Investing in a cd with bond yields still elevated after

With bond yields still elevated after the Fed’s last rate hold, investing in a CD can secure fixed returns, outperforming cash savings while avoiding current equity market turbulence driven by inconsistent Q1 earnings reports. Sure, this account type will require a bit more patience but the earnings will be higher than the 1-year CD type outlined above and it'll be earned with a deposit almost three times smaller. By depositing $8,200 into a 3-year CD with a rate of 3.95% now, savers will see their account grow by $1,010.59 after 36 months. That's more than $330 earned annually simply by keeping this money in this account until maturity. An early withdrawal of principal before maturity will cost an early withdrawal penalty. The penalty is calculated using the interest rate applicable to the CD at the time of early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, then a reduction of principal would be required in order to pay the penalty: Regional bank earnings beat forecasts, pushing shares up 3%, yet market correction risk persists. Diversifying via investing in a CD offers capital preservation amid potential sector valuation reversals.