$30,000 CD vs. $30,000 high-yield savings account vs. $30,000 money market account: Which will earn more interest?
Summary
This article compares how much interest you could earn by putting $30,000 into three types of bank accounts: certificates of deposit (CDs), high-yield savings accounts, and money market accounts. It shows that interest rates differ, with CDs generally offering the highest guaranteed returns, while high-yield savings accounts offer more flexibility.Key Facts
- CDs have fixed interest rates, while high-yield savings and money market rates can change over time.
- A $30,000 deposit in a 3-month CD at 3.90% would earn about $288 in interest.
- A $30,000 deposit in a 3-month high-yield savings account at 4.03% would earn about $298.
- A $30,000 deposit in a 3-month money market account at 3.90% would earn about $288.
- For a 9-month CD at 4.05%, the interest earned would be about $907.
- The CD typically earns the most interest for 6- and 9-month terms compared to the other accounts.
- Money market accounts usually pay the lowest interest but may offer benefits like check-writing.
- Savings accounts with higher interest rates (around 6-7%) have become more common recently due to rising overall interest rates.
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