$10,000 6-month CD vs. $10,000 money market account: Here’s which can earn you more right now

In a steady economic climate, giving up access to a large, five-figure portion of your money may not be the most advantageous approach. You’ll need access, after all, for deposits, withdrawals and timely investment opportunities. But this isn’t a normal economic climate, either. Recovering from the decades-high inflation of recent years, many Americans may feel unsure about where to keep their hard-earned money right now. And with inflation increasing again in recent months, albeit at a much lower level, and high interest rates on hold at least through mid-September, the question surrounding a home for your money becomes increasingly important to get right.

One major deciding factor, then, becomes the interest-earning potential. And with a certificate of deposit (CD) account or a money market account, savers can still earn substantial rates on their money right now. A CD will even provide a fixed interest rate for the full length of the term, assuming the saver keeps their money untouched during that period. So, in these instances, a 6-month CD could be an attractive alternative as it will allow savers to weather economic changes and rate fluctuations comfortably past the end of the year. 

But will the returns justify the loss of access, especially when money market accounts won’t require that same sacrifice? Specifically, between a $10,000 6-month CD and a $10,000 money market account, which could earn more right now? Below, we’ll crunch the numbers.

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$10,000 6-month CD vs. $10,000 money market account: Here’s which can earn you more right now

CD and money market account interest rates are around the same right now, meaning that the interest-earning potential to start is virtually identical. But that can and likely will change in the weeks and months to come, as money market accounts have variable rates responsive to market conditions, while the CD rate you opened your account with will be the same one it matures with. 

Assuming rates on the money market account remain constant, then, and assuming that no early withdrawal penalties are issued against the CD, here’s what a $10,000 deposit into each can earn now, tied to recently available rates:

• $10,000 6-month CD at 4.45%: $220.08
• $10,000 money market account at 4.32% after six months: $213.72
• Difference between the accounts: The 6-month CD earns $6.36 more 

While the difference in earnings between the accounts is negligible, the CD account here becomes the clear preferential option. Not only are earnings higher, but they’re guaranteed thanks to that locked rate. And with rate cuts on the horizon for as soon as this September and with money market account rates likely to decline when those cuts are ultimately issued, this interest-earnings differential could become stark by the time that six-month period has concluded.

Lock in a big return on your money with a high-rate CD here today.

What about high-yield savings accounts?

High-yield savings accounts come with similar rates to money market accounts currently (in the 4.25% to 4.35% range). But they also came with the same unfortunate caveat as those accounts do, namely, a variable interest rate likely to decline soon as rate cuts are issued. If you’re comfortable with that dynamic, knowing that it’ll be a sacrifice for maintaining access to your money in the way a CD account won’t allow, then these accounts could also be worth exploring and opening now. However, if the end goal remains earning as much interest as possible, a CD is arguably still your better recourse.

The bottom line

A $10,000 deposit into either a CD or money market account will earn savers a few hundred dollars right now, but that return will be guaranteed and predictable with a CD, neither of which a money market or high-yield savings account can offer now. Weigh the structure of each account type, then, versus the interest-earning potential to better determine which can truly be the secure and prosperous home for your $10,000 through the end of 2025.