Maximizing Your Savings: Comparing CD and High-Yield Savings Account Returns

Choosing a one-year certificate of deposit (CD) can be a smart choice as it offers competitive rates and flexibility. The interest earned on a $100,000 investment in a one-year CD can vary depending on the type of CD chosen. CDs that pay competitive rates can earn around $5,300 in interest, while CDs that pay the national average earn around $1,590. CDs from big brick-and-mortar banks offer minimal interest, earning only around $30. Shopping around for the best rates, especially at online banks, can make a significant difference in the total value of the CD. It is important to consider the safety of CDs, as they are typically insured by the FDIC or NCUA.