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A certificate of deposit (CD) or a high-yield savings account can be a great place to stash some cash for your short-term savings goals. With a little bit of savvy comparison shopping, you’re likely to find above-average interest rates with both account types, the vast majority of which are FDIC insured. But both CDs and high-yield savings accounts have their pros and cons. If you’re trying to decide which account type is best for you, here’s what you need to know about CDs vs. savings accounts so you can make a more informed decision.
Recommended High-Yield Savings Accounts
| Bank Account | APY | Minimum Deposit | Learn More |
|---|---|---|---|
|
| 4.30%
*Annual Percentage Yield (APY) is variable and is accurate as of 6/10/2025. Rate is subject to certain terms and conditions. You must deposit at least $5,000 to open your account and maintain $25 to earn the disclosed APY. Rate and APY may change at any time. Fees may reduce earnings. | $5,000 | Open Account |
|
| Up to 4.51%
Earn up to 4.51% APY on savings, and 0.51% APY on checking when you meet requirements. | N/A | Open Account |
|
Member FDIC | 0.50% - 3.80%
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus. | N/A | Open Account |
|
| 3.85%
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. *APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100. | $100 | Open Account |
CIT Disclosures
For complete list of account details and fees, see our Personal Account disclosures.
Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance.
*APYs — Annual Percentage Yields are accurate as of September 23, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.85% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
How Does a Certificate of Deposit Work?
A certificate of deposit is a type of deposit account you can open at most credit unions and banks, including many online banks.
What sets CDs apart from most other types of deposit accounts (e.g, checking accounts, savings accounts, high-yield savings accounts and money market accounts) are their restrictions. When you deposit cash into a CD, you agree not to withdraw those funds for a set period of time. This time frame is called the CD's term. A CD term could last anywhere from a few months to several years, depending on the account.
Quick Tip
If you open a five-year CD, you agree to leave the funds in the account for five years, until the CD reaches maturity. If you withdraw early, you may have to pay a penalty, which could offset some or all of the interest you earned.
In exchange for agreeing not to touch your CD funds for a predetermined period of time, a bank or credit union may offer you higher interest rates. At the time of writing, some of the best CD rates are close to or even above 4.00% APY. While you may be able to find savings accounts with comparable rates today, it could change at any time, whereas CD rates are locked in for the duration of their specified term.
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How Does a High-Yield Savings Account Work?
A high-yield savings account typically pays higher-than-average interest on your money. At present, some of the best high-yield savings accounts also offer interest rates around or even beating 5.00% APY.
With a high-yield savings account, you deposit funds just like you would with any other savings account, paying attention to any minimum balance or opening deposit requirements. When you need to access funds, you can withdraw or transfer them online, depending on your account.
Keep in mind that with savings accounts, your bank might limit the number of withdrawals you can make per month. You often can’t make more than six transfers or withdrawals from a high-yield savings account during a calendar month, though there may be some exceptions to this rule.
Featured High-Yield Savings Accounts
| Account | APY | Minimum deposit required | Monthly maintenance fee | Learn More |
|---|---|---|---|---|
|
|
3.76%
UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate. |
N/A | $0 | Open Account |
|
Member FDIC |
0.50% - 3.80%
SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus. |
N/A | $0 | Open Account |
CDs vs. High-Yield Savings Accounts
Below is a side-by-side comparison of the benefits that CDs and high-yield savings accounts offer.
| Certificates of Deposit | High-Yield Savings Accounts |
|---|---|
|
Penalties for early withdrawals |
Traditionally up to 6 withdrawals per month |
|
Some of the highest interest rates available |
Typically higher-than average interest rates |
|
Generally no monthly maintenance fees |
May have monthly maintenance fees |
|
Often FDIC insured up to $250,000 |
Often FDIC insured up to $250,000 |
|
Typically fixed rates |
Rates may fluctuate with the market |
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How to Choose Between a CD and High-Yield Savings Account
Both CDs and high-yield savings accounts can offer a lot of value as savings vehicles to help you reach your financial goals.
Consider opening a CD if you:
- Are working toward long-term savings goals and know you won't need those funds for several months or years. You can also consider no-penalty CDs if you want flexibility to withdraw funds early, if needed, though APYs may be less generous.
- Want to minimize investment risk and avoid the volatility of the stock market. Consider discussing your options with a professional financial advisor first.
Consider opening a high-yield savings account if you:
- Need the flexibility to access your funds more frequently.
- Are working toward short-term savings goals and don't want to lock away your money for an extended period of time.
- Don't want to commit to a fixed interest rate because you're concerned about losing out on potential earnings if interest rates rise.
Bottom Line
Depending on the goals you're trying to accomplish, either a CD or a high-yield savings account might be a better fit than the other. Then again, no one lives in a vacuum. You could be trying to reach multiple financial goals at once. If that's the case, you might benefit from opening both types of accounts.
Michelle Lambright Black
Michelle Black is founder of CreditWriter.com and HerCreditMatters.com. Michelle is a leading credit card journalist with over a decade and a half of experience in the financial industry. She’s an expert on credit reporting, credit scoring, identity theft, budgeting, small business, and debt eradication. Michelle is also a certified credit expert witness and personal finance writer.
