In today’s volatile economy, finding a safe place for your money that offers a solid return is important. For many savers, the search often leads to two low-risk options: certificates of deposit and high-yield savings accounts.

Both are excellent alternatives to a standard savings account, but they serve different purposes and come with tradeoffs.

This article will examine how each account works and ideal use cases to help you understand which strategy aligns with your financial goals. Table of Contents

Certificate of Deposit

How CDs Work

High-Yield Savings Account

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Certificate of Deposit

A certificate of deposit is a savings account that holds a fixed amount of money for a set period of time. In return for hanging on to your money, the bank pays you a fixed inte

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