$10,000 CD vs. High‑Yield Savings After Fed Cut
CBS News (Managing Your Money) compares how a $10,000 deposit would perform in short-term CDs versus a high‑yield savings account in the wake of a recent Federal Reserve rate cut. Using current advertised yields (examples: 3‑month CD 4.10%, 6‑month CD 4.30%, HYSA 4.20%), the piece calculates dollar returns over multiple terms, highlights that differences are small over many short horizons, and recommends splitting funds between fixed-rate CDs and liquid high‑yield accounts given the prospect of further Fed cuts.
Economy
Personal Finance
📌 Key Facts
- Federal Reserve recently cut interest rates (article notes further cuts expected in October and December 2025).
- Sample rates and dollar returns: 3‑month CD at 4.10% yields $100.96 on $10,000; 3‑month high‑yield savings at 4.20% yields $103.39 (HYSA $2.43 more).
- Longer examples: 6‑month CD at 4.30% yields $212.74 vs. HYSA 4.20% at $207.84 (CD $4.90 more); 1‑year CD and HYSA both at 4.20% yield $420.00.