With rates currently over 4%, certificates of deposit (CDs) can seem like a no-brainer: They offer a guaranteed return with zero risk. But despite the tempting rates, I've never opened a CD, and I don't plan to. Here's why.

1. My money needs to stay flexible

One of the biggest drawbacks of CDs is the lack of flexibility. When you put your money in a CD, you're committing to leave it there for months or even years. If you need to withdraw money before the CD matures, you'll often face penalties that eat into your interest and sometimes even your principal.

I prefer to keep my cash in one of the best high-yield savings accounts. The rates are currently similar to CDs, and I can access my money anytime without worrying about penalties. Life is unpredictable, and I'd rather have quick access to my cash if an emergency, or an investment opportunity, comes up.

2. I can earn more elsewhere

While a 4% (or higher) return sounds great, it's not the best option for growing wealth over the long term. CDs are safe, but they often lag behind inflation and don't offer the same upside as other investments.

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

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of February 16, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of February 16, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express'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.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.30% Rate info The annual percentage yield (APY) is accurate as of Jan. 24, 2025, and subject to change at the Bank's discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

Instead, I keep most of my money in stocks and index funds through a tax-advantaged retirement account: a Roth IRA. Historically, the stock market has returned 10% annually over the long run -- far outpacing even the best CD rates. Sure, the market has ups and downs, but since I don't need that money right away, I'm willing to ride out the volatility for higher potential returns.

3. Interest rates are always changing

Locking my money into a CD feels like a gamble. If I open a CD today at 4%, what happens if rates climb to 5% next month? I'll be stuck with a lower rate while others are earning more.

By keeping my cash in a more flexible account, I can take advantage of rising rates without being locked into a long-term commitment. Some savings accounts adjust their rates regularly, meaning I can benefit from increasing returns without losing access to my money.

Earn more than 10 times the national average on your savings. Open a high-yield savings account today.

There are better options out there

CDs can be a good option for those who prioritize safety and don't mind locking up their money. But for me, flexibility, higher earning potential, and the ability to adapt to changing rates are more important.

If you're considering a CD, ask yourself: Do I need access to my money? Am I comfortable with the returns? Do I want to lock in a rate now? Depending on your answers, a CD might be the right choice for you. But for now, I'll be keeping my cash elsewhere.