$10,000 high-yield savings account vs. $10,000 money market account: Here's which earns more
If you're looking for a place to keep $10,000 or more of your money now, a high-yield savings account is worth considering.
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If you have an extra $10,000 in your savings account right now, you may consider yourself fortunate. After all, in the economic climate of recent years, inflation caused severe damage to many Americans, forcing them to rely on credit cards and savings to make ends meet. And while inflation is now significantly lower than it was just a few years ago, the financial impacts are still being felt and likely will be for the foreseeable future. So if you've been able to weather the financial storms of the recent past, you're in an advantageous position. And if you have a five-figure sum of money put to the side, you're in an even better place.
But to make that money work for you – and you'll want it to, considering the sacrifice it took to save it during the previous economic downturn – it's important to keep it in the right place. And in today's rate climate, that's unlikely to be a traditional savings account, which comes with an average interest rate under 0.40% now. It can, however, be a high-yield savings or money market account instead. To better determine the value of each, it helps to calculate the potential interest-earning opportunities both account types offer savers looking to make a $10,000 deposit right now. Below, we'll crunch the numbers.
See how much more money you could be earning with a high-yield savings account here now.
$10,000 high-yield savings account vs. $10,000 money market account: Here's which earns more now
Currently, the top high-yield savings accounts and the top money market accounts have approximately the same interest rates. According to Bankrate, high-yield savings accounts top out around 4.30% now, while money market ones are around 4.32%. Both come with variable interest rates poised to decline if interest rate cuts are issued again later this year. Because of that, it's difficult to predict with any real certainty how much a $10,000 deposit will earn over time.
Here's what the earnings would look like, however, over a few different time periods, assuming today's rates remain unchanged:
$10,000 high-yield savings account at 4.30% over six months: $212.74
$212.74 $10,000 money market account at 4.32% over six months: $213.72
$213.72 Difference between the two accounts: The money market account makes around $1 more
$10,000 high-yield savings account at 4.30% over nine months: $320.80
$320.80 $10,000 money market account at 4.32% over nine months: $322.28
$322.28 Difference between the two accounts: The money market account makes around $1.50 more
$10,000 high-yield savings account at 4.30% over one year: $430.00
$430.00 $10,000 money market account at 4.32% over one year: $432.00
$432.00 Difference between the two accounts: The money market account makes around $2 more
So, if you deposit $10,000 into either account now, you'll virtually earn the same amount of interest over time, assuming rates on both accounts react similarly to market dynamics. In other words, you can't make a wrong decision by choosing either. You'll just need to determine if a variable-rate savings account makes sense for your money now or if you prefer the high (and fixed) rates a certificate of deposit (CD) account can offer as an alternative.
Compare your top savings account options online now.
The bottom line
It took a lot of hard work and sacrifice to save $10,000 in the economic climate of recent years so it makes sense to make that money work for you as much as you can.
With a high-yield savings or money market account you can do just that, thanks to interest rates on these accounts that are exponentially higher than what's available with traditional savings accounts. But since these savings vehicles both have variable rates that will change over time and because most economists expect interest rate reductions later in 2025, it's also worth exploring what's potentially available with a CD account, even if means having to temporarily forego access to your funds. By exploring all three options and by calculating the interest-earning opportunity for each you'll be better able to determine not only where you should keep this $10,000 right now but into the future as well.
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