TL;DR
Get smart everyday buys delivered free — and shop member deals
- Fast, free delivery on millions of items
- Access to Prime Big Deal Days deals on October 6–7
- Prime Video, Amazon Music and more included
Kiplinger reports that Credit One Bank offered an 18-month jumbo CD at 4.50% APY, which would earn $6,825.38 on a $100,000 deposit over the term. That figure depends on the stated rate and account terms; early withdrawal penalties, taxes and rate changes on other products can affect a saver’s decision.
Kiplinger reported that a $100,000 deposit in an 18-month Credit One Bank jumbo CD at a stated 4.50% APY would earn an estimated $6,825.38 over the term. The example gives savers a concrete estimate, but the rate and account terms should be checked with the bank before opening an account, and withdrawing early may reduce the return.
The calculation in Kiplinger’s report is tied to a specific product offer: an 18-month term, a 4.50% annual percentage yield and a minimum deposit of $100,000. Kiplinger says the account had no monthly account fees and estimates that the deposit would generate $6,825.38 in interest over 18 months. That is a reported projection, not a guarantee that the offer remains available or that every saver will receive the same result under different account terms.
A jumbo CD generally requires a large opening balance. The source report frames it as one option for people holding significant cash who want a fixed return rather than exposure to market swings. But the fixed rate cuts both ways: it locks in the stated APY for the term, while a saver generally cannot benefit from higher CD rates if rates rise before maturity.
The report also warns that early withdrawals can trigger penalties, which may reduce interest earned and, depending on the account terms, could affect principal. It says CD interest is generally treated as ordinary taxable income. The tax timing and treatment depend on the account and individual circumstances, so readers should verify details with the institution or a qualified tax professional.
The Return Comes With a Lock-In
For someone with $100,000 in cash, the projected $6,825.38 in interest is substantial enough to make the term and withdrawal rules consequential. A CD can make a known return easier to plan around than an investment whose value changes with markets, but it also limits access to the money. That trade-off matters if the cash may be needed for a home project, medical cost or other expense before the 18 months are up.
The rate lock also creates reinvestment risk. If market rates rise during the term, a saver remains at the contracted APY until maturity, assuming the account terms are followed. If rates fall, a fixed-rate CD may compare favorably with new offers. The source report discusses the possibility of future Federal Reserve rate moves, but that outlook is not a confirmed forecast and does not establish what CD rates will do.
Taxes can change the amount a depositor keeps. CPA Dat Ngo, of Vetted Prop Firms, told Kiplinger that savers may owe tax on interest in the year it is earned, even if the CD has not matured. The actual after-tax return depends on a depositor’s tax circumstances; the reported $6,825.38 is a before-tax estimate.
As an affiliate, we earn on qualifying purchases.
How the CD Example Is Framed
Kiplinger’s report presents the 18-month offer as an example for savers weighing a fixed return against keeping funds accessible or waiting for potentially different rates. It suggests that a shorter-term CD, such as a six-month option, could let a saver revisit rates sooner. That approach could also result in a lower rate at renewal; neither outcome is assured.
The article says jumbo CDs are available across different terms and highlights their use for shorter-term savings goals or for people nearing or in retirement who want to set aside part of their assets in a product with a stated return. It also notes that qualifying deposits at FDIC-insured banks are generally insured up to $250,000 per depositor, per insured bank, per ownership category. Coverage rules depend on how accounts are held, so depositors with multiple accounts should check their coverage rather than assume every balance is separately insured.
The quoted offer is a snapshot from the source report, not a live rate survey. CD rates and eligibility requirements can change, and the source material does not provide a confirmed publication date or current confirmation from Credit One Bank. Readers should check the bank’s current disclosures for the APY, minimum balance, compounding, renewal rules and early withdrawal penalty.
“CreditOne Bank offers an 18-month CD with a 4.50% APY and no monthly account fees.”
— Kiplinger, describing its rate review
Rate Availability and Penalties
The source material does not confirm whether the 4.50% APY offer remains available, when it was last checked, or whether its terms have changed. It also does not specify the exact early withdrawal penalty, how interest is credited, or whether the stated earnings estimate assumes a particular compounding schedule. Those details can affect the final amount.
The Federal Reserve discussion in the report is an outlook, not confirmation of a future rate decision. It is also unclear whether a six-month CD or another alternative currently offers a better fit or yield. The report does not provide a side-by-side comparison of current products, and readers should not treat the projected return as a promise or a personalized recommendation.
Verify Terms Before Depositing
Before placing funds, a saver would need to confirm the bank’s current APY and disclosures, including the minimum deposit, interest calculation, maturity instructions and early withdrawal penalty. Those checks are particularly relevant for a deposit of this size, where an early exit could materially reduce the expected earnings.
Readers comparing a fixed 18-month term with a shorter CD can weigh when they may need the money against the possibility that rates will be different at renewal. They can also confirm deposit-insurance coverage across accounts and ask a tax professional how interest reporting applies to their situation. No later rate update or Federal Reserve decision is established in the source material.
Key Questions
How much would $100,000 earn in the reported jumbo CD?
Kiplinger estimates $6,825.38 over 18 months at the reported 4.50% APY. The amount is a source-reported projection, not a current bank quote or an after-tax figure.
Is the 4.50% APY still available?
The supplied report does not confirm current availability. Check Credit One Bank’s current rate and account disclosures before applying.
Can I withdraw the money before the CD matures?
The report says jumbo CDs carry early withdrawal penalties, but it does not give the specific penalty for this account. Review the account terms; an early withdrawal may reduce the interest earned.
Are CD earnings taxable?
The report says CD interest is generally taxed as ordinary income and cites CPA Dat Ngo on possible tax due in the year interest is earned, even before maturity. Individual tax treatment can vary, so consult a qualified tax professional.
Does FDIC insurance cover a $100,000 deposit?
The source describes general FDIC coverage of up to $250,000 per depositor, per insured bank, per ownership category. Coverage depends on account ownership and other deposits at the same bank; verify your specific situation.
Source: rss
Halloween Picks
halloween
As an affiliate, we earn on qualifying purchases.
