Which investment yields a higher interest rate: a $10,000 Canadian dollar (CD) savings account or a $10,000 money market account, at present?

Which investment yields a higher interest rate: a $10,000 Canadian dollar (CD) savings account or a $10,000 money market account, at present?

Cashin' a pretty penny from a savings account might seem like the shizzle on a $100 investment, but let's face it, it's not. But what if we're talkin' 'bout some big bucks here? And what if we could snag a high-interest rate that'd stick around for months, even years? That's where certificates of deposit (CD) accounts come knockin'! Rates have been solid as a rock for savers, clocking in comfortably over 4%. And these rates? They're fixed, so you can nail down that interest-earning potential with precision.

On the flip side, that rate sticks around for a reason: you won't be able to touch your money during the term or you'll catch a fine. It might make some folks tick, but others will dig for other ways to boost their return without forfeiting access to their funds. And that's where money market accounts step in. They've got rates similar to CDs, but you ain't gotta share your stash. Some might even throw check-writin' features in the mix.

So you got two options: a CD or a money market account. Both high interest, but only one lets you hang onto your dough. And with overall rates still relatively high (not as high as '23 or '24, though), you might be wonderin' which could fetch ya more interest on a $10K deposit. Below's the breakdown, baby.

Check out how much more interest ya could be earnin' with a high-yield CD here.

$10,000 CD vs. $10,000 money market account: Which earns more interest now?

No universally correct answer exists for this one. Rates for CDs depend on the lender and the term. Money market accounts, though, have variable interest rates that'll shift over time. Current rates for money market accounts hover around 4.32%, while the top CD rates sit at around 4.49% for 6-month CDs, albeit a teensy bit lower for longer terms.

So the math? Yeah, it ain't gonna be exact, and that volatility? It's gotta be accounted for in your interest projections. For reference, check out what a $10K deposit into a CD account can bring home:

• $10,000 6-month CD at 4.49%: $222.04 for a total of $10,222.04
• $10,000 9-month CD at 4.31%: $321.54 for a total of $10,321.54
• $10,000 1-year CD at 4.40%: $440.00 for a total of $10,440.00
• $10,000 18-month CD at 4.16%: $630.45 for a total of $10,630.45

And for a money market account, assuming the rates hold steady:

• $10,000 6-month money market account at 4.32%: $213.72 for a total of $10,213.72
• $10,000 9-month money market account at 4.32%: $322.28 for a total of $10,322.28
• $10,000 1-year money market account at 4.32%: $432.00 for a total of $10,432.00
• $10,000 18-month money market account at 4.32%: $654.95 for a total of $10,654.95

When letin' the numbers speak for themselves, it's clear that interest earnings for both are similar. In some instances, you'll earn a smidge more with a CD, while in other cases, the money market account will bring in even more.

The difference? Rate structure's totally different: the CD rates'll remain the same in the months to come, while money market accounts will jiggle around. Savers'll need to weigh the guaranteed interest they can score with a CD, then, versus the teeny tad bit more they can possibly make with a money market account to determine which is the most profitable move.

Dive into a high-yield CD online today.

The wrap-up

Sometimes, a $10K CD will out-earn a money market, while other times, a money market account will. When straddlin' the fence, and the benefits are similar but not identical, savers might find that their smartest play is to delegate half their dough to each account type: $5K into a CD and $5K into a money market account. That'll let you collect high rates from both while protectin' your cash against rate reductions in the future.

Matt RichardsonMatt Richardson is the senior managing editor for the Managing Your Money section for ourNews.com, the real deal on matters related to personal finance, from savings to investments to insurance.

1. The news in personal-finance circles suggests that a high-yield CD could earn more interest on a $10K deposit compared to a money market account, but this isn't always the case as rates for CDs can differ based on the lender and term.
2. In the world of finance, a 6-month high-yield CD currently offers a higher interest rate of 4.49% compared to a money market account's rate of 4.32%, which could make the CD a more profitable choice.
3. However, investing experts recommend a diverse approach to personal-finance management, suggesting that savers could delegate half their cash to a high-yield CD and the other half to a money market account to capitalize on the benefits of both accounts and protect their money against future rate reductions.

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