A $20,000 investment in either a CD or money market account could yield a substantial return by the end of 2026. For those looking to grow their savings, both options seem like viable choices. However, to determine which one will generate more interest, let's take a closer look at the calculations.
Assuming constant interest rates throughout the year, here's how much each option can earn with a $20,000 deposit:
A 3-month CD at 3.90% would net around $192.21 in interest. In contrast, a money market account with a rate of 4.10% after three months would yield approximately $201.92.
Meanwhile, if we fast-forward to six months, both the CD and money market account will earn an identical amount of interest – $405.88.
Fast forward nine months, though, and the picture changes slightly. The CD's interest rate drops to 4.00%, resulting in a net gain of around $597.05. Meanwhile, the money market account continues to generate interest at 4.10%, netting approximately $611.90 – a difference of $14.85.
Finally, for those with a one-year horizon, both options will earn the same amount of interest, approximately $820.00.
Based on these calculations, it appears that a money market account stands to be marginally more profitable than a CD at the start of 2026. However, if you're looking for guaranteed interest and are willing to keep your funds locked in the CD until its maturity date, this may be the better option.
It's essential to remember that interest rates can fluctuate over time, so it's crucial to carefully consider both options before making a decision. With rates currently sitting above 3%, savers can potentially outpace today's inflation rate of 2.7% by choosing alternative savings accounts like CDs or money market accounts.
In summary, while both options have their merits, a CD may be the better choice for those seeking guaranteed interest on their five-figure deposit, but a money market account could still offer slightly higher returns if you're willing to keep your funds liquid throughout the year.
Assuming constant interest rates throughout the year, here's how much each option can earn with a $20,000 deposit:
A 3-month CD at 3.90% would net around $192.21 in interest. In contrast, a money market account with a rate of 4.10% after three months would yield approximately $201.92.
Meanwhile, if we fast-forward to six months, both the CD and money market account will earn an identical amount of interest – $405.88.
Fast forward nine months, though, and the picture changes slightly. The CD's interest rate drops to 4.00%, resulting in a net gain of around $597.05. Meanwhile, the money market account continues to generate interest at 4.10%, netting approximately $611.90 – a difference of $14.85.
Finally, for those with a one-year horizon, both options will earn the same amount of interest, approximately $820.00.
Based on these calculations, it appears that a money market account stands to be marginally more profitable than a CD at the start of 2026. However, if you're looking for guaranteed interest and are willing to keep your funds locked in the CD until its maturity date, this may be the better option.
It's essential to remember that interest rates can fluctuate over time, so it's crucial to carefully consider both options before making a decision. With rates currently sitting above 3%, savers can potentially outpace today's inflation rate of 2.7% by choosing alternative savings accounts like CDs or money market accounts.
In summary, while both options have their merits, a CD may be the better choice for those seeking guaranteed interest on their five-figure deposit, but a money market account could still offer slightly higher returns if you're willing to keep your funds liquid throughout the year.
. But for me, I've always been more interested in those smaller returns with lower risk, especially if I'm planning to keep my cash locked away for the long term 
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. And let's be real, who doesn't want to make their money work for them? It's all about finding the right balance between risk and reward in my book 
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! With those rates, it's no wonder people are looking for ways to grow their savings 
especially with that 4.10% rate after three months 
. It might be worth considering locking your cash in a CD too though, if you want guaranteed interest 
and doing your research before making a decision 
#CDvsMoneyMarket #SavingsGoals #InterestRates
that's not bad, but let's be real, who has time to keep their money locked away in a cd? 
i'd rather put it in a money market and get my cash back when i need it 
like isnt it still march?? 
anyway back to this cd vs money market thingy... i personally think its kinda pointless cuz both r just gonna earn interest anyway 
Like I'm gonna put all my savings into a CD just to guarantee some extra interest that's only slightly better than what a money market account is giving me. 
And don't even get me started on inflation... like, isn't the point of having savings accounts to, you know, beat inflation or something? 
. Still, if you're dead set on saving up, at least know the pros and cons beforehand 
. Can't wait to see how things shake out in 2026! 
, but is it really worth stressing about which one will make you more $$? Maybe just pick what feels right to you 
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gotta make sure you're cool with locking up your $$$ for a year tho