$80,000 CD vs. $80,000 high-yield savings account vs. $80,000 money market account: Here’s which will be most profitable now

A Federal Reserve meeting in the final days of April that resulted in interest rates staying paused may not have been the development millions of American borrowers were hoping for. But it will essentially maintain the status quo for savers, many of whom have been accustomed to earning an interest rate of 4% or higher on their money. And while a certificate of deposit (CD), high-yield savings or money market account can all serve as a viable home for savers with small amounts of money, they can also be viable tools for those with five figures stored in an account now. 

The interest-earning potential on a $50,000 deposit can be substantial, for example, as could the returns savers stand to secure with deposits like $75,000 or $80,000. And though stock market returns with an $80,000 investment can be robust, the potential losses there could be significant, too. But that’s not a concern with any of these three savings vehicles, making them all worth exploring right now. 

Between an $80,000 CD, a high-yield savings and a money market account, which will actually be the most profitable for savers right now? Below, we’ll outline the returns savers can expect to see over the next year.

Earn more interest on your money with a high-rate savings account here.

$80,000 CD vs. $80,000 high-yield savings account vs. $80,000 money market account: Here’s which will be most profitable now

The interest-earning capacity of these three savings account types will be similar, but it won’t be identical. And, with a high-yield savings or money market account, it won’t be guaranteed as each comes with a variable rate that will adapt to market conditions over time. The CD, meanwhile, has a fixed rate that will hold through the account’s maturity date, but it won’t rise or fall if the rate climate changes. 

Here’s how much interest an $80,000 deposit into each can earn now, assuming the variable rate accounts hold and that no early withdrawal penalties are issued against the CD:

• $80,000 6-month CD at 4.10%: $1,623.53
• $80,000 high-yield savings account at 4.03% after six months: $1,596.08
• $80,000 money market account at 3.90% after six months: $1,545.08
• Most profitable account: The CD account

• $80,000 9-month CD at 4.05%: $2,417.90
• $80,000 high-yield savings account at 4.03% after nine months: $2,406.02
• $80,000 money market account at 3.90% after nine months: $2,328.77
• Most profitable account: The CD account

• $80,000 1-year CD at 4.10%: $3,280.00
• $80,000 high-yield savings account at 4.03% after one year: $3,224.00
• $80,000 money market account at 3.90% after one year: $3,120.00
• Most profitable account: The CD account

So, not only is the CD the most lucrative of these three options, but that interest will be locked and guaranteed as long as the saver maintains the account through the end of the term. Just understand that if interest rates rise during these six, nine or 12 months, the CD rate won’t, but the rates on the other two accounts likely will. Still, with the CD offering a bigger, guaranteed return, it can still be the best option to choose from this list, assuming you can keep the funds frozen.

See how much interest you could be earning with a CD account here.

The bottom line

Savers can earn between $1,624 and $3,280 with an $80,000 deposit made into a CD now, depending on the term length. While that makes this account more profitable than a high-yield savings or money market account, the differential between the three is negligible, and savers shouldn’t discount the alternative types without first examining each. For some, a CD could still be their best option, but for others, a high-yield savings or money market account could make more sense, while other savers may find it most advantageous to split their $80,000 among all three.