CDs vs. high-yield savings accounts: Which is better with inflation rising again?

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April 14, 2026 / 2:00 PM EDT / CBS News
With inflation now at a rate of 3.3%, its highest level in years and more than a full percentage point above the Federal Reserve's target of 2%, millions of Americans find themselves contending with the painful reality of higher costs for longer.

In this landscape, many may also be contemplating the ways in which they can securely protect the money they do have and potentially even grow their principal.

And with an interest rate under 0.40% on a traditional savings account and that rate being variable and subject to change, it's increasingly obvious that keeping your funds in that account type is no longer a viable solution.

Fortunately, there are still viable accounts to consider.

A certificate of deposit (CD) and a high-yield savings account are two.

Both come with elevated interest rates that are multiple times higher than a traditional savings account.

But they don't operate identically, and those differences could be important, especially with inflation on the rise again.

Between a CD and a high-yield savings account, then, which is the better option with inflation increasing?

That's what we'll examine below.

Start by seeing how much interest you could be earning with a top CD account here .

Learn more about your savings account options here .

Your interest goals: Do you want to offset the negative impacts of inflation and even outpace it comfortably with an elevated interest rate?

Then a CD can be the solution.

Not only are rates here higher on some terms than they are with high-yield savings accounts, but they're also fixed in a way that the high-yield savings account rate will not be.

At the same time, earning extra interest on your money may be a "nice to have" but not a necessity, as long as it's still better than what a traditional savings account offers.

In this case, the high-yield savings account could be the better option, as you can maintain your routine of deposits and withdrawals as you've been accustomed to.

Your interpretation of the rate climate: Do you anticipate that today's CD rates will decline later this year, especially if the Fed resumes its interest rate cutting campaign?

If so, it may make sense to lock in a high CD rate now, while you still can.

This will not only allow you to outpace inflation, but it will permit you to keep earning a comfortable return even when rates are lower.

But what if you anticipate higher rates for longer and, potentially, even a rise in interest rates before the end of 2026?

In this case, a high-yield savings account may be preferable as it will position you to exploit additional rate hikes ahead in a way that the CD won't.

And those increases will be especially advantageous should inflation continue to rise in the months to come.

Your interpretation of the rate climate, both now and over the next year, will go a long way toward determining which of these accounts is better for you.