High-Yield Savings Beats Short CDs, but Longer CDs Earn Most on $30,000 Deposit

Saving large sums has grown easier in recent years thanks to high interest rates on certain accounts. These rates burden borrowers but benefit savers, who have shifted funds into accounts offering up to 6% or 7%. For those with thousands or tens of thousands in a standard savings account, better options exist.

A five-figure sum like $30,000 carries strong earning potential, particularly with compounding. Three main account types suit such deposits: certificates of deposit, or CDs; high-yield savings accounts; and money market accounts. Each offers different rates.

To pick the best for $30,000, compare current interest earnings. CD rates stay fixed, while high-yield savings and money market rates vary. The figures below assume high-yield savings and money market rates hold steady for nine months.

After three months:

$30,000 in a 3-month CD at 3.90% earns $288.32.

$30,000 in a high-yield savings account at 4.03% earns $297.79.

$30,000 in a money market account at 3.90% earns $288.32.

The high-yield savings account leads.

After six months:

$30,000 in a 6-month CD at 4.10% earns $608.82.

$30,000 in a high-yield savings account at 4.03% earns $598.53.

$30,000 in a money market account at 3.90% earns $579.40.

The CD account leads.

After nine months:

$30,000 in a 9-month CD at 4.05% earns $906.71.

$30,000 in a high-yield savings account at 4.03% earns $902.26.

$30,000 in a money market account at 3.90% earns $873.29.

The CD account leads.

Savers can pull in nearly $300 after three months from a high-yield savings account or more than $900 from a nine-month CD. The money market account earns the least among the three, though the gap stays small. Its check-writing feature may appeal to those seeking convenience despite lower returns. Savers should weigh all options and consider dividing funds across accounts.