Products like high-yield savings accounts and certificates of deposit (CDs) have been a boon for savers in recent years, offering higher-than-average rates and, in turn, the opportunity to earn solid returns on the money you’ve put into your savings. But while CD and high-yield savings accounts still offer big returns, especially compared to traditional savings accounts, rates on these interest-bearing accounts have also started declining over the last year or so. While that doesn’t necessarily mean these interest-earning accounts are no longer a valuable option for your savings funds, it does mean that you should do your homework on which account option makes more sense for your money. That, in turn, begs the question: Which option is likely to be the better one, a CD or a high-yield savings account, when the new year rolls around?Compare your top CD account options online now.CD accounts vs. high-yield savings accounts: Which will be better for 2026?Are you considering where to store your savings in the new year? Here’s when a CD account or high-yield savings account might be the right move.Why a CD account could be better in 2026CDs tend to be the top choice if you simply want to maximize your interest earnings in 2026, experts say. For one, they usually have high interest rates, whether you’re opting for an account with a fully digital bank or opening a CD with a credit union that has a national presence. CD rates are typically high compared to traditional savings options “because the money is locked in these products for a longer period of time,” says Aaron Ulrich, a financial advisor and owner of Integra Financial Planning.This lock-in effect is another advantage of CDs, especially when rates are falling, as they have recently. “The perk of a CD started now is that as rates drop, you can get locked in to today’s rate, and that rate will be guaranteed for the term of the CD,” Ulrich says. “If rates do come down, you’ll still be locked in at the higher rate.”Experts generally expect interest rates on all savings products to fall throughout 2026, albeit at a slow, gradual rate. If that expectation comes to fruition, having your funds locked in a CD at today’s rates could equate to a lot more interest than what you’d earn at lower rates.”We’re expecting rates to ease a bit in 2026,” says Chuck Bowman, retail and business banking division manager at Amegy Bank. “The Fed has already started trimming rates, and a lot of forecasts point to that trend continuing. When the Fed moves, banks typically follow.”Find out how much you could earn at today’s CD rates.Why a high-yield savings account could be better in 2026One of the biggest advantages of a high-yield savings account is that you can withdraw funds whenever needed, offering you a flexible but high-earning option to consider. With most CDs, you’ll pay a penalty for pulling out cash before its maturity date. That makes them the more restrictive option, especially if you anticipate needing access to your savings in the near future.”The benefit of a high-yield savings account is the flexibility it gives you,” says Todd Gunderson, CEO of Credit Union 1. “You will earn competitive dividends on your balance, but you can also access that money if you need to. That can be a benefit in uncertain economic times.”High-yield savings accounts also offer significantly higher rates than many other types of accounts, so if you want an accessible account on hand just in case, there’s generally no better option to consider. Right now, for example, many high-yield savings accounts offer rates above 4%. The average regular savings account comes with an APY of just 0.40%, though, while the average interest-bearing checking account offers a rate of 0.07%.”High-yield savings accounts will still deliver significantly more attractive returns compared to traditional savings accounts in 2026,” says A’jha Tucker, product manager of consumer deposits at Georgia’s Own Credit Union. “They’re a strong option for those who prioritize flexibility.”The bottom lineThe Federal Reserve is set to meet in December, and according to CME Group’s FedWatch Tool, there’s currently about a 40% chance of another rate cut at that meeting. That would result in lower rates on savings products, too. If you’re considering opening a new savings account or CD, that means time is of the essence. So, start comparing banks and products now, and maximize your interest when you can, before rates have a chance to fall further.
