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.
![](https://assets2.cbsnewsstatic.com/hub/i/r/2023/10/25/c8419c54-8d3c-4d02-b9e8-9f93d992aecc/thumbnail/1200x630/866a006277126c192d8ce25bb3f29eb3/gettyimages-1445810162-1.jpg?v=287f03e8b6c956e3847aad6c604a17dd)