CD’s and High-yield Accounts are both safe investments, but depending on your investment style you may choose one over another. In this post your going to learn about the differences between CD’s and High-yield Accounts, but before that what is a CD?


A CD is a Certificate of Deposit held by banks, credit unions, and other similar institutions. A certificate of deposit is a timed account which means it matures or you can take out the money only at a specific time. Which can be one month to a year or more depending on the contract of the CD. With a CD you can get a fixed interest rate, which makes it one of the most safest investments because unlike stocks the returns don’t fluctuate.

If you know you dip into your savings account a lot. I would suggest getting a certificate of deposit, mainly because your money will be safe as well as hard to get to. That way you can save more money for larger purchases or bigger investments in the future.


High-Yield accounts are similar to certificate of deposits when it comes to choosing safe investments. All though, the interest rates of a high-yield account are variable (they change.) Unlike certificate of deposits, high-yield accounts are liquid. Which means you can take out the money at any time.

This investment is best for an individual who knows how to save large sums of money, but still needs access to their money for business or larger investments.

I personally use a high-yield savings account so I can still get a return on my money as it sits in my account. I use the money in my high-yield account for other investment opportunities or emergency expenses, such as when my car breaks down. At the end of the day your spending habits should let you know if you should get a cd or high-yield account.

Know yourself and always remember “saving is important.”