economy
$60,000 CD vs. $60,000 high-yield savings account vs. $60,000 money market account: Which earns more interest now?
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TL;DR
- Savers with significant funds like $60,000 are seeking safe places to earn interest amidst rising costs and paused interest rates.
- High-yield savings accounts, money market accounts, and Certificates of Deposit (CDs) currently offer rates around 4% or higher.
- CDs offer fixed rates and generally higher interest earnings compared to variable-rate high-yield savings and money market accounts over short terms.
- For a $60,000 deposit, a 1-year CD at 4.10% could earn $2,460, while a high-yield savings account at 4.03% would earn $2,418, and a money market account at 3.90% would earn $2,340.
- CDs are the most profitable option if the goal is to maximize interest and avoid rate volatility, but they require locking up funds until maturity.
- High-yield savings and money market accounts offer more flexibility but may earn less interest, with potential to rise if rates increase.
- Splitting funds across different account types can help balance the advantages and disadvantages of each.