$10,000 short-term CD vs. $10,000 high-yield savings account: Which earns more interest now?

A certificate of deposit (CD) account has a higher interest rate than many alternatives, making it an attractive option for savers looking to earn more interest on their money. But it comes with a well-known caveat: Savers will need to leave their money untouched in the account for the full term to earn that interest. Withdraw it prematurely, and it will result in the account being hit with a costly early withdrawal penalty. But leaving the money in the account can be daunting when CD terms last more than a year.

Short-term CDs, however, mature in under 12 months. And, contrary to previous economic periods, rates here are often higher than they are on long-term counterparts, making them a viable option for those savers who don’t want to forego access to their funds long-term but still want to earn a high rate. This makes it a particularly smart place to park $10,000 or more right now. 

But with similarly high rates available with high-yield savings accounts – and the flexibility those accounts offer that CD accounts do not – it behooves savers to calculate the potential interest earnings for both to determine which makes more sense for their five-figure deposit now. Below, we’ll do the math for both account types if opened now, at the end of June 2025.

See how much more interest you could be earning with a high-rate CD here.

$10,000 short-term CD vs. $10,000 high-yield savings account: Which earns more interest now?

Short-term CDs are accounts with maturity dates under one year (think three months, six months or nine months). Rates change based on each term, while the top high-yield savings account rates are approximately the same right now. That said, high-yield savings account rates are variable and subject to change over time, especially over extended periods, meaning they’re unlikely to be the same in nine months the same way a 9-month CD rate will be. 

Here’s what the three short-term CDs would earn and what the high-yield savings account would earn during the same period, assuming the high-yield savings account rate remains constant:

• $10,000 3-month CD at 4.40%: $108.23 for a total of $10,108.23 
• $10,000 high-yield savings account at 4.30% after three months: $105.81 for a total of $10,105.81
• Difference between the two accounts: The 3-month CD earns $3.23 more

• $10,000 6-month CD at 4.51%: $223.01 for a total of $10,223.01
• $10,000 high-yield savings account at 4.30% after six months: $217.63 for a total of $10,217.63
• Difference between the two accounts: The 6-month CD earns $5.38 more

• $10,000 9-month CD at 4.26%: $317.83 for a total of $10,317.83
• $10,000 high-yield savings account at 4.30% after nine months: $328.22 for a total of $10,328.22
• Difference between the two accounts: The high-yield savings account earns $10.39 more

So, in two of the three above examples, the CD account earned more while the reverse was true with the 9-month CD. That noted, the interest earnings for either account are approximately the same. To better determine which is more appropriate for their circumstances, then, savers will need to look beyond the interest rate and evaluate the potential for rates to cool in the future. 

If they’re confident that rates will continue to decline, then they may be better served by locking in a high rate with a CD instead, while still readily available. But if they think rates will remain relatively steady, a high-yield savings account may be favorable. And, if they’re unsure, they may be truly best served by depositing $5,000 into each account type now to exploit the benefits of both. 

Explore your CD and high-yield savings account options here and get started.

The bottom line

In some scenarios, a short-term CD is clearly the better savings option while, in others, a high-yield savings account is. But with a $10,000 deposit into either right now, savers will realize approximately the same interest-earnings over time. In other words, if you’re considering either, there’s really no wrong option. Just make sure to keep little to no money in a traditional savings account now. With an average interest rate of 0.38% currently, you’re essentially losing money by not making the switch to a CD or high-yield savings account instead.