High-yield savings accounts (HYSAs) allow account holders to earn significant interest on their balances. But when it comes to stashing away your cash, there's another option to consider.
Certificates of deposit (CDs) operate similarly to HYSA, but the two have crucial differences when it comes to how easy it is to access funds and how guaranteed your interest rate is.
What's a high-yield savings account?
High-yield savings accounts let you earn a much higher return compared to traditional savings accounts. But their rates are still variable, so you can't be sure how much your money will grow.
- Higher APY. The best HYSAs pay above the national average savings rate.
- Deposit and withdraw anytime. There's no lock-up period, which makes it easy to add to your savings or withdraw money when you need it.
- Monthly withdrawal caps. Banks may limit you to six withdrawals, so it's not built for frequent transactions.
- Transfer delays. Most HYSAs are online-only, meaning moving money to a linked account can take a few days rather than being instant.
What to look for in a high-yield savings account
Beyond a high APY, consider any fees associated with the account, as well as minimum deposit and balance requirements and how easy it is to access funds when you need them.
Neither the Marcus by Goldman Sachs High Yield Online Savings account nor the SoFi Checking and Savings account have fees or account minimums. For more options, check out our full list of the best high-yield savings accounts.
Marcus by Goldman Sachs High Yield Online Savings
Annual Percentage Yield (APY)
3.40%
Minimum balance
None
Fees
No monthly maintenance, overdraft or excessive transactions fee
Maximum transactions
No limit to the number of withdrawals or transfers you can make
Checking account
No
ATM card
No
Terms apply.
Pros
- No minimum deposit, no minimum balance and no monthly fees, making it one of the most straightforward savings accounts to open and maintain.
- No limit on withdrawals or transfers, so you can move your money as often as you need without penalty.
- Earns a competitive APY with no conditions or hoops to jump through.
- Easy-to-use mobile app makes managing your savings simple from anywhere.
- Also offers no-fee personal loans through Marcus, a useful perk if you ever need to borrow.
Cons
- Higher APYs are available elsewhere, so it may not be the top pick if maximizing your rate is the priority.
- No checking account option, so you’ll need a separate account for everyday spending.
- No ATM access or debit card, making it best suited as a dedicated savings account paired with another bank.
- Earn a cash welcome bonus just for setting up direct deposit, giving you a head start on your savings goals.
- Unlock a competitive APY on your savings with direct deposit, so your money works harder without any extra effort.
- No minimum balance or monthly fees means you keep more of what you earn, regardless of your account balance.
- Get your paycheck deposited up to 2 days early with direct deposit, so you’re never waiting on funds you’ve already earned.
- Roundups automatically save your spare change with every purchase, and Vaults let you organize savings toward specific goals.
- Comes with a checking account, ATM access and no foreign transaction fees
- FDIC insured up to $3 million through the SoFi Insured Deposit Program,* offering far more protection than the standard $250,000 limit.
- Savings APY drops significantly without direct deposit, so you’ll earn less if you don’t use it as your primary bank.
- Out-of-network ATM fees aren’t reimbursed, which could add up if you frequently use cash.
- No physical branches, so customer support is entirely online or by phone.
What's a CD?
CDs are another type of deposit account, offering yields competitive to those of high-yield savings accounts. The big difference is that money deposited in a standard CD is locked up for a specific amount of time, typically from three months to five years (there are shorter and longer terms, however).
Withdrawing money before the CD reaches maturity usually means incurring a stiff penalty that's usually a chunk of the interest you've earned.
Other differences with standard CDs are that their rates are fixed and you generally can't make additional contributions once you've opened the account until the CD matures.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
From 3.80% to 4.50% APY
From 6 months to 5 years
Bread Savings™ (formerly Comenity Direct) is a product of Comenity Capital Bank, a Member FDIC.
From 3.90% to 4.35% APY
From 6 months to 6 years
Marcus by Goldman Sachs® is a brand of Goldman Sachs Bank USA, a Member FDIC.
- Competitive interest rates. CDs often pay a similar or higher rate than HYSAs, especially for longer terms.
- Fixed interest rate. Your rate is locked in when you open the account, so it won't drop — even if rates decline.
- Early withdrawal penalty. Pulling money out before CD matures usually costs you some or all of the interest earned.
- Can't make additional deposits. Once a standard CD is funded, you can't add more money until it matures.
What to look for in a CD
Similar to choosing an HYSA, picking the right CD will largely depend on the APY it offers. But you should also consider the term length to make sure you're comfortable locking up your money for that long.
Both Synchrony Bank and Bread Savings™ have competitive rates in a wide range of terms. See our full list of the best CD accounts for more options.
Bread Savings™ CDs
Annual Percentage Yield (APY)
From 3.80% to 4.35% APY
Terms
6 months to 5 years
Minimum deposit
$1,500
Early withdrawal penalty
For terms of less than 12 months, the penalty is 90 days of simple interest. For terms of 12 months to three years, the penalty is 180 days of simple interest. For terms of four years or longer, the penalty is 365 days of simple interest.
Terms apply.
Pros
- Above-average APYs
- Wide range of terms
Cons
- $1,500 minimum deposit
- Doesn't offer no-penalty or bump-up CDs
- No physical branches
Synchrony Bank CDs
Annual Percentage Yield (APY)
From 0.25% to 4.35% APY
Terms
From 3 months to 60 months
Minimum balance
None
Monthly fee
None
Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there's no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.
Terms apply.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
How to choose between a high-yield savings account and a CD
Opening a CD can be a good idea if you're saving up for a large purchase and don't expect to need the funds for several months or years. You can count on a predictable return and no risk exposure, and the early withdrawal penalty may even keep you from spending funds you're trying to save up.
But that penalty means a high-yield savings account is a better option for emergency funds. Some even come with access to an ATM/debit card.
A CD may be the wiser option if you think rates are going to drop soon, but a HYSA will reward you if rates go up. For many savers, it's not an either-or choice: You might keep your emergency fund and other money you may need soon in a high-yield savings account, while putting money you won't need for several months or years into CDs.
Think about your timeline, your need to access that money and the outlook for interest rates before deciding where to keep your savings.
FAQs
Is a high-yield savings account better than a CD?
It depends on your financial goals: If you want to earn interest while still having easy access to your money, an HYSA is the better option. But if you want to lock in a healthy interest rate and can leave your money untouched for months (or even years), a CD may make more sense.
Which pays more interest: CDs or high-yield savings account?
The top CDs compete with the APY you can get from a high-yield savings account, but may require a large opening deposit or a long term. And while a HYSA may tempt you with robust return, that APY might drop over the next few months. Decide which savings product is right for you, rather than just comparing APYs.
Can I withdraw money early from a CD?
While standard CDs come with stiff early withdrawal penalties, there are penalty-free CDs that allow you to take out your funds before they reach maturity. Most require you to withdraw the entire balance and close the account, although some, like BTG Pactual Bank, allow partial withdrawals.
Can you make withdrawals from a savings account?
Some savings accounts have a limit of six withdrawals per statement cycle but other than that, you can withdraw your money from a savings account whenever you need it.
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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% 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 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit 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 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC's regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 4.00% Annual Percentage Yield (APY) on one SoFi Savings account with a 0.90% APY Boost (added to the 3.10% APY as of 5/28/26) for up to 6 months. Open your first SoFi Checking and Savings account and receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 12/31/26. Rates are variable, subject to change. Terms apply at sofi.com/banking#4. SoFi Bank, N.A. Member FDIC. *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
