economy
$100,000 CD vs. $100,000 high-yield savings account vs. $100,000 money market account: Here's which will earn more interest now
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TL;DR
- A $100,000 deposit into a savings account needs careful consideration due to the current economic climate.
- High-yield savings, CDs, and money market accounts can protect principal and offer rates of 4% or higher.
- CDs offer locked-in, predictable interest rates until maturity, while high-yield savings and money market accounts have variable rates.
- Interest calculations for a $100,000 deposit over 6, 9, and 12 months show CDs generally earning more than savings or money market accounts at current top rates.
- CDs are the most profitable in the short term but lack flexibility due to early withdrawal penalties.
- Variable-rate accounts (high-yield savings, money market) are preferable if interest rates are expected to rise.
- Splitting a $100,000 deposit among different account types can balance return potential with flexibility.