$20,000 CD vs. $20,000 money market account: Which will earn more interest in 2026?

Money market accounts have multiple advantages for savers. They come with interest rates exponentially higher than traditional accounts do. And they allow savers to make deposits and withdrawals as needed, maintaining a baseline level of flexibility. But they also have check-writing abilities that other accounts do not. So, on the surface, they seem like one of the better places to keep a large amount such as $20,000 right now.

Certificate of deposit (CD) accounts, meanwhile, require savers to keep their money frozen in the account for the full term to realize their interest earnings. At the same time, CDs also have competitive rates now and, unlike a money market account, that rate is fixed and it won’t decline in the cooling interest rate environment many are anticipating for 2026. So this could also be a viable home for a large, five-figure deposit currently.

To better determine which makes the most financial sense for your circumstances, then, it can help to know what the interest-earning potential each offers for a $20,000 deposit. While this is just one factor to consider before opening either, it’s arguably the most important to know. So, between a $20,000 CD and a $20,000 money market account, which will actually earn more interest in 2026? Below, we’ll crunch the numbers.

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

$20,000 CD vs. $20,000 money market account: Which will earn more interest in 2026?

CD interest is simple to calculate because of the account’s fixed interest rate. Calculating the potential returns on a money market account, however, will require some inherent speculation as the rate can and will fluctuate, particularly over an extended period. Here’s how much each could earn with a $20,000 deposit currently, calculated against today’s rates with the assumption that the money market account interest rate is constant throughout:

• $20,000 3-month CD at 3.90%: $192.21
• $20,000 money market account at 4.10% after three months: $201.92
• Difference between the accounts: The money market account earns $9.71 more.

• $20,000 6-month CD at 4.10%: $405.88
• $20,000 money market account at 4.10% after six months: $405.88
• Difference between the accounts: Both accounts will earn the same amount of interest.

• $20,000 9-month CD at 4.00%: $597.05
• $20,000 money market account at 4.10% after nine months: $611.90
• Difference between the accounts: The money market account earns $14.85 more.

• $20,000 1-year CD at 4.10%: $820.00
• $20,000 money market account at 4.10% after one year: $820.00
• Difference between the accounts: Both accounts will earn the same amount of interest.

So, at the start of 2026, a money market account of this size stands to be marginally more profitable. But that’s all on the assumption that the rate remains the same throughout the year. Today’s higher money market account rate could easily become tomorrow’s lower one should the rate climate continue to cool as anticipated later this year. Carefully consider both, then, but if you’re looking for guaranteed interest on your five-figure deposit, and not potential interest, a CD account could be your better option.

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How you could be losing money now

With rates on both CDs and money market accounts, as noted, easily over 3% now, and with rates on the best high-yield savings accounts within the same range, there are multiple ways in which savers can outpace today’s current 2.7% inflation rate. One way to avoid, though? Traditional savings accounts. 

By keeping any significant amount of money in one of these accounts now, you’re essentially losing money as these accounts come with rates, on average, that are under 0.50% now. Put another way, at just 0.39% currently, the best CD and money market account rates above are around 950% more profitable. Skip the traditional savings account, then, and pivot to one of these more lucrative alternatives instead.

The bottom line

Both CDs and money market accounts offer savers a viable way to earn hundreds of dollars in interest on a $20,000 deposit this year. And, with a CD, that will be guaranteed as long as the saver keeps their money untouched through the account’s maturity date. Consider evaluating both, then, to determine which is the better fit for your savings strategy in 2026. And aim to keep the money in a traditional savings account limited.