news/cd-accounts-still-worth-opening-for-2025