$100,000 CD vs. $100,000 high-yield savings account vs. $100,000 money market account: Here's which will earn more interest now
Summary
This article compares how much interest a $100,000 deposit can earn in three types of accounts: certificates of deposit (CDs), high-yield savings accounts, and money market accounts. It explains that CDs offer a fixed interest rate and generally give the highest guaranteed return right now, while the other accounts have variable rates that can change over time.Key Facts
- A $100,000 investment can be placed in different accounts to earn interest safely.
- CDs have fixed interest rates that do not change until the account matures.
- High-yield savings and money market accounts have variable rates that can go up or down.
- Current top rates are about 4.10% for CDs, 4.03% for high-yield savings, and 3.90% for money market accounts.
- For six months, a CD at 4.10% earns about $2,029 in interest compared to $1,995 in savings and $1,931 in money market accounts.
- For one year, a CD at 4.10% earns about $4,100, more than the savings or money market accounts.
- CDs charge penalties if money is withdrawn before maturity, so savers should be confident they won’t need the funds early.
- Variable rate accounts might be better if interest rates increase in the future, since their rates can rise.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.