How much interest can $200,000 earn over the next year? 4 savings account options to know
A $200,000 deposit will grow differently over the next year depending on which savings account it's kept in.
Considering a $200,000 deposit, four types of accounts offer varied interest rates. A traditional savings account at 0.38% variable rate yields $760 in interest, a money market account at 4.00% variable rate generates $8,000, a high-yield savings account at 4.10% variable rate earns $8,200, and a 1-year CD account at 4.40% fixed rate provides $8,800.
These rates could increase due to potential Federal Reserve rate hikes, potentially boosting earnings. However, CD interest remains unchanged until maturity, so it's important to weigh the benefits against the possibility of higher rates. Traditional savings accounts offer minimal returns, so alternatives are recommended for maximizing $200,000.
Written by urgent.news from CBS News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
