How to use a CD to save for holiday expenses

Oct. 6, 2024 - CNBC

You can use the extra cash from the interest earned during your CD term to stretch your holiday spending power. Alternatively, you can open a 12-month CD now to save for next year's holiday season since the longer the CD term, the more interest you'll earn.

How much money you'll earn for parking your holiday fund in a CD depends on the amount you deposit, APY and term length. Bask Bank CDs Learn More Bask Bank is a division of Texas Capital Bank, a Member FDIC.

Steps to take before opening a CDBefore opening a CD for your holiday fund, you'll need to establish a clear savings target — research costs and review expenses from the previous holiday season to estimate your spending...