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Why you should open a 1-year CD this June
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If you had opened a certificate of deposit (CD) account in 2020 or 2021, the returns you would have received on your deposit would have barely existed. Rates on CDs with terms ranging from six months to five years were around 1% or less at that time, making them a poor substitute to grow and protect your money. But as the economy evolved and inflation increased, the federal funds rate did as well, causing the rates on CDs to rise exponentially.
But as recent history demonstrates, it’s critical to get the timing of your CD account opening right. If you don’t, you could wind up locking away your funds for very little benefit. To that point, there’s a compelling case to be made for opening a 1-year CD this June. Below, we’ll break down three reasons why this could make sense for you now.
See how much you could earn with a top 1-year CD online today.
Why you should open a 1-year CD this June
While a 1-year CD will require you to leave your money untouched for a bit longer than you may prefer (or risk paying an early withdrawal penalty), it may be worth opening this June. Here’s why:
You’ll gain long-term protection in a volatile climate
Amid geopolitical uncertainty overseas and a contentious presidential election season in the U.S., the economy and broader rate climate are particularly unpredictable right now. Combined with cooled but stubborn inflation and interest rates at their highest point in decades, now is arguably the time to be conservative with your money by protecting it as best you can.
A 1-year CD can help. You’ll lock in your CD with a high rate right now and that rate will remain the same through next June, at which point you can better gauge the status of the economy and wider rate climate.
Get started with a 1-year CD here now.
You’ll potentially earn hundreds (and even thousands) of dollars
With CD rates for 1-year terms around 5% right now, you stand to earn hundreds or even thousands of dollars by opening an account with the right deposit right now. If you deposit $5,000 into a 1-year CD with a rate of 5.40% today, you’ll earn $270 by June 2025.
And, if you felt comfortable depositing a larger amount, a $20,000 deposit at the same rate would earn you just over $1,000 in 12 months ($1,080 for a total of $21,080 upon maturity). Compared to the minimal 0.45% average being offered on regular accounts today, the advantages of opening a 1-year CD right now become even clearer.
You’ll add predictability to your finances
In an unpredictable economy, predictability is particularly valuable. And that’s exactly what you’ll get with a CD. Look to other account types for confirmation. Not only do traditional savings accounts have low rates, but those rates are variable and subject to change as the rate climate evolves. High-yield savings accounts, at the same time, have rates almost as high as the best CDs, but those rates are also variable and will rise or fall based on the Fed’s actions (or lack thereof).
But CDs are predictable – you’ll know exactly what to expect when the CD matures. That will allow for better budgeting and an easier path toward meeting your financial goals, both of which are hard to come by with other financial products right now.
The bottom line
June 2024 is not June 2020 or June 2021. No matter which CD term you choose or the amount you deposit, these accounts are generally favorable for savers right now. That said, it can be particularly advantageous to open a 1-year CD this June. By doing so you’ll gain long-term protection in an unpredictable climate, you’ll have the ability to earn hundreds or even thousands of dollars in interest and you’ll tack on some predictability to your finances. Just make sure that you deposit an amount that you’re comfortable parting with for the next 12 months or you could risk having to pay a substantial early withdrawal penalty to regain access.
Have more questions? Learn more about your CD options here.
At least 11 employees were taken to hospitals and residents were urged to shelter in place on Tuesday after an explosion at a Louisville, Kentucky, business.
The Louisville Metro Emergency Services reported on social media a “hazardous materials incident” at 1901 Payne St., in Louisville. The address belongs to a facility operated by Givaudan Sense Colour, a manufacturer of food colorings for soft drinks and other products, according to officials and online records.
Louisville Mayor Craig Greenberg said emergency teams responded to the blast around 3 p.m. News outlets reported that neighbors heard what sounded like an explosion coming from the business. Overhead news video footage showed an industrial building with a large hole in its roof.
WLKY-TV
“The cause at this point of the explosion is unknown,” Greenberg said in a news conference. No one died in the explosion, he added.
Greenberg said officials spoke to employees inside the plant. “They have initially conveyed that everything was normal activity when the explosion occurred,” he said.
The Louisville Fire Department said in a post on the social platform X that multiple agencies were responding to a “large-scale incident.”
The Louisville Metro Emergency Services first urged people within a mile of the business to shelter in place, but that order was lifted in the afternoon. An evacuation order for the two surrounding blocks around the site of the explosion was still in place Tuesday afternoon.
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A rare square 37-carat emerald owned by the Aga Khan fetched nearly $9 million at auction in Geneva on Tuesday, making it the world’s most expensive green stone.
Sold by Christie’s, the Cartier diamond and emerald brooch, which can also be worn as a pendant, dethrones a piece of jewelry made by the fashion house Bulgari, which Richard Burton gave as a wedding gift to fellow actor Elizabeth Taylor, as the most precious emerald.
In 1960, Prince Sadruddin Aga Khan commissioned Cartier to set the emerald in a brooch with 20 marquise-cut diamonds for British socialite Nina Dyer, to whom he was briefly married.
Dyer then auctioned off the emerald to raise money for animals in 1969.
FABRICE COFFRINI/AFP via Getty Images
By chance that was Christie’s very first such sale in Switzerland on the shores of Lake Geneva, with the emerald finding its way back to the 110th edition this year.
It was bought by jeweler Van Cleef & Arpels before passing a few years later into the hands of Harry Winston, nicknamed the “King of Diamonds.”
“Emeralds are hot right now, and this one ticks all the boxes,” said Christie’s EMEA Head of Jewellery Max Fawcett. “…We might see an emerald of this quality come up for sale once every five or six years.”
Also set with diamonds, the previous record-holder fetched $6.5 million at an auction of part of Hollywood legend Elizabeth Taylor’s renowned jewelry collection in New York.
