$5,000 CD vs. $5,000 high-yield savings vs. $5,000 money market account: Which earns the most interest in 2026?
Summary
This article compares how much interest you can earn in 2026 by putting $5,000 into three types of accounts: certificates of deposit (CDs), high-yield savings accounts, and money market accounts. It explains that CDs offer fixed interest rates, while the other two accounts have rates that can change with the market. The article shows which account pays the most interest over different time periods.Key Facts
- Traditional savings accounts have very low interest rates (around 0.39%) that do not keep up with inflation.
- High-yield savings accounts currently offer rates over 4%, about 900% higher than traditional accounts.
- CDs have fixed interest rates that stay the same for the term, while high-yield savings and money market accounts have variable rates.
- A $5,000 deposit in a 3-month CD at 3.90% would earn about $48 in interest.
- The same amount in a high-yield savings account at 4.03% would earn about $50 over 3 months.
- Over 6 months, a 6-month CD at 4.10% earns about $101, slightly more than savings or money market accounts.
- Over 9 months, a 9-month CD at 4.05% pays the highest interest, about $151.
- Money market accounts offer additional features like check-writing, making them flexible for banking.
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