Stock Market Outperforms 5% CD: A Detailed 2-Year Analysis

Saturday, 18 May 2024, 00:00

Discover how investing in the stock market yielded three times more money over the past two years compared to a 5% CD. Learn about the earnings potential, volatility, and key considerations when choosing between stocks and CDs.
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Stock Market Outperforms 5% CD: A Detailed 2-Year Analysis

Stock Market vs. 5% CD: How Much $5,000 Grew Over the Past 2 Years

The stock market has significantly outperformed CDs in recent years. Opening a certificate of deposit (CD) with a 5% APY may seem appealing, but investing in the stock market has proven to be more lucrative.

Comparison of Earnings

  • Two-year earnings from CD: $512.50
  • Two-year earnings from S&P 500: $1,662.93

In conclusion, investing in the stock market offers greater earning potential than CDs, backed by historical data and market performance.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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