Traditionally, interest rates have been higher on long-term CDs than they were on short-term CDs. And the logic was easy to understand. Since long-term CDs, which have maturity dates longer than one year, require the saver to keep the money with the bank for an extended period, they were often rewarded with higher rates in return. But the unique interest rate climate of recent years has reversed that trend. With predictions on the future of interest rates difficult to make now, lenders have since been offering higher rates on short-term CDs instead.

At the same time, rates on alternative accounts like high-yield savings and money market ones, are also elevated. And those won't require savers to forego access to their money the same way they would with a locked CD account. This makes either an attractive choice right now. To better determine the value, then, it can help to crunch the potential interest. And with a sizable deposit amount of $10,000, for example, savers could be looking at a substantial return on their money. Between a $10,000 short-term CD, however, and a $10,000 money market account, which will earn more interest right now? That's what we'll calculate below.

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$10,000 short-term CD vs. $10,000 money market account: Which earns more interest now?

Each savings vehicle has a different interest rate structure, which will inevitably impact what savers can earn by depositing $10,000. CD rates are fixed, meaning they will remain frozen for the full CD term, while money market account rates are variable and will adapt based on market conditions. So, while similarly high right now, they're unlikely to remain so over time. Here's what each would earn with a $10,000 deposit if opened this July, calculated against readily available interest rates, on the assumption the money market account rate remains static:

• $10,000 3-month CD at 4.40%: $108.23 for a total of $10,108.23
• $10,000 money market account at 4.32% after three months: $106.29 for a total of $10,106.29
• Difference between the two accounts: The CD earns $1.94 more

• $10,000 6-month CD at 4.49%: $222.04 for a total of $10,222.04
• $10,000 money market account at 4.40% after six months: $217.63 for a total of $10,217.63
• Difference between the two accounts: The CD earns $4.41 more

• $10,000 9-month CD at 4.26%: $317.83 for a total of $10,317.83
• $10,000 money market account at 4.40% after nine months: $328.22 for a total of $10,328.22
• Difference between the two accounts: The money market account earns $10.39 more

So, a $10,000 short-term CD will earn slightly more than a money market account in two of the above three scenarios, but the money market account will earn more compared to the 9-month CD. That said, there isn't a clear winner when comparing the interest-earning potential of either account type right now. 

But with expected later this year, perhaps as soon as September, and with a money market account rate variable, savers will need to weigh the guaranteed return they can get with a short-term CD versus what they may be able to earn with a money market account. That way, they can better determine which option fits their financial needs.

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The bottom line

Both short-term CDs and money markets offer savers effective ways to grow their money now. And with traditional savings account rates averaging less than 0.40% now, savers are essentially losing money by not transferring their funds into one of these account types instead. If you're unsure of which one makes more sense then consider splitting the funds between both, which allow you to earn the high rates each comes with while still keeping a portion of your funds liquid in case of emergencies or unexpected expenses.