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If you have $15,000 in a safe or a traditional savings account, you may be looking for a more effective way to grow your savings dollars. After all, traditional savings accounts currently only offer 0.45% average annual returns and your safe doesn’t produce any return.
But, a certificate of deposit (CD) may help you passively grow your savings dollars. In fact, you could earn over 5% annually on your savings with someleading CDs. But, percentages may be hard to quantify in terms of dollars and cents. So, how much interest could you earn if you deposit $15,000 into a 6-month CD right now?
Compare leading 6-month CDs now.
How much interest would a $15,000 6-month CD earn now?
Popular Direct, TAB Bank and America First Credit Union all offer high returns on 6-month CDs now. These CDs offer 5.30%, 5.27% and 5.25% returns, respectively. Here’s how much interest you would earn from each of these accounts if you were start with a $15,000 opening deposit:
Popular Direct (5.30%): $392.37 (for a total of $15,392.37 after six months).TAB Bank (5.27%): $390.18 (for a total of $15,390.18 after six months).America First Credit Union (5.25%): $388.71 (for a total of $15,388.71 after six months).
Open a CD to earn more on your savings today.
Is a 6-month CD right for you?
It’s clear that it’s possible to earn a meaningful return by depositing $15,000 into a 6-month CD. But, is doing so the right choice for you? Here are a couple of factors to consider when making that decision:
Your capital needs
It’s important to keep in mind that when you open a CD, you’ll need to keep your money in the account through its entire term. If not, you may pay a penalty for accessing your savings early.
“While determining capital needs in the near term, those opening a CD can look into whether or not locking up funds for six months makes sense,” says Alex Blackwood, CEO and co-founder of the investing platform, Mogul Club.
If you’ll need the $15,000 you plan on opening a 6-month CD with during the term, this may not be the option for you. But, if you can let the money sit and earn interest for you, a CD could make sense.
Your risk tolerance
Your risk tolerance should also play a role in your decision to open a 6-month CD. “If you do not have a high risk tolerance, a CD is backed by the federal government and is an easy way to receive a return with very little risk,” says Blackwood.
CDs are a strong choice for risk-averse investors and savers because they’re typically insured by the FDIC or NCUA for up to $250,000. So, if you deposit $15,000 into one and something happens to the financial institution that makes it impossible for it to pay back your money, you’ll get your money back through the insurance on the account.
As such, if you’re not comfortable taking much risk with your money, a 6-month CD makes sense. On the other hand, if you have a hefty appetite for risk and are willing to trade potential losses for a potentially larger return, other options (like stock investments) may be better for you.
Don’t miss out on today’s high returns. Open a 6-month CD now.
The bottom line
If you deposit $15,000 into a leading 6-month CD account, you could earn anywhere from $388.71 to $392.37 on your savings in half a year. This is particularly a strong choice if you don’t expect to need the money you deposit in the next six months and you don’t have a hefty appetite for risk. Compare today’s leading 6-month CDs now.
Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids and two dogs.
