STRC vs Certificates of Deposit: Which Earns You More?
How does STRC's 11.5% yield compare to a 12-month CD at 4.1%? See the income difference at every level.
HYSA and CD rates as of Mar 13, 2026. Treasury yield and S&P 500 dividend yield update automatically. Sources
12-Mo CD (4.1%)
$170.83/mo
STRC (11.5%)
$479.17/mo
Difference
+$308.33/mo
What $50,000 earns you per month
+$308.33/month more with STRC
Monthly Income Comparison
| Investment | 12-Mo CD (4.1%) | STRC (11.5%) | Difference |
|---|---|---|---|
| $10,000.00 | $34.17/mo | $95.83/mo | +$61.67/mo |
| $25,000.00 | $85.42/mo | $239.58/mo | +$154.17/mo |
| $50,000.00 | $170.83/mo | $479.17/mo | +$308.33/mo |
| $100,000.00 | $341.67/mo | $958.33/mo | +$616.67/mo |
| $250,000.00 | $854.17/mo | $2,395.83/mo | +$1,541.67/mo |
Feature Comparison
| Feature | 12-Month CD | STRC |
|---|---|---|
| Current Yield | 4.1% | 11.5% |
| Payment Frequency | At maturity or monthly (varies) | Monthly |
| FDIC Insured | Yes (up to $250K) | No |
| Principal Protection | Yes (if held to maturity) | No |
| Early Withdrawal | Penalty applies | Sell anytime (market price) |
| Lock-up Period | 12 months | None |
| Minimum Investment | Varies ($500-$1,000+) | 1 share (~$100) |
| Tax Treatment | Ordinary income | May qualify as return of capital |
| Rate Type | Fixed for term | Variable (monthly) |
CD Pros
- FDIC insured up to $250,000
- Guaranteed return if held to maturity
- Fixed rate, no surprises
- Simple and familiar product
CD Cons
- Lower yield than STRC (4.1% vs 11.5%)
- Money is locked up for the full term
- Early withdrawal penalties
- Interest taxed as ordinary income
- Must reinvest at maturity, potentially at a lower rate
STRC Pros
- More than double the yield (11.5% vs 4.1%)
- No lock-up period, sell anytime
- Monthly cash dividends
- Potential for favorable tax treatment
- Low minimum investment (~$100 per share)
STRC Cons
- Not FDIC insured
- Share price can drop below what you paid
- Dividend rate can change monthly
- Tied to Strategy's financial health
- More complex than a CD
Understanding the risk tradeoff
A CD gives you a guaranteed rate in exchange for locking up your money. That sounds straightforward until rates move against you. If you commit to a 12-month CD at 4.1% and rates climb six months later, your money is stuck earning the old rate. Pulling it out early means paying a penalty that can wipe out months of interest. And when the CD matures, you may find that the best available rate is lower than what you had, leaving you with reinvestment risk on top of the time you already gave up.
STRC has no lock-up period, no maturity date, and no withdrawal penalties. You can sell shares during any market session. The rate adjusts monthly, so if market conditions change, your yield moves with them rather than staying frozen. The price you pay for that flexibility is the absence of FDIC insurance. Your principal can fluctuate, and the dividend is backed by Strategy's reserves rather than a federal guarantee.
The decision comes down to what matters more to you: the certainty of a locked rate with guaranteed principal, or the freedom to access your money at any time while earning a significantly higher yield. For a deeper look at STRC's structural buffers, see How Durable is STRC?
Who Is Each Best For?
Stick with CDs if...
- You want a guaranteed return with zero risk
- You are comfortable locking up your money for the term
- FDIC insurance is important to you
- You prefer the simplicity of a bank product
Consider STRC if...
- You want significantly higher monthly income
- You do not want your money locked up
- You understand and accept preferred stock risks
- You are looking beyond traditional bank products for yield