If you have $20,000 sitting in a checking account, you might be tempted to lock it into a certificate of deposit (CD) and earn some risk-free interest on your cash. And with current rates sitting above 4.00%, that's not a bad idea. But, it might not be your best option.

Let's take a look at how much you'd earn from a CD in April 2025 -- and why a high-yield savings account (HYSA) might be the better move for you.

CDs earn high rates, but they lock up your cash

CD rates as of mid-April 2025 are as high as 4.65% for seven months, with other term lengths hovering between 4.50% and 4.60% -- a solid return for a low-risk product.

But CDs come with a trade-off: You're locking up your money for a set period, and withdrawing it early usually means paying a penalty. Plus, if interest rates go up while your money is locked in, you're stuck with the older, lower rate.

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

Product	APY	Min. to Earn
American Express® High Yield Savings Account Member FDIC. APY 3.70% Rate info 3.70% annual percentage yield as of April 25, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings Account On American Express's Secure Website. Member FDIC.	3.70% Rate info 3.70% annual percentage yield as of April 25, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings Account On American Express's Secure Website.
CIT Platinum Savings Member FDIC. APY 4.10% APY for balances of $5,000 or more Rate info 4.10% 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.	4.10% APY for balances of $5,000 or more Rate info 4.10% 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.
Barclays Tiered Savings Member FDIC. APY 4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%. Min. to earn $0 Open Account for Barclays Tiered Savings On Barclays' Secure Website. Member FDIC.	4.10% Rate info Balances less than $250,000 earn 4.10%, and balances greater than $250,000 earn 4.30%.	$0	Open Account for Barclays Tiered Savings On Barclays' Secure Website.

So, how much would you stand to earn on a $20,000 CD if you opened one this month? To make the math simple, let's take the highest CD rate we can find on a 12-month CD (currently 4.50%) and calculate to determine your payout at maturity. A $20,000 CD with an APY of 4.50% and a term of 1-year would earn $900 in interest by the end of the CD term.

HYSAs are comparable, and you keep control

High-yield savings accounts are still going strong. Right now, some of the top HYSAs are offering up to 4.40% APY, competitive with the best CD rates available.

At that rate, a $20,000 balance could earn about $880 in interest over the next year -- and you wouldn't have to tie up your money.

That's because with an HYSA, your money stays liquid. You can move it, withdraw it, or use it if an emergency pops up -- no fees, no penalties.

That flexibility makes HYSAs a better fit for most people, especially if you're not 100% sure you can leave your money untouched for a full year.

When a CD might still make sense

There are still a few situations where a CD could be a good choice. If you know you won't need the money during the CD's term and you prefer a fixed, guaranteed return, it can offer some peace of mind. It's also a good option for people who want to reduce the temptation to dip into their savings.

But with rates on HYSAs nearly matching CDs -- and with full access to your money at any time -- the case for locking in cash is weaker than it's been in a while.

Keep your money liquid and lucrative

If you're trying to decide where to park your savings, it's hard to ignore the advantages of a high-yield savings account. With comparable rates and full access to your funds, a HYSA could help you grow your money without tying it up.