When it comes to stashing your cash, certificates of deposit (CDs) and high-yield savings accounts (HYSAs) are two of the best low-risk options. Both offer better interest rates than traditional savings accounts, but they work in different ways.

Let's break down the pros and cons of each to help you decide where to put your hard-earned money for the best return.

How CDs work

A CD is a fixed-term deposit that locks your money away for a set period -- typically anywhere from three months to five years. In return, you get a guaranteed interest rate that's better than a regular savings account.

Pros of CDs:

• Higher rates: CDs have higher rates than standard savings accounts.
• Guaranteed returns: Your rate is locked in, so it won't change.
• No temptation to spend: Withdrawing early results in penalties.

Cons of CDs:

• Less flexible: You can't access your money before maturity without paying a penalty.
• Rates are fixed: If interest rates rise, you're stuck with a lower rate.
• Minimum deposits required: Many CDs require a higher starting balance.

CDs are great if you won't need your money soon and want to lock in a guaranteed return.

Our Picks for the Best High-Yield Savings Accounts of 2025

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.70% Rate info 3.70% annual percentage yield as of March 11, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.70% Rate info 3.70% annual percentage yield as of March 11, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
CIT Platinum Savings Member FDIC. APY 4.30% APY for balances of $5,000 or more Rate info 4.30% APY for balances of $5,000 or more; otherwise, 0.25% APY Min. to earn $100 to open account, $5,000+ for max APY Open Account for CIT Platinum Savings On CIT's Secure Website. Member FDIC.	4.30% APY for balances of $5,000 or more Rate info 4.30% APY for balances of $5,000 or more; otherwise, 0.25% APY	$100 to open account, $5,000+ for max APY	Open Account for CIT Platinum Savings On CIT's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.70% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Feb. 6, 2025. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.

Lock in a competitive APY before rates decrease. Check out our curated list of some of the best CDs available now.

How high-yield savings accounts work

An HYSA functions just like a regular savings account, but with a much better interest rate. They can easily offer 10 times the national average savings account rate of 0.41%. You can deposit and withdraw money freely, but rates can fluctuate over time.

Pros of HYSAs:

• High returns: HYSAs have higher interest rates than traditional savings accounts.
• Full liquidity: Withdraw anytime without penalty.
• FDIC insured: Your savings are safe and secure.

Cons of HYSAs:

• Rates can change: Banks adjust rates based on market conditions.
• May have withdrawal limits: Some banks cap the number of withdrawals per month.
• Lower rates: CDs might offer higher rates in some cases.

HYSAs are perfect for you if you want easy access to your money while still earning solid interest.

Start earning up to 10 times the national average interest rate today. Check out our list of best high-yield savings accounts now.

Which one actually makes you more money?

Currently, some of the best HYSAs offer rates between 3.70% and 4.50%, while top CD accounts can go as high as 4.50%. So, if you're looking at pure interest earnings, there isn't too much of a difference right now.

But here's the catch: If interest rates rise, HYSAs could become the better option since CD rates are locked in. On the other hand, if interest rates begin to drop, you'll likely come out ahead with a CD since your rate can't change.

Which option is better for you depends on your financial goals:

• If you need access to your money at any time, an HYSA is the clear winner. You'll still earn solid interest, and you can withdraw funds whenever needed.
• If you want to lock in a guaranteed rate, a CD might be the smarter choice -- as long as you won't need the money before it matures.

Where to find the best rates

No matter which option you choose, it pays to shop around. Online banks and credit unions often offer better rates than traditional brick-and-mortar banks.

Luckily, we've done the hard work for you. You can check out our list of the best savings accounts and our list of the best CDs now.