If you were looking for a place to keep your money in recent years but wanted more than just a high interest rate, you may have considered turning to a money market account. These accounts operate similarly to high-yield savings ones, as their rates are almost identical. But they also offer other features, like the ability to write checks, that you wouldn't typically get with a high-yield or certificate of deposit (CD) account. 

Still, they're not fully advantageous for savers, either, as money market accounts have variable interest rates subject to change based on market conditions. That's a stark contrast to CDs, for example, which come with similarly high rates that will remain fixed for the full CD term, despite any volatility in the rate climate during that time. And with a short-term CD, in particular, savers can earn that high rate while still maintaining a level of flexibility as the account will mature in 12 months or less. 

So if you're looking for a home for a large, five-figure amount of money this July, both account types may be attractive. To better determine the value of each, however, it helps to calculate the interest-earning potential. Between a $20,000 short-term CD and a $20,000 money market account, which will earn more if opened now? Below, we'll crunch the numbers.

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$20,000 short-term CD vs. $20,000 money market account: Here's which earns more now

To measure the interest earnings of both accounts, you'll need the rate each comes with and the length of time during which the money will earn that rate. With a money market account, however, this will involve some conjecture as the rate can and likely will change over time, particularly over an extended period. Here, then, is what a $20,000 deposit into each account will earn on the assumption that no CD early withdrawal penalties are issued and that the money market account rate remains constant:

• $20,000 3-month CD at 4.40%: $216.46
• $20,000 money market account at 4.32% after three months: $212.59
• Difference between the accounts: The CD earns $3.87 more

• $20,000 6-month CD at 4.49%: $444.07
• $20,000 money market account at 4.32% after six months: $427.43
• Difference between the accounts: The CD earns $16.64 more

• $20,000 9-month CD at 4.26%: $635.66
• $20,000 money market account at 4.32% after nine months: $644.56
• Difference between the accounts: The money market account earns $8.90 more

• $20,000 1-year CD at 4.40%: $880.00
• $20,000 money market account at 4.32% after one year: $864.00
• Difference between the accounts: The CD earns $16 more

In only one of these four examples does the money market account earn more money than the CD, and just under $9 in that circumstance. But it's important to remember that this is all speculative, as money market account rates will change over time. In other words, if you want to earn more money and you want that interest to be guaranteed, in almost all scenarios, you're better served by depositing your $20,000 into a short-term CD instead of a money market account.

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The bottom line

The choice between a $20,000 short-term CD and a $20,000 money market account isn't a difficult one to make, at least in terms of the interest each account offers savers now. Still, if you can't afford to part with your money, even with one of the shorter terms on this list, a CD may not make sense for you. So weigh the pros and cons of each account type closely. You may ultimately decide that the best approach is to split your money between both.