Forget CDs in April 2025, Even With Rates Over 4%. Here's Where to Put Your Money Instead

If you've been eyeing those 4.00% certificate of deposit (CD) rates lately, you're not alone. They might look like a safe bet -- but before you lock up your money, it's worth asking: Is this really the best move for your cash right now?

Let's break down why high-yield savings accounts (HYSAs) might be a better home for your short-term savings -- and how to pick one that works for you.

CDs aren't as great as they seem

CDs come with a big catch: Once you deposit your money, it's tied up for the entire term. If you pull your cash out early, you could lose interest or be forced to pay a penalty.

As of April 2025, many CDs are offering rates over 4.00%. But right now, you can get a similar or even better return from a high-yield savings account without giving up access to your money.

Plus, the interest on HYSAs is typically compounded daily and paid monthly, which helps your money grow faster.

The key difference, however, is that there's no lock-in period. With an HYSA, you can move your money around if something better comes along or if you need it for an emergency. That's a big advantage over CDs.

Why liquidity matters

Let's say your car needs repairs next month or you find a great deal on a summer vacation. With a CD, you're stuck unless you're willing to eat the penalty. With an HYSA, you can access your money whenever you want.

That kind of flexibility matters, especially for short-term savings goals -- like building an emergency fund or putting aside cash for a future down payment.

If your money needs to be available at a moment's notice, an HYSA is the way to go.

How to pick the right high-yield savings account

Not all high-yield savings accounts are created equal. Here's what to look for:

• APY: Aim for somewhere between 3.60% and 4.40% right now
• Fees: The best accounts have no monthly maintenance fees or minimum balance requirements
• Accessibility: Make sure you can transfer funds easily through a mobile app or online
• FDIC insurance: Your money should be protected up to $250,000

Get the flexibility you deserve today

CDs might sound appealing with their fixed rates, but they're just not flexible enough for most people. With interest rates still high and an uncertain economic climate, a high-yield savings account gives you the best of both worlds -- strong returns and easy access to your money.

Skip the CD for now and give your savings the freedom to grow with an HYSA.