Is a CD or a money market account better now? Here's what 3 experts think.
There are opportunities to earn big returns on your savings, but you'll need to know which account makes sense.
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.
The Federal Reserve held its benchmark rate at a range of 3.5% to 3.75% at its July meeting, the fifth straight pause on rate changes. However, three Fed officials broke ranks and voted to raise it at the latest meeting, and that split has led some analysts and experts to believe there will be more rate hike pressure at its next meeting. Case in point? As of early August, the CME Group's FedWatch Tool shows a nearly 70% probability of a rate hike at the next Fed meeting.
"We entered 2026 with the market expecting multiple rate cuts," says Derik Farrar, senior vice president and head of everyday banking and borrowing at U.S. Bank. "We've had no cuts, and now the next move is likely up."
If the Fed does raise interest rates, yields on deposit accounts may follow suit. That could benefit savers who open certain accounts now. Traditional savings accounts return a paltry yield, but many certificates of deposit (CDs) and money market accounts are currently offering rates of about 4% on average, slightly above the current 3.5% inflation rate. So. if you've got savings you want to start earning interest on, it may help to understand how these two accounts compare right now.
Find out more about your top savings options online today .
Is a CD or a money market account better now? Here's what 3 experts think.