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Here are a few comparisons of how much you could earn by investing $10,000 in the S&P 500 index (assuming 10.7% CAGR) vs. the best CDs (with APYs shown for various CD terms). Time Horizon 1 year
But other investments will work better for other scenarios -- even with today's best CD rates of 5% or more. Here are three to consider. Here are three to consider. 1.
Again, your rate on an MMA isn't fixed the way a CD's rate is, but you're still likely to do the same or even a little better with one of these versus a savings account.
And this assumes a 10% annual return (which is slightly below the average return for the S&P 500 over the last 10 years), as well as zero additional contributions after that initial year of investing.
Keeping money in a CD is safe, but your returns are limited. Find out why investing in S&P 500 ETFs using your Roth IRA is a better way to build wealth.
What a Federal Reserve rate cut would mean for CD investing To combat high inflation, which peaked at an annual rate of 9.1 percent in June 2022, the Fed raised rates a whopping 5.25 percentage ...
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