$100,000 CD vs. $100,000 high-yield savings account vs. $100,000 money market account: Here's which will earn more interest now

Key Points:

• Investing $100,000 in the current economic climate requires careful consideration due to inflation, market volatility, and stagnant interest rates, making savings accounts an attractive option.
• Certificate of deposit (CD) accounts currently offer higher guaranteed interest rates (around 4.10%) compared to high-yield savings (4.03%) and money market accounts (3.90%), resulting in greater earnings over six months to one year.
• For example, a $100,000 deposit in a 1-year CD at 4.10% yields approximately $4,100 in interest, outperforming comparable high-yield savings and money market accounts.
• However, CDs lock in rates and impose penalties for early withdrawal, while high-yield savings and money market accounts have variable rates that may increase if interest rates rise.
• Savers should weigh the trade-offs between guaranteed returns and flexibility, possibly diversifying their $100,000 deposit across multiple account types to balance earnings and access.