While it may be tempting to deposit a large, round number like $20,000, $30,000 or more into a certificate of deposit (CD) or a money market account now, the reality is that it takes a long time to build up those funds. And waiting to hit a milestone deposit amount before acting means missing out on elevated interest rates and big returns on your money in the interim. 

That's generally a mistake worth avoiding, especially with a money market account, as it has a variable interest rate that will change based on market conditions. If those conditions change, rates could rise from where they are now, allowing savers to earn even more on their money. So, if you have an amount such as $18,000 sitting in a traditional savings account, it may make sense to shift your money.

To better understand the value of a CD versus a money market account, savers should start by crunching the interest-earning potential each offers now. While this can be easy to determine with a fixed-rate CD, it becomes harder to determine with a money market account. Below, we'll break down the numbers savers should consider before depositing $18,000 into either type.

Start by seeing how much interest you could be earning with a CD account here.

$18,000 CD vs. $18,000 money market account: Which earns more interest now?

CD and money market account rates are competitive with each other this April, though the gap between the two could widen or narrow over time, depending on how the rate climate adapts. Here's how much interest each could earn now, calculated against today's top rates and the assumption that rates will remain constant for the money market account:

• $18,000 3-month CD at 3.90%: $172.99
• $18,000 money market account at 3.90% after three months: $172.99
• Difference between accounts: The interest earnings will be identical

• $18,000 6-month CD at 4.10%: $365.29
• $18,000 money market account at 3.90% after six months: $347.64
• Difference between accounts: The CD will earn $17.65 more

• $18,000 9-month CD at 4.05%: $544.03
• $18,000 money market account at 3.90% after nine months: $523.97
• Difference between accounts: The CD will earn $20.06 more

• $18,000 1-year CD at 4.10%: $738.00
• $18,000 money market account at 3.90% after one year: $702.00
• Difference between accounts: The CD will earn $36.00 more

In three of these four scenarios, the CD will earn more than the money market account. Even after just three months, the returns will be identical. And the CD interest will be guaranteed, thanks to the fixed rate, while the money market account interest will evolve, perhaps in a downward trajectory. 

At the same time, you won't have to give up access to your money with a money market account as you would with a CD, and thanks to compounding interest, you may be able to earn more interest with the money market account if you routinely contribute funds. Evaluate both carefully, then, before deciding. But don't wait too long to act, as you'll be leaving money on the table by keeping this much money in an account with a rate that's lower than any of those outlined above.

Get started with a top savings account online today.

The bottom line

An $18,000 CD account is positioned to earn more interest than a money market account of the same size over the next year, though that's not a guarantee, as the money market account interest rate will change and potentially rise, especially over an extended period. Evaluate both carefully, then, and consider the access you will have with both to best determine your next steps. For some, that could mean putting the full amount of money into a CD, for others it could mean the money market account, while a third set of savers may benefit most from splitting their funds between both account types.