Comparison
High-Yield Savings vs CD
Keep the emergency fund in instant-access savings and use CDs only for money with a known date. If rates look likely to fall, locking a term becomes more attractive.
Option A
High-yield savings
In favour
- Withdraw any time without penalty
- Rate can rise if benchmark rates rise
- No fixed term to plan around
Against
- Rate can also fall without notice
- Usually pays slightly less than a comparable CD
- Easy access makes it easy to spend
vs
Option B
Certificate of deposit
In favour
- Rate is locked for the whole term
- Typically a little higher than instant-access savings
- The term itself discourages dipping in
Against
- Breaking early forfeits months of interest
- Money is committed until maturity
- You miss out if rates rise during the term
Settle it
CD & Fixed Deposit Calculator
maturity = deposit × (1 + APY/n)n × years
Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.