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When looking for a place to keep your money, there are two key considerations: security for the funds deposited and the interest-earning potential. While having one or the other can be advantageous, having both is critical for savers, particularly in today’s unique economic climate. With inflation materially lower than it was in recent years, but with interest rates still high and the costs of everyday living elevated, it’s important that savers earn as much interest on their money as possible while protecting their principal from market conditions.
Both certificates of deposit (CDs) and high-yield savings accounts offer that protection as they’re both FDIC-insured. And while CDs have fixed interest rates and high-yield savings accounts have variable ones, the principal deposited in each will remain untouched. The primary difference, however, will be impacted by the interest rate for each account type and changes there over time. This is a significant consideration for savers, particularly those considering a large, five-figure deposit.
To better determine which makes more sense, then, it helps to match the interest-earning potential of a $10,000 CD against a $10,000 high-yield savings account if opened now, in June 2025. Below, we’ll do the math.
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$10,000 CD vs. $10,000 high-yield savings account: Which earns more interest now?
In recent years, rates on CDs and high-yield savings accounts have been comparable. Currently, savers can secure high-yield savings accounts in the range between 4.25% and 4.30%, according to Bankrate. But short-term CDs have significantly higher rates, ranging from 4.31% for a 9-month CD to as high as 4.49% for a 6-month CD.
The major caveats here, however, are twofold: high-yield savings account rates will change over time, making interest-earning calculations highly speculative. CD rates won’t, but they’ll only last for the full CD term. For context, here’s what both accounts could earn now, assuming the same time frame and an unchanged high-yield savings account rate for that full period:
- $10,000 6-month CD at 4.49%: $222.04 for a total of $10,222.04 after six months
- $10,000 9-month CD at 4.31%: $321.54 for a total of $10,321.54 after nine months
- $10,000 high-yield savings account at 4.25% after six months: $210.29 for a total of $10,210.29
- $10,000 high-yield savings account at 4.30% after six months: $212.74 for a total of $10,212.74
- $10,000 high-yield savings account at 4.25% after nine months: $317.09 for a total of $10,317.09
- $10,000 high-yield savings account at 4.30% after nine months: $320.80 for a total of $10,320.80
Calculating these potential returns, then, the benefits of a CD become even clearer. Not only will savers generally earn more interest, but that return will be guaranteed versus the high-yield savings account rate, which could look considerably different in six or nine months from now. This is not to say that high-yield savings accounts don’t also have a place in your wider savings portfolio, but if your goal right now is to earn as much interest in as short a time frame as possible – and for that return to be fixed, regardless of rate climate changes over time – a CD is your better option.
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The bottom line
A $10,000 CD can earn slightly more interest than a $10,000 high-yield savings account if opened now, in June 2025. But it’s important to remember that the difference in earnings is negligible, and if you need to maintain access to your funds, a high-yield savings account may be preferable as you won’t get hit with an early withdrawal penalty in the same way you would with a CD. So consider using this time to explore both options and, potentially, splitting your funds between both to take advantage of what each has to offer in today’s cooler but still considerable interest rate environment.