$150,000 CD vs. $150,000 high-yield savings vs. $150,000 money market account: Which option earns more now?
Summary
The article compares how much money a $150,000 deposit would earn in three types of accounts: certificates of deposit (CDs), high-yield savings accounts, and money market accounts. It shows that high-yield savings pay more in the short term, but CDs earn more interest over six to nine months, while money market accounts pay the least.Key Facts
- The Federal Reserve has kept interest rates steady, keeping deposit account rates attractive.
- A 3-month CD at 3.9% would earn about $1,442 in interest on $150,000.
- A high-yield savings account at 4.03% would earn about $1,489 in interest over 3 months.
- After 6 months, a CD at 4.1% earns $3,044, more than savings ($2,993) or money market ($2,897).
- After 9 months, a CD at 4.05% earns $4,534, slightly more than a high-yield savings account.
- Money market accounts have the lowest interest rates and earn the least interest.
- High-yield savings accounts have variable rates that can change, while CDs have fixed rates.
- Choosing the best account depends on how long you want to keep your money locked in.
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