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How much interest would a $2,500 CD earn in 1 year?
If you’ve been looking for an effective way to protect and grow your money in recent years, there have been few options available.
Thanks to inflation and an elevated interest rate environment, Americans have had to shop around to find ways to grow their money effectively. Two such ways have been with traditional savings vehicles, namely high-yield savings and certificates of deposit (CD) accounts. Both come with high interest rates right now and both ensure that the principle amount of money deposited will remain untouched, regardless of any broader economic conditions.
CDs, especially, offer unique benefits right now, thanks to a locked interest rate and higher-than-usual interest rates.
Those considering this account now, however, could benefit from acting promptly, with interest rate cuts looming. Even a small deposit of $2,500 into a CD would be better than keeping it in a regular savings account with an average rate under 1% right now. To better determine why a $2,500 deposit in a CD makes sense, however, it helps to first know what you stand to make. Below, we’ll calculate that for you, timed to the popular short-term, 1-year CD account.
See how much more money you could be earning with a CD here now.
How much would a $2,500 CD earn in 1 year?
The amount of money you will earn on a 1-year CD is determined by a series of factors. This includes the deposit made, the interest rate the lender offers and the term, or length of the CD. It can also be affected by early withdrawal penalties, if you decide to take back your money before the maturity date. Below, we calculated the interest you could earn with a $2,500 deposit using some available 1-year CD rates (early withdrawal penalties were not accounted for). Here’s what to expect:
- 5.10%: With a $2,500 deposit at this rate you’d earn $127.50 upon CD maturity, growing your funds to a total of $2,627.50.
- 5.15%: With a $2,500 deposit at this rate you’d earn $128.75 upon CD maturity, growing your funds to a total of $2,628.75.
- 5.20%: With a $2,500 deposit at this rate you’d earn $130.00 upon CD maturity, growing your funds to a total of $2,630.00
Start earning more on your money with a top, 1-year CD here now.
Don’t forget about taxes
CD account interest can be substantial, boosting your savings in a predictable and safe manner. But the interest you earn on these accounts isn’t exempt from taxes. It will be reported as income earned on your return, so you’ll need to account for that when filing for the tax year you had your CD.
Even if your CD has yet to mature, you’ll still need to report the interest earned during the year it was active. While there are creative ways to help mitigate this — from opening an HSA CD to a 529 CD or more — savers should still go into the process knowing that any money earned won’t be immune from the typical tax ramifications they’re used to.
The bottom line
A $2,500 deposit into a 1-year CD could earn you upwards of $120 and, thanks to the limited deposit, won’t necessarily hamper you from making other deposits in other accounts (or other investments, in general). But interest rates are evolving and today’s rates won’t remain this high forever, underlining the importance of these CDs now. So strongly consider making your deposit now while you can still lock in a 1-year CD rate over 5%.
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NYC priest who allowed Sabrina Carpenter to shoot a music video in church stripped of duties
NEW YORK – There’s more fallout for a Brooklyn pastor who allowed pop star Sabrina Carpenter to film a music video inside his church.
Monsignor Jamie Gigantiello has been stripped of his duties at the Annunciation of the Blessed Virgin Mary Church in Williamsburg.
Church officials said they were appalled he permitted Carpenter to film the provocative video last year for her hit song “Feather.”
The Diocese says an investigation revealed instances of mismanagement, including unauthorized financial transfers to a former aide in the Adams administration, which is now the subject of a corruption probe.
“Evidence of serious violations”
“I am saddened to share that investigations conducted by Alvarez & Marsal and Sullivan & Cromwell LLP have uncovered evidence of serious violations of Diocesan policies and protocols at Our Lady of Mount Carmel – Annunciation Parish,” Bishop Robert Brennan said. “In order to safeguard the public trust, and to protect church funds, I have appointed Bishop Witold Mroziewski as administrator of the Parish.”
Brennan, who oversees Catholic churches in the New York City boroughs of Brooklyn and Queens, said he also relieved a deacon who had been appointed as a temporary administrator during the investigation. He said the deacon had used racist and other offensive language during private conversations in the parish office that had been secretly recorded at Gigantiello’s direction.
Gigantiello didn’t respond to email and Facebook messages seeking comment Monday.
The controversial video
Released on Oct. 31, 2023, the “Feather” music video revolves around men behaving badly toward Carpenter before meeting grisly deaths.
At points in the video, the former Disney Channel star is seen pulling up to the distinctive brick church in a pink hearse and then dancing in front of the church’s ornate altar wearing a short black dress and a black veil alongside a colorful array of faux coffins.
In a letter to parishioners last November, Gigantiello said approving the filming was a “lapse in judgment” and maintained he wasn’t present at the time and didn’t realize how provocative the shoot would be.
On Monday, Brennan said a broader review uncovered other instances of administrative impropriety.
Among them is an ongoing investigation into Gigantiello’s use of a church credit card for “substantial” personal expenses, he said.
From 2019 to 2021, the monsignor also transferred $1.9 million in parish funds to bank accounts affiliated with Frank Carone, Adams’ former chief of staff, Brennan said.
The bishop said Gigantiello failed to seek prior approval for the transactions and didn’t properly document them, in violation of the diocese’s investment policies and protocols.
Carone’s law firm repaid $1 million of the funds, along with about 9% interest, according to Brennan. Gigantiello also requested early repayment for the remainder, but without the substantial interest called for under the loan notes, the bishop said.
Federal investigators have subpoenaed the Brooklyn church seeking information about Carone and Gigantiello’s financial dealings, though neither has been accused of any wrongdoing.
Brennan stressed the diocese is “fully committed” to cooperating with law enforcement in its investigations.
Meanwhile, the commotion set off by her music video hasn’t been lost on Carpenter.
She made light of it during a concert at Madison Square Garden in late September, just days after Adams became the first New York City mayor indicted while in office.
“Damn, what now?” she said cheekily to the Manhattan crowd. “Should we talk about how I got the mayor indicted?”
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