$10,000 CD vs. $10,000 money market account: Which earns more interest now?

The interest-earning possibilities of CD and money market accounts are similar, but not identical, especially in today's cooling rate climate. Getty Images

Earning $4 or $5 on a $100 deposit into a savings account may seem like a lot of money on the surface. And it's not. But what if that deposit amount was larger? And what if the high interest rate you could secure now would remain the same for months or even multiple years? Add those components with the reality of compounding interest, and it becomes clear why many savers have turned to certificates of deposit (CD) accounts in recent years. Interest rates here have been comfortably over 4% for savers and those rates were fixed, allowing them to determine their interest-earning potential with precision.

On the other hand, that rate is fixed for a reason, namely because savers will need to keep their money untouched in the account for the full term (or length) or risk having to pay an early withdrawal penalty. This can understandably incentivize some savers while encouraging others to look for alternative ways to earn a high rate of return without having to forego access to their funds. And that's where a money market account comes into play. These accounts have similar rates to CDs, but they won't require savers to give up access to their funds. And some may even come with check-writing features, among other benefits.

With these two options to consider, then, and with overall interest rates still relatively high (albeit lower than they were in 2023 and 2024), savers may be wondering which could earn more interest on their money now, especially with a larger amount like a $10,000 deposit. Below, we'll do the math.

See how much more you could be earning on your money with a high-rate CD here.

$10,000 CD vs. $10,000 money market account: Which earns more interest now?

There is no uniform answer to this question. For starters, CD rates vary based on the lender and the term length. Money market accounts, meanwhile, have variable interest rates that will inevitably change over time, especially when measured against an extended term of multiple years. Currently, money market account rates top out around 4.32%, while the highest rates on CDs are topping out around 4.49% for 6-month CDs, while declining slightly for longer terms. So the math here, when comparing both accounts, won't be precise, and that volatility will need to be priced into any interest-earning expectations. For reference, here's what a $10,000 deposit into a CD account can earn now, tied to readily available rates:

$10,000 6-month CD at 4.49%: $222.04 for a total of $10,222.04$10,000 9-month CD at 4.31%: $321.54 for a total of $10,321.54$10,000 1-year CD at 4.40%: $440.00 for a total of $10,440.00$10,000 18-month CD at 4.16%: $630.45 for a total of $10,630.45

And here's what it would be over the same time frame for a money market account, assuming rates remain static:

$10,000 6-month money market account at 4.32%: $213.72 for a total of $10,213.72$10,000 9-month money market account at 4.32%: $322.28 for a total of $10,322.28$10,000 1-year money market account at 4.32%: $432.00 for a total of $10,432.00$10,000 18-month money market account at 4.32%: $654.95 for a total of $10,654.95

When comparing both options, then, it becomes clear that the interest-earning potential for both is similar. In some instances, you'll earn slightly more with a CD while in other cases, the money market account will earn you more on your money. 

The difference, however, in rate structure is stark: The above CD rates will also be the same in the months to come, while money market accounts are built to change. Savers will need to weigh the guaranteed interest they can earn with a CD, then, versus the slightly more they can maybe make with a money market account to determine which is their most profitable option.

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The bottom line

In some cases, a $10,000 CD can earn more than a money market will right now, while in others, a money market account will. When stuck between both, and with the benefits of each similar but not identical, savers may find that their optimal course of action is to split their funds between both account types: $5,000 into a CD and $5,000 into a money market account. This will allow them to earn the high rates both come with now while insuring their money against future rate reductions that may come.

Matt Richardson

Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.