Potential earnings from a $100,000 three-year CD at current rates

With stock market returns averaging around 10% over the past decade, a sizable cash balance such as $100,000 can be placed in a fixed-rate certificate of deposit to avoid market volatility. Three-year CDs this September are offering some of the strongest yields, with rates of 4.35%, 4.40% and 4.50% cited. Assuming no penalties, those rates translate to total interest of $13,625.91, $13,789.32 and $14,116.61 respectively at maturity.

The fixed return protects the principal, but withdrawing early would trigger a steep fee, so the account must remain locked for the full term. Potential investors are advised to shop around, particularly with online institutions that tend to provide more competitive rates.