Online Banks Offer CDs Earning Over $1,000 on $20,000 Deposits as Rates Rise

Depositing $20,000 into a 1-year CD now could earn over $1,000 at current high interest rates.

The highest rates are generally found at online banks without physical branches.

A 6% CD would earn $1,200 on a $20,000 deposit over 1 year.

CDs lock in an interest rate, so your rate won't drop if market rates decline.

CDs discourage spending by charging a penalty for early withdrawals before maturity.