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Historically, investing in the stock market has shown to result in returns of around 10% or higher. And, in today’s interest rate climate, top rates on select savings accounts often top out around 4%, approximately. So, it makes sense then to invest a five-figure amount of money into the market versus storing it in a high-yield account, right? Not necessarily.
The economic terrain many savers find themselves in right now is an unusual one. Unemployment just dropped, but inflation is surging again. High interest rates, meanwhile, aren’t expected to decline anytime soon as the Federal Reserve takes a “wait and see” approach. Geopolitical tensions and overseas conflicts have also resulted in major market losses and gains, all in the past few weeks. Against this backdrop, savers looking for a home for a large, five-figure amount like $20,000 may understandably want to take an unconventional approach. And that may mean the use of a certificate of deposit (CD), high-yield savings or money market account – or perhaps even all three.
To better determine the value each offers right now, it helps to first know the interest-earning potential associated with each account type. With a $20,000 deposit made now, which stands to earn more in 2026? Below, we’ll break down the numbers that savers should know before getting started.
Start by seeing how much interest you could be earning with a top CD account here.
$20,000 CD vs. $20,000 high-yield savings account vs. $20,000 money market account: Which will earn more in 2026?
While calculating the interest-earning capability of a CD is simple to do because of the account’s fixed interest rate, some speculation will be required with the high-yield savings and money market accounts, as both come with variable rates that will rise or fall based on market conditions. Still, savers can gain an approximate idea of what they stand to earn.
Here’s how much each will earn if opened now, calculated against today’s top rates and the assumption that they remain constant:
- $20,000 3-month CD at 3.90%: $192.21
- $20,000 high-yield savings account at 4.03% after three months: $198.52
- $20,000 money market account at 4.00% after three months: $197.07
- Most profitable account: The high-yield savings account
- $20,000 6-month CD at 4.10%: $405.88
- $20,000 high-yield savings account at 4.03% after six months: $399.02
- $20,000 money market account at 4.00% after six months: $396.06
- Most profitable account: The 6-month CD
- $20,000 9-month CD at 4.05%: $604.48
- $20,000 high-yield savings account at 4.03% after nine months: $601.50
- $20,000 money market account at 4.00% after nine months: $597.05
- Most profitable account: The 9-month CD
While the interest earnings after nine months won’t technically be available until 2027, the approximate $600 that savers can secure by waiting until then could be worth it. And none of these accounts, despite their different structures and rates, are vastly different from one another, to make one the clear winner for your $20,000 deposit.
Evaluate all three carefully, then, and weigh the flexibility a high-yield savings account can offer against the check-writing features a money market account utilizes against the high, fixed rate the CD offers to best determine which fits your budget and goals.
Compare your top savings account options online here.
The bottom line
A $20,000 deposit into a CD is set to be more profitable than that same amount of money deposited into a high-yield savings account or a money market account over the next nine months, assuming interest rates on the latter two accounts don’t materially change. Still, all three are offering competitive returns now, and savers won’t need to deal with the daily volatility of the stock market to realize these returns, especially with a CD account. Consider shopping around online, then, to see what rates you may be able to secure, as online banks frequently have higher rates than their counterparts with in-person branch locations.
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