Potential earnings from a $100,000 18-month CD at current rates
A $100,000 deposit in an 18-month certificate of deposit can generate roughly $6,300 to $6,600 in interest if held to maturity.
Banks are presently listing 18-month certificates of deposit with annual percentages between 4.20% and 4.35%. For a $100,000 principal, the interest earned at the low end would be $6,365.69, and at the high end $6,595.45, assuming the account remains untouched until it matures. The guaranteed nature of CD returns contrasts with the variable yields of high-yield savings and money-market products.
However, withdrawing funds before the 18-month term incurs penalties that can erode earnings. Potential investors are advised to compare these CD rates with alternative options and consider splitting funds across different account types to balance liquidity and return.
Why it matters
Understanding CD returns helps savers decide if locking funds for 18 months offers a better guaranteed yield than other low-risk accounts.
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