Differences between CDs and high-yield savings accounts CDs and high-yield savings accounts have several differences, such as:Duration CDs are intended to be used for a set duration. A 5-year CD, for example, is meant to be held for five years. At the end of the term, CDs often have...
000 in a CD for 10 years, and inflation rises over those 10 years, the buying power of that $1,000 isn’t what it was at the time of the deposit. CD interest rates increase with inflation because the bank must offer a better return to make its CDs competitive. So, buying a long-...
It is worth checking around rather than just opening an account at your bank. The rates can vary widely. In late 2023, a time of relatively high inflation, rates ranged from 0.03% to above 5%. CD buyers are committing their cash for a period of time, ranging from three months to 10 y...