economy
$100,000 CD vs. $100,000 high-yield savings account: Which will earn more over the next year?
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TL;DR
- Inflation at 3.4% means interest rates are likely to remain high, making CDs and high-yield savings accounts a good option.
- A $100,000 CD at 4.40% interest is projected to earn $4,400 in one year.
- A $100,000 high-yield savings account at 4.10% interest is projected to earn $4,100 in one year.
- CDs offer a guaranteed return, while high-yield savings accounts have variable rates that can change with the market.
- If interest rates rise, a high-yield savings account could potentially earn more than a CD.
- Consider early withdrawal penalties for CDs and the benefits of splitting funds between both account types.