High-Yield Savings Beats Short CDs for $15,000 Deposit, but Longer CDs Pay More

Savers will earn just $57 in annual interest on a $15,000 deposit in a traditional savings account. The average rate stands at 0.38%, down from 0.39% in March. That amounts to a little more than $1 per week over the next year.

Better options exist. After the Federal Reserve held interest rates steady in April and plans to keep them there for now, savers can seek high-rate accounts without fear of quick drops. For a $15,000 deposit, three stand out: certificate of deposit accounts, high-yield savings accounts and money market accounts. All offer rates far above traditional savings.

High-yield savings and money market accounts carry variable rates tied to market conditions. CDs lock in fixed rates until maturity. Projections over nine months, assuming no rate changes and no penalties, show these earnings:

For three months:

$15,000 3-month CD at 3.90%: $144.16

$15,000 high-yield savings account at 4.03%: $148.89

$15,000 money market account at 3.90%: $144.16

The high-yield savings account wins.

For six months:

$15,000 6-month CD at 4.10%: $304.41

$15,000 high-yield savings account at 4.03%: $299.26

$15,000 money market account at 3.90%: $289.70

The CD account leads.

For nine months:

$15,000 9-month CD at 4.05%: $453.36

$15,000 high-yield savings account at 4.03%: $451.13

$15,000 money market account at 3.90%: $436.65

The CD account leads again.

CDs prove more profitable in two of three cases, with guaranteed returns unlike the variables. Rate shifts could make CDs the top choice across all terms. Savers should deposit only what they can leave untouched, as early CD withdrawals trigger penalties that erase interest.

Deposits into these accounts now yield $148 to $455 over nine months, triple the traditional account's $57 and accessible three months sooner. Rates remain high, so savers can compare all three or split funds.