Interest Rates on $50,000 CDs and High-Yield Savings Accounts Compared

Interest rates available on certificates of deposit and high-yield savings accounts produce similar but not identical returns on a $50,000 deposit over the next year.

A certificate of deposit locks funds for a fixed term at a fixed rate. A high-yield savings account allows withdrawals at any time while interest rates can change. Current rates mean the two products yield nearly the same total interest on a $50,000 balance within twelve months.

Early withdrawal penalties on CDs can reduce net returns if funds are needed before term ends. High-yield savings accounts carry no early withdrawal penalties. Federal deposit insurance covers both account types up to $250,000 per depositor per institution.