Here's how much interest a $12,000 short-term CD account can earn now
Have $12,000 to transfer into a short-term CD account now? Here's how much interest you can earn if you do.
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A report earlier this month showing inflation declining in June was a step in the right direction for millions of Americans, but it also underlined the work that still lies ahead. With the inflation rate still more than a full percentage point above the Federal Reserve's target 2% goal and interest rates remaining elevated largely because of that, many savers find themselves reevaluating their strategies. And that could lead to a transfer of funds out of a traditional savings account – which comes with a minimal average interest rate of just 0.38% now – and a move into a better, higher-rate alternative.
A certificate of deposit (CD) account is one worth serious consideration now, especially if there's a large, five-figure amount such as $12,000 at play. And with a short-term account, in particular, savers won't be required to forgo access to their money for an extended period of time as these accounts mature in 12 months or less. In the interim, however, they'll protect their principal and grow their interest with a rate around 4%. Still, withdrawing money prematurely here will mean having to pay an early withdrawal fee.
In turn, it's critical that savers know what they'll earn for this short-term accessibility sacrifice. How much interest will a $12,000 short-term CD account earn now, then? That's what we'll calculate below.
Start earning more interest on your money with a CD account here.
CD accounts have fixed interest rates that will remain the same through the account's maturity date, making interest-earning projections simple to complete with accuracy. Assuming no early withdrawal fees or penalties are issued against the account, then, here's how much interest a $12,000 short-term CD account can earn now, calculated using the top rates for four different terms:
Savers stand to earn more than $100 with a CD account of this size in just three months or slightly over $500 if they maintain it through a July 2027 maturity date. Not only will interest here be guaranteed and reliable, however, but with the principal being locked away, it will also be protected against any withdrawals that you may have otherwise made with an account that didn't restrict access.
Just be sure to shop around online, however, as different lenders will offer different rates and terms. By taking the time to review your options, you can boost your chances of finding an account with the best rate and no or minimal fees.
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