$90,000 CD vs. $90,000 high-yield savings account vs. $90,000 money market account: Here's which will earn more in one year
Summary
This article compares how much interest you could earn in one year by putting $90,000 into three types of accounts: a certificate of deposit (CD), a high-yield savings account, and a money market account. It shows that CDs usually pay the most interest and guarantee the rate, while high-yield savings and money market accounts have slightly lower rates but allow more flexibility.Key Facts
- Traditional savings accounts have very low interest rates, around 0.38%, which is less than inflation.
- A CD has a fixed interest rate that stays the same until the account matures.
- High-yield savings and money market accounts have variable rates that can change with the market.
- For $90,000 over 6 months, a CD at 4.10% pays about $1,826 in interest; a high-yield savings at 4.03% pays $1,796; a money market at 3.90% pays $1,738.
- For 9 months, the high-yield savings account pays slightly more interest ($2,707) than the CD ($2,687) and money market ($2,620).
- For 1 year, the CD at 4.11% pays the most interest, about $3,699.
- Money market accounts let savers write checks, offering more access to funds than CDs or high-yield savings.
- The best choice depends on whether a saver values guaranteed interest or account flexibility.
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