In contrast, Series I bonds issued between November 2021 through April 2022 come with a rate of 7.12%. They (and Series I) require a minimum purchase of $25 with a maximum of $10,000 per calendar year.Īny Series EE issued between November 2021 through April 2022 comes at a paltry rate of 0.10%. Series EE bonds pay interest until you cash them or they reach maturity at 30 years. The latter are newer and come with both a fixed rate as well as a variable one to keep up with inflation. The former carries a fixed rate, and although they have an expiration date, they’re guaranteed to double in value over the course of 20 years. They come in two versions, Series EE and Series I. This option often works well for beginning investors since they’re a simple, low-cost and low-risk choice. So, when you buy one, the government guarantees to pay you back plus interest. Treasury bonds, or T-bonds, are similar to a loan, except you’re the lender and the government is the borrower. They also come with significant early withdrawal penalties.

While CDs offer the chance of higher returns than a savings account, they’re still a low rate of return and don’t keep up with inflation. So, if you made a $5 million deposit, it would generate approximately $1,500 of interest in a year. That also ensures more frequent compounding and a regular income stream.Īs of March 21, 2022, the national average rate for a 1-month CD is 0.03% but the average increases with the term. They plan out multiple CD purchases to benefit from when they hit maturity. Usually, a long-term CD pays a higher interest rate than one with a short term, but some create CD ladders as an alternative. The faster interest compounds, the more you earn. When comparison shopping for a CD, it’s important to pay attention to the APY (annual percentage yield) and its compounding schedule. They’re offered through banks or credit unions and advertised based on their yield, term and compounding frequency. Like savings accounts, certificates of deposit (CDs) are a low-risk place to stash your cash.

Daily interest on 5 million dollars