$12,000 CD vs. $12,000 high-yield savings vs. $12,000 money market account: Here's which will earn the most now
CBS News • • business
Key Points:
- Depositing funds into fixed-rate accounts like CDs can be challenging in today's economy due to inflation, paused Federal funds rate, and market volatility, but many savers still have amounts suitable for CDs, high-yield savings, or money market accounts.
- For a $12,000 deposit, a 3-month high-yield savings account currently offers the highest interest ($119.11), while 6- and 9-month CDs yield slightly more interest than savings and money market accounts.
- CDs provide fixed rates and predictable earnings, but they lack flexibility if interest rates rise, unlike variable-rate high-yield savings and money market accounts which can adjust with market conditions.
- If interest rates decline, variable-rate accounts will earn less, whereas CD returns remain steady, so savers should consider splitting funds among different account types to balance risk and reward.
- Savers are encouraged to compare current rates and account benefits carefully and explore multiple savings options to optimize returns amid economic uncertainty.
