How much interest will a $5,000 no-penalty CD earn now?
Wondering if a no-penalty CD is worth it in this rate landscape? Here's what a $5,000 deposit could earn today.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.
The past few years have been a particularly unusual stretch for savers. After spending years settling for negligible returns on traditional savings accounts , higher interest rates have made it possible to earn meaningful income on the cash that's sitting in savings without taking on market risk. While deposit rates have eased from their recent peaks, they're still high enough on many certificate of deposit (CD) accounts to reward those willing to lock in competitive returns.
Opening a CD account doesn't necessarily mean committing your money for years on end, though. While many people hesitate to open a traditional certificate of deposit because they worry they'll need access to their cash before the term ends, meaning they'll have to pay an early withdrawal penalty , there are ways around that fee. Withdrawing funds from a standard CD before it matures still means paying a penalty, but no-penalty CDs are also an option.
No-penalty CDs offer many of the benefits of a traditional CD account while giving account holders the ability to withdraw their funds without paying an early withdrawal penalty. If that sounds like a smart option to consider, here's how much a $5,000 deposit into a no-penalty CD could earn at today's rates.
Compare today's top CD accounts and lock in a top rate here .
How much interest will a $5,000 no-penalty CD earn now ?