CD vs. Savings: Which Earns More Interest in 2025?
CDs might offer a higher interest rate than savings accounts, but they do come with fine print that you should be aware of before deciding to put your money in one.
This article was subjected to a comprehensive fact-checking process. Our professional fact-checkers verify article information against primary sources, reputable publishers, and experts in the field.
If you have money socked away in savings, you may be wondering whether it's a good idea to move it to a certificate of deposit account, where you might get a higher annual percentage yield. This post explores how certificates of deposit (CDs) work, how savings accounts work, and how interest on both accounts compares.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
4.30%Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Minimum Balance for APY
$0
Bonus Offer
Up to $300New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found athttp://www.sofi.com/legal/banking-rate-sheet.
Why We Like It
Earn a $50 or $300 bonus and up to 4.30% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at<a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p> on your money with eligible direct deposit
Limited-Time Offer: +0.70% Boost on Savings APY for 6 months on new accounts with eligible Direct Deposit. Terms Apply.2 <p>Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>
No account, overdraft, or monthly fees3 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Get your paycheck up to two days early with direct deposit4 <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
Access additional FDIC insurance up to $3 million5 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
CDs are accounts that lock you into a fixed interest rate for a fixed term, so you get a guaranteed return. The big draw of CDs is that the APY may be higher than you might get with a savings account. Typically, you make one lump-sum deposit into a CD. After the CD matures, you could enter a new term or withdraw the cash.
APYs on CDs can vary from one institution to the next. For example, brick-and-mortar banks might offer less than 0.05% on CDs, whereas some online banks give 0.50% or more. Generally, the longer CD term you choose, the higher the APY is, but that doesn't mean you should dump all your money into a long-term CD.
If you end up taking out cash early, you could get hit with an early withdrawal penalty, which could equal a certain number of days in interest. For example, if you withdraw early from a one-year CD, you could get charged 120 days of interest. The good news is that CDs offer flexibility, so you may be able to find one that works for you. Terms available may range from one to 60 months or more.
If you open a CD at a Federal Deposit Insurance Corp.-insured bank or National Credit Union Association-insured credit union, up to $250,000 of your money is guaranteed should the financial institution fail — this makes CDs a highly secure way to invest money. Before putting money into a CD, it's essential to check that an institution has this insurance. The best banks will make this coverage clear to you on the website.
What's a CD good for? A CD account can be a good place to put excess savings you don't want to invest in the market. If you have money saved up for a more near-term goal — such as buying your child their first car next year — a high-interest CD could be a safe place to put the money for a set period of time until you're ready to use it.
How does a savings account work?
A savings account is a type of deposit account that offers greater access to your cash than a CD. You can deposit and withdraw funds regularly from a savings account; however, you may be limited to six electronic transfers per month because of Federal Reserve Board Regulation D.
The trade-off to the flexibility of savings accounts is that the APY might be lower than CDs. Also, savings account rates are typically variable, which means they can go up or down after you open the account. As with CDs, if you open a savings account at a credit union or bank that's NCUA- or FDIC-insured, your money is guaranteed up to $250,000.
What's a savings account good for? A savings account is a place to store everyday savings that you might need to dip into to cover a bill or an unexpected expense. The general rule of thumb is to have three to six months' worth of expenses stashed in case you lose a job or face a loss in income, and a savings account may be a good place to put this emergency fund.
Besides saving for emergencies, you can also use multiple savings accounts to save incrementally for different financial goals. Planning a wedding, saving for a down payment, or wanting to take a vacation this summer? You could create separate savings accounts to save for each life event.
CD vs. savings account: A quick comparison
CD account
Savings account
Interest rates
Typically fixed rates and can vary depending on the CD term and the financial institution
Often variable rates and can vary depending on where you open an account
Liquidity
Must wait to withdraw funds until the end of the CD term
Terms may range from three months to five years or more
Early withdrawals usually trigger an early withdrawal penalty
Can make ongoing deposits and withdrawals
There may be a fee if you make more than six electronic withdrawals in a month
Insurance
Up to $250,000 of your money is guaranteed at NCUA- and FDIC-insured financial institutions
Up to $250,000 of your money is guaranteed at NCUA- and FDIC-insured financial institutions
Minimum deposit
Some CD accounts may have no minimum deposit requirement, while others may require $50, $500, $1,500, or more to open
Minimum balance requirements vary but may be as low as $0
Who it's best for
Best for savers who have excess cash they want to stash at a higher interest rate
Best for savers putting away money for emergencies or surprise bills
CD vs. savings: Which earns more interest?
As mentioned, interest rates can vary from one financial institution to the next, but CDs — especially those with longer terms — tend to offer a higher APY than savings accounts. Online CDs specifically may offer a much higher rate than savings accounts at brick-and-mortar banks. The best way to find the highest rates and most advantageous terms on a savings account or CD account is to shop around with multiple banks and credit unions.
If you are interested in opening a CD because of the higher rates but are wary of locking your money into a fixed term, CD laddering is a strategy to consider. CD laddering is when you break up your cash into multiple CDs with different maturity dates. This way, cash becomes available in staggering time frames, and you get access to funds that you can withdraw without penalty.
For example, you could set up CDs to mature every year. Here's how this might play out if you have $10,000 saved:
One-year CD with $2,500 at .55%
Two-year CD with $2,500 at .55%
Three-year CD with $2,500 at .55%
Four-year CD with $2,500 at .55%
With this strategy, $2,500 (plus interest earned) would come available each year.
Another type of account you could use instead of CDs is a high-yield savings account. These accounts are designed to offer a higher APY than traditional savings accounts. FDIC data shows that the national rate for a savings account is currently sitting at just 0.40% (as of 11/17/25); meanwhile, Axos Bank offers up to 0.61% (as of 10/06/25) APY.6 <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p>
GreenFi is an example of a financial company that offers up to 3.00% (05/02/2025) APY on its GreenFi Plus account, and funds are held at FDIC-insured partners. If that sounds like a good option for you, this GreenFi review shares more information about the company and its accounts.
4.7
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
Openbank High Yield Savings - 4.20% APY7 <p>Interest Rates and Annual Percentage Yields (APYs) are accurate as of 12:01 AM ET September 23, 2025. The products and rates we offer may vary between locations, are available in select markets only, and are subject to change without notice. Rate for this product will be based on the residential ZIP code entered when account is opened within online application process. This is a variable-rate account and the rate applicable may change at our discretion any time without notice. A minimum deposit of $500 is required to open a Openbank High Yield Savings account. Personal accounts only.</p>
<p>Openbank is a division of Santander Bank, N.A. Member FDIC. There is a maximum of $250,000 of deposit insurance from the FDIC per depositor for each category of account ownership. Visit FDIC.gov for details. Deposits at Santander Bank, N.A., and Openbank are combined for the purposes of calculating FDIC insurance limits (FDIC Cert #29950) and are not separately insured.</p>
Earn 10x the national savings average for Savings deposit products as published on FDIC.gov.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
2025 award winnerBest Checking and Savings Combo
SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit
Limited-Time Offer: Earn a $50 or $300 bonus and up to 4.30% APY on Savings (3.60% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at<a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.2 <p>Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p> FDIC Insured.5 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
Use Cash App As Your All-in-One Financial Services Platform
Bank8 <p>Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Savings provided by Cash App, a Block, Inc. brand.</p><p class="">Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Direct Deposit provided by Cash App, a Block, Inc. brand.</p> without all the fees—save, send, and spend your money the way you want.9 <p class="">Your balance is eligible for FDIC pass-through insurance through our Program Banks Wells Fargo Bank, N.A. and/or Sutton Bank, Members FDIC for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each Program Bank above, if certain conditions are met. Cash App is a financial services platform, and not an FDIC-insured bank. Prepaid debit cards issued by Sutton Bank, Member FDIC. See <a href="https://cash.app/legal/us/en-us/card-agreement">terms and conditions</a>. </p> Get paid up to 2 days early – up to 2 days earlier than most banks10 <p>Your first deposit may take longer depending on your employer.</p>
Whether a CD or savings account will be better for your savings goals depends on your situation. CDs might offer a higher rate of return, so opening one could be a better option if your focus is earning as much interest as possible while money is sitting in an account.
However, with a CD, your money is locked away for a set amount of time, and you might be charged penalties if you take money out early. For this reason, a savings account could be the better option to store savings you might need to dip into for new tires or an unexpected tax bill.
How do savings accounts differ from CD accounts?
Savings accounts are bank accounts where you can regularly make deposits and withdrawals. These accounts may come attached to a checking account, which makes transfers easy. The drawback to savings accounts is they tend to have a low APY, though certain banks do offer high-yield savings accounts.
CD accounts may offer a higher APY than savings accounts because you agree to leave your money in the account for a preset term that could range from six months to five years or more. Withdrawing funds before the CD matures could result in early withdrawal penalties.
Are CDs worth it?
CDs may or may not be worthwhile, depending on how much money you have to deposit, the length of the term you're able to sign up for, and the CD rates.
Opening up a short-term CD of six or fewer months may not be worthwhile because the APY could be comparable to what you might get with a savings account. However, an advantage of going with a CD account, even if the rates are similar, is that the fixed term could force you not to spend money you might spend otherwise.
If you have the flexibility to go with a longer term, a CD could provide a greater upside because interest rates tend to get higher the longer the CD term you choose. Keep in mind that CDs may also have deposit minimums, so you'll need to consider what you have available to comfortably deposit into a CD before going CD shopping.
The bottom line
When choosing where to put your money, there's no lack of options. If you're looking to earn a higher APY on excess cash that's currently in savings, opening up a CD could be the way to go.
However, a savings account may be the better choice for the money you might need to use on a rainy day. The APY for a savings account may be less than the APY on a CD account, but you would not have to worry about paying the price for making early withdrawals.
If you're in the market for a new savings account, FinanceBuzz's roundup of the best savings accounts can help you find your next one.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
2025 award winnerBest Checking and Savings Combo
High APY of up to 4.30% on Savings (3.60% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at<a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.2 <p>Earn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>
Paycheck access up to 2 days early with direct deposit4 <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
No monthly maintenance or overdraft fees3 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Streamlined savings and savings goals with Vaults
Access to a large ATM network11 <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.</p>
Advertiser and Editorial Disclosures
Advertiser Disclosure
FinanceBuzz is an independent, advertising-supported website. Some or all of the offers that appear on this page are from third party advertisers from which FinanceBuzz receives compensation. For example, we may receive compensation when you click on a link, when an application is approved, or when an account is opened. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear).
FinanceBuzz does not include all financial or credit offers that might be available to consumers nor do we include all companies or all available products. Information, including rates and fees, is accurate as of the publishing date and has not been provided or endorsed by the advertiser.
The credit card offers that appear on this site are from companies from which FinanceBuzz receives compensation such as banks or CardRatings.com.
Editorial Policy
The FinanceBuzz editorial team strives to provide accurate, in-depth information and reviews to help you, our reader, make financial decisions with confidence. Here's what you can expect from us:
FinanceBuzz makes money when you click the links on our site to some of the products and offers that we mention. These partnerships do not influence our opinions or recommendations.
FinanceBuzz reviews and rates products on a variety of quantitative and qualitative criteria. Whenever possible we test each product and include our honest, firsthand experience using it. Read more about how we rate products.
Partners are not able to review or request changes to our content except for compliance reasons. Financial products are highly regulated so we work closely with partners to make sure the information we have on our site is accurate and includes any required legal language and disclaimers.
We aim to make sure everything on our site is up-to-date and accurate as of the publishing date, but we cannot guarantee we haven't missed something. It's your responsibility to double-check all information before making any financial decision. If you spot something that looks wrong, please let us know.
Thanks for subscribing!
Please check your email to confirm your subscription.
/images/2018/01/23/navina-side-hustle-mid_MPfEDfV.jpg)
/images/2019/12/06/smart_strategies_to_save_money_on_car_insurance.jpg)
/images/2021/05/27/woman-doing-banking-online.jpeg)
/authors/taylor_medine_updated.png)
/authors/jess_ullrich.jpg)
/images/2024/07/31/sofi_logo_-_cropped.png){kind=logo}
/images/2025/11/10/1137b0a2-f997-4c0c-b539-a36ba793a594.png)
/images/2024/07/31/sofi_logo_-_cropped.png){kind=logo}
/images/2025/06/19/cash_app_logo_rO38hx9.png){kind=logo}
/images/2024/07/31/sofi_logo_-_cropped.png){kind=logo}
