$70,000 CD vs. $70,000 high-yield savings account vs. $70,000 money market account: Which will earn more now?
Summary
This article compares how much interest you can earn by putting $70,000 into three types of bank accounts: certificates of deposit (CDs), high-yield savings accounts, and money market accounts. It shows which account pays the most interest over different time periods based on current top interest rates.Key Facts
- Traditional savings accounts pay very low interest rates (around 0.38%).
- CDs offer a fixed interest rate, which helps predict exact earnings.
- High-yield savings and money market accounts have variable rates, which can change over time.
- For a 3-month period, a high-yield savings account pays the most interest ($706.73).
- For 6 months, CDs and high-yield savings accounts tie with about $1,420.59 earned.
- For 9 months, high-yield savings accounts earn the most interest ($2,141.65).
- After 1 year, CDs earn the most interest ($2,877.00).
- Money market accounts earn the least interest across all time frames tested.
- The differences in earnings between these accounts are small, so other factors like account features should also be considered.
- Splitting money across different account types can help savers benefit from each account’s advantages.
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