$2,500 CD vs. $2,500 high-yield savings account vs. $2,500 money market account: Which will earn more over the next year?
The article compares the interest earnings of a $2,500 deposit in a certificate of deposit (CD), high-yield savings account, and money market account. It highlights that while all three options can yield better returns than a traditional savings account, their interest rates and structures differ. Ultimately, the CD account tends to be more profitable in most scenarios, but savers should consider their individual needs regarding access to funds.
- ▪A $2,500 deposit in a 6-month CD at 4.10% earns $50.74 in interest.
- ▪High-yield savings accounts and money market accounts have variable interest rates that may change over time.
- ▪The CD account is more profitable in two of the three scenarios presented.
Opening excerpt (first ~120 words) tap to expand
MoneyWatch: Managing Your Money $2,500 CD vs. $2,500 high-yield savings account vs. $2,500 money market account: Which will earn more over the next year? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CBS News — Top.
Discussion
0 commentsMore from CBS News — Top
