$15,000 CD vs. $15,000 high-yield savings account vs. $15,000 money market account: Here's which is most profitable now
Summary
A $15,000 deposit in a traditional savings account earns very little interest, about $57 yearly, due to low rates. Higher returns can be earned by putting money into a certificate of deposit (CD), a high-yield savings account, or a money market account, with CDs generally offering the most consistent profit over different time periods.Key Facts
- Traditional savings accounts pay around 0.38% interest, earning about $57 per year on $15,000.
- High-yield savings and money market accounts have variable rates, which can change with the market.
- CDs have fixed interest rates that stay the same until the end of the term.
- A 3-month CD at 3.90% pays about $144 in interest; a high-yield savings account at 4.03% pays about $149.
- A 6-month CD at 4.10% pays about $304, more than a high-yield savings account or money market account.
- A 9-month CD at 4.05% pays about $453, slightly more than a high-yield savings account.
- CDs are usually more profitable but require keeping the money locked in; early withdrawal can lead to penalties.
- Interest rates are expected to stay steady for now, making it a good time to consider these higher-yield accounts.
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