How much interest can a $150,000 CD account earn over the next year?

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August 31, 2026 / 10:32 AM EDT / CBS News

If you currently have access to $150,000, maintaining the ability to add and withdraw from it is understandably important right now. With inflation still elevated, the potential for an interest rate hike from the Federal Reserve substantial for when the bank meets again in September and concerns over unemployment growing (not to mention credit card balances rising), sacrificing access to your funds may feel unwise right now. But what if that loss of access and flexibility was brief and temporary? And what if the reward for limiting accessibility was an interest rate of around 4% now?

These are the questions savers contemplating the use of a certificate of deposit (CD) account are contending with right now. By transferring $150,000 into a 1-year CD, for example, savers will be able to protect their principal from market conditions while earning a fixed rate of return for the next 12 months. That's something that variable-rate savings account alternatives can't offer and it's something that investing can't, either. Still, with an early withdrawal penalty…

Original source: https://www.cbsnews.com/moneywatch/