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"What's the interest-earning potential?" That's the question savers are always asking themselves before putting their money into a specific account type. And the answer, in recent years, was often "substantial." Thanks to the highest in decades and, thus, the highest in more than 20 years to combat it, savers were able to earn upwards of 5% on vehicles like and . The latter type, in particular, had upwards of for some specific savers, making them an obvious way to grow and protect your money.
But that was in 2023 and 2024. Towards the end of 2024, the Federal Reserve embarked on an that impacted the returns savers were accustomed to with CDs. And that drop in interest-earning potential is likely to continue later this year as additional cuts are issued.
That is, of course, unless savers act promptly to take advantage of today's still-elevated interest rate climate. One way to do so is with an , in particular. Before getting started, however, it's helpful to know the precise interest-earning potential of this CD term now, in early June 2025. Below, we'll do the math – and explain why this CD type is still worth opening now.
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To determine how much money you can earn with a CD you'll need three primary numbers: the interest rate, the (or length) of the CD account before hitting and the amount deposited. Using those figures, then, here's what savers could expect to earn with an 18-month CD if opened now, tied to a few different deposit amounts and readily available interest rates:
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As illustrated above, savers can earn or even with select 18-month CD accounts if opened now. And while that may be enough of a motivation to act promptly, it's not the only reason why an 18-month CD is worth opening now. Here are two others:
Extended protection against market uncertainty: No one knows where the interest rate climate is heading this summer, or in the months after, let alone six months to a year from now. But with an 18-month CD, that's less of a concern as savers will secure extended protection against thanks to the fixed interest rate that CD accounts come with. And, by the time the account matures, you'll hopefully have a better idea of where the market stands.
The alternatives are not as beneficial: High-yield savings accounts have comparable (but lower) than the top CD accounts do now. But , meaning that they'll decline alongside your interest earnings as the rate climate cools. have the same caveat, while traditional savings accounts have average rates . Compared to the 4%-plus that 18-month CDs come with, then, it becomes clear which is most advantageous for your money now.
With the potential to grow your money by hundreds (or even thousands) of dollars, the benefit of extended financial protection against market uncertainty and the unfortunate reality of low-rate alternatives, an 18-month CD could be the place to keep some of your money right now. Before getting started, however, be sure to calculate the exact amount you can comfortably part with for the full term to avoid having to pay any or fees to regain access to your funds.
