$100,000 CD vs. $100,000 high-yield savings account: Which will earn more over the next year?
Summary
Putting $100,000 into a 1-year certificate of deposit (CD) will likely earn about $300 more in interest than putting the same amount into a high-yield savings account, based on current rates. However, CDs lock your money for a fixed time and charge a penalty if you withdraw early, while high-yield savings allow easier access but have variable rates that can change.Key Facts
- Inflation in July was 3.4%, higher than the Federal Reserve’s 2% target.
- Inflation affects interest rates, which have stayed mostly steady through 2026.
- A 1-year CD offers a fixed interest rate of about 4.40%.
- A high-yield savings account currently offers about a 4.10% interest rate, which can change over time.
- A $100,000 deposit in a CD will earn approximately $4,400 in one year.
- A $100,000 deposit in a high-yield savings account will earn about $4,100 if the rate stays constant.
- CDs typically require locking in money and have penalties for early withdrawal.
- High-yield savings accounts allow easier access to funds but have variable interest rates.
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