$100,000 CD vs. $100,000 high-yield savings account: Which will earn more over the next year?

A report released this week showing inflation declining in July serves as a good reminder for where savers find themselves in today’s economy. Higher inflation, after all, has led to elevated interest rates in recent years. And even though there were minor reductions in the final months of 2024 and 2025, interest rates have held steady throughout 2026. An inflation rate of 3.4%, revealed on Wednesday, although improved compared to recent months, is unlikely to lead to any imminent cuts as it remains more than a full percentage point above the Federal Reserve’s target 2% goal.

So, if you’re a saver who hasn’t yet taken advantage of today’s elevated interest rate climate, now can still be a good time to do so. And that’s especially true if you have a large, six-figure sum of money at play. While investing $100,000, for example, may be tempting, you can more safely grow it without any market risks by transferring it into a certificate of deposit (CD) or high-yield savings account instead. With a high-yield savings account specifically, you’ll maintain access to your funds to pivot as needed, unlike a CD which will require you to keep the account locked to earn a fixed interest rate.

To best determine the value each offers in today’s economic climate, it helps to start with the interest-earning capacity blockociated with each. Between a $100,000 CD and a $100,000 high-yield savings account, then, which will earn more over the next year? That’s what we’ll break down below.

Earn more interest on your money with a high-yield savings account now.

$100,000 CD vs. $100,000 high-yield savings account: Which will earn more over the next year?

Calculating the interest-earnings of a CD is simple to do accurately thanks to the account’s fixed interest rate that won’t change throughout the term. Calculating the returns on a high-yield savings account, however, requires some speculation as the account has a variable rate that will be responsive to market changes. But with the interest rate climate relatively stable right now, savers can still gain an approximate idea of what they stand to earn. 

Here’s how much interest each account will earn over the next year with a $100,000 deposit made now, calculated against the top rate blockociated with each and the blockumptions that the principal isn’t adjusted and that the high-yield savings account rate holds for the full 12 months:

• $100,000 1-year CD at 4.40%: $4,400.00
• $100,000 high-yield savings account at 4.10% after one year: $4,100.00
• More profitable account: The 1-year CD will earn $300 more.

So not only will the CD earn hundreds of dollars more in interest in this example, it will be guaranteed in a way that the high-yield savings account cannot offer. 

That said, if interest rates rise over the next year, returns here will get skewed, potentially even making the high-yield account more profitable depending on how rates change. Carefully consider both before getting started, then, and don’t forget about the early withdrawal penalty you’ll need to pay with a CD if you ultimately decide to withdraw your money before the maturity date hits.

Learn more about your top CD account options here.

The bottom line

A $100,000 CD will earn more interest than a $100,000 high-yield savings account over the next year – calculated against today’s top interest rates. That can and likely will change, however, if the interest rate climate does, which is certainly possible over an extended period. Carefully evaluate both options, then, before making a final decision and don’t discount the advantages of splitting your funds between both account types, which may be your best recourse in today’s still uneven and unpredictable economic terrain.