CD vs. high-yield savings account: Which is better to open this August?

Core Impact Points

• CDs offer fixed interest rates, providing predictability and security, but require locking in funds for a set period.
• High-yield savings accounts offer flexibility and the potential for higher interest rates, but rates may fluctuate and access to funds may be restricted.
• The Federal Reserve's rate hike decision in September may impact the interest rates offered by high-yield savings accounts, making them a more attractive option.
• Savers should consider their financial goals and needs before deciding between a CD and a high-yield savings account.
• Opening both accounts may be a viable option for savers who want to balance predictability and flexibility.
• Online marketplaces can help savers compare rates and terms for CDs and high-yield savings accounts, making it easier to make an informed decision.