$60,000 CD vs. $60,000 high-yield savings account vs. $60,000 money market account: Which earns more interest now?
CBS News • • business
Key Points:
- With $60,000 to invest, savers seeking to protect principal and earn higher interest should consider certificates of deposit (CDs), high-yield savings, and money market accounts, as traditional savings accounts offer minimal returns around 0.38%.
- Currently, CDs offer fixed interest rates around 4.10%, making them the most profitable option compared to high-yield savings (4.03%) and money market accounts (3.90%), with potential earnings up to $2,460 over one year on a $60,000 deposit.
- While CDs guarantee fixed returns and are less affected by rate fluctuations, they require locking in funds, whereas high-yield savings and money market accounts offer more flexibility but variable rates that could change.
- Savers should carefully weigh the trade-offs between profitability and liquidity and consider diversifying their $60,000 across multiple account types to balance benefits and risks effectively.
