If you’ve been tempted by 4.00% and higher certificate of deposit (CD) rates, you’re not the only one. Fixed returns and FDIC insurance make them sound like a solid deal. But before you commit, it’s worth asking: Do you really want to lock up your money right now?
Let’s take a closer look at why a high-yield savings account (HYSA) might be the smarter move for what remains of April 2025 — and how to choose the best one for your needs.
CDs offer value, but are inflexible
While the best CD rates can be found up to 4.65% right now, they come with a big limitation: You lose access to your money for the length of the term.
Need to take it out early? You’ll likely pay a penalty and lose some of the interest you earned.
Our Picks for the Best High-Yield Savings Accounts of 2025
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American Express® High Yield Savings Account Member FDIC. APY 3.70%
Rate info
Member FDIC.
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3.70%
Rate info |
$0 |
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CIT Platinum Savings Member FDIC. APY 4.10% APY for balances of $5,000 or more
Rate info Min. to earn $100 to open account, $5,000+ for max APY
Member FDIC.
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4.10% APY for balances of $5,000 or more
Rate info |
$100 to open account, $5,000+ for max APY |
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Barclays Tiered Savings Member FDIC. APY 4.10%
Rate info
Member FDIC.
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4.10%
Rate info |
$0 |
That might be fine if you’re confident you won’t need the money anytime soon. But most people benefit more from flexibility — especially with the economy in flux.
High-yield savings accounts, on the other hand, are offering comparable rates without the commitment.
Why flexibility is a big deal
Let’s say you have an unexpected expense or you decide to take a spontaneous trip this summer. With a CD, your savings are locked away — and unlocking them can cost you in the form of early withdrawal penalties. With an HYSA, though, you can move your money freely whenever you need it.
That kind of liquidity is especially helpful if you’re saving for short-term goals like a home down payment, a vacation, or building up an emergency fund.
When you don’t know exactly when you’ll need your money, having easy access is just as important as earning interest.
What to look for in a high-yield savings account
Not every HYSA is created equal. Here’s what to check before opening one:
- APY: Look for rates between 3.60% and 4.40%
- Fees: Avoid accounts with monthly maintenance fees or high minimum balance requirements
- Ease of access: Make sure you can manage and transfer your funds online or through a mobile app
- FDIC insurance: Your savings should be protected up to $250,000