economy
$2,500 CD vs. $2,500 high-yield savings account vs. $2,500 money market account: Which will earn more over the next year?
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TL;DR
- CDs, high-yield savings, and money market accounts earn more interest on $2,500 than traditional savings accounts.
- Interest earnings vary for each account type over different timeframes (6, 9, and 12 months).
- CD accounts offer locked-in rates, while high-yield savings and money market accounts have variable rates.
- Over a year, a $2,500 CD at 4.10% yields $102.50, a high-yield savings at 4.03% yields $100.75, and a money market at 3.90% yields $97.50.
- The most profitable account over six months and one year is typically the CD, while the high-yield savings account can be slightly more profitable at nine months.
- Money market accounts allow check-writing, offering additional banking convenience.