$60,000 CD vs. $60,000 high-yield savings account vs. $60,000 money market account: Which earns more interest now?
Summary
If you have $60,000 to save, you can choose between a certificate of deposit (CD), a high-yield savings account, or a money market account to earn interest. Right now, CDs offer the highest guaranteed interest rates compared to the other two options, but they require you to keep the money locked in for a set time.Key Facts
- A CD has a fixed interest rate, meaning the rate stays the same until the CD matures.
- High-yield savings and money market accounts have variable rates that can change over time.
- Current rates are approximately 4% or higher for CDs and high-yield savings accounts; money market accounts offer slightly lower rates around 3.9%.
- A 6-month CD at 4.10% can earn about $1,218 in interest on $60,000.
- A 1-year CD at 4.10% can earn about $2,460 in interest on $60,000.
- Savings and money market accounts offer easier access to your money but usually pay slightly less interest.
- The Federal Reserve has paused interest rate changes for the near future, making current rates more predictable.
- Splitting funds between these accounts can balance the benefits of flexibility and higher returns.
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