{"id":15118,"date":"2024-10-21T09:25:00","date_gmt":"2024-10-21T15:25:00","guid":{"rendered":"https:\/\/www.discover.com\/online-banking\/banking-topics\/?p=15118"},"modified":"2025-03-14T09:56:51","modified_gmt":"2025-03-14T15:56:51","slug":"certificate-of-deposit-vs-savings-account","status":"publish","type":"post","link":"https:\/\/www.discover.com\/online-banking\/banking-topics\/certificate-of-deposit-vs-savings-account\/","title":{"rendered":"Certificate of deposit vs. savings account: Which is right for you?"},"content":{"rendered":"\n<script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [{\n    \"@type\": \"Question\",\n    \"name\": \"What is the interest rate on a CD?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"A CD pays a set interest rate when you agree to leave your money with a financial institution for a certain term. CD rates can vary depending on your financial institution, the term of the CD, and the interest rate environment. Typically, if you are willing to put more money into a CD or buy one with a longer term, you can expect a higher rate of interest, Bessette says.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"] How long does a certificate of deposit last?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"CDs aren\u2019t designed for money you may need today or even this week. Typically, CD terms range from one month up to five years. Some financial institutions offer even longer CDs, with terms up to 10 years.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Are certificates of deposit FDIC insured?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Bessette points out that one of the big pluses for savers who use CDs is security. The rate of return is set, and the CDs offered by banks and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 each. FDIC insurance means that in the unlikely event that the bank or credit union runs into problems and can\u2019t return your money or pay the interest, the government will step in to protect your investment. (pp电子官网 is an FDIC member.)\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What are some limitations of CDs?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"While there are many benefits of CDs, they do have limits. Notably, after you buy a CD, you are committed for the term of the product. If you pull your money out of a CD before the end of the term, you will likely be charged a penalty. That\u2019s why Bessette thinks CDs aren\u2019t great places to store money you may need for day-to-day expenses. If you\u2019re looking for accounts with more flexibility, explore money market accounts and checking accounts, which offer easier access to your money. \n\nCDs can also require minimum deposits. The minimum is $2,500 for a pp电子官网 CD, but that can vary across financial institutions. If you have less than the required CD minimum, you might want to consider a savings account instead, Bessette says.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What are the benefits of a savings account?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Why open a savings account? There are plenty of good reasons. If you have money you don\u2019t need for day-to-day expenses, a savings account offers the option to earn interest on your deposits. Bessette says that the big benefit of savings accounts compared to CDs is that savings accounts have no set term, so you can access your money if you need it. Unlike when it\u2019s in the stock market, your money can\u2019t plummet in value when it\u2019s in a savings account\u2014making a savings account a very low-risk place to park your cash.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"Are online savings accounts FDIC insured?\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Online savings accounts offered by banks and credit unions are protected by FDIC insurance. As with CDs, the money in your account is protected even if something should happen to the financial company that holds the account. As a result, savings accounts are one of the safest places to keep your money.\"\n    }\n  },{\n    \"@type\": \"Question\",\n    \"name\": \"What are the limitations of savings accounts\",\n    \"acceptedAnswer\": {\n      \"@type\": \"Answer\",\n      \"text\": \"Savings accounts offer interest, safety, and convenience, but Bessette says they aren\u2019t the right solution for all your money. For one thing, these accounts may not come with check writing or debit cards, which means they\u2019re probably not practical for day-to-day spending needs. The interest rate changes over time, and you don\u2019t know when savings account interest rates will go up or down, so they can be less predictable than a CD.\"\n    }\n  }]\n}\n<\/script>\n\n\n\n<p>When it comes to saving money, experts can all agree on one thing: It\u2019s a good idea. For one, savers are better prepared to handle emergencies and more likely to achieve long-term financial goals. Plus, taking steps toward financial security and long-term goals can reduce stress\u2014and who couldn\u2019t use some better sleep at night?&nbsp;<\/p>\n\n\n\n<p>Once you decide to save, you have to choose where to put your money. For long-term goals like retirement, you might explore opening a <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/traditional-ira-vs-roth-ira\/\" target=\"_blank\" rel=\"noreferrer noopener\">Traditional or Roth IRA<\/a>, which you would ideally not tap into until you retire. But what about money you might need sooner? Two savings options to consider are certificates of deposit (CDs) and savings accounts.&nbsp;<\/p>\n\n\n\n<p>\u201cSavings accounts and CDs both offer a safe place for you to put your money where it can earn interest,\u201d says Chanelle Bessette, personal finance writer. (That safety is thanks to FDIC insurance, which protects depositors of FDIC-insured banks up to $250,000 per depositor, per insured bank, for each account ownership category.) But what are the differences between CDs and savings accounts?&nbsp;<\/p>\n\n\n\n<p>\u201cThe main difference between the two is that savings accounts allow you to access your money at any time, but CDs are typically locked up for a term length, unless you want to pay a penalty.\u201d<\/p>\n\n\n\n<p>There are more distinctions between these options as well\u2014plus some considerations you\u2019ll want to keep in mind as you weigh the benefits of certificates of deposit vs. savings accounts.<\/p>\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15191\" src=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556.jpeg\" alt=\"Two women and a man riding in a car, smiling, with trees in the background.\" width=\"2560\" height=\"1049\" srcset=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556.jpeg 2560w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556-300x123.jpeg 300w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556-780x320.jpeg 780w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556-768x315.jpeg 768w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556-1536x629.jpeg 1536w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_1-InArticle-scaled-e1679060072556-2048x839.jpeg 2048w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/p>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-certificates-of-deposit\">Certificates of deposit<\/h2>\n\n\n\n<p>CDs offer some clear benefits, including interest, security, and predictability. Here\u2019s <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-cds-work\/\" target=\"_blank\" rel=\"noreferrer noopener\">how CDs work<\/a>: When you open a CD, the bank or credit union offers a guaranteed return (\u201cthe rate\u201d), and in exchange, you agree not to withdraw your money for a certain amount of time (\u201cthe term\u201d). Let\u2019s look at some of the key questions about CDs, including, \u201cHow long does a certificate of deposit last?\u201d and \u201cAre certificates of deposit FDIC-insured?\u201d<\/p>\n\n\n\n<SCRIPT language='JavaScript1.1' SRC=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N7285.7011.DISCOVERFINANCIALSERV\/B28659512.347292542;dc_trk_aid=538807643;dc_trk_cid=178807054;ord=1744459086;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=?\"><\/SCRIPT><a class=\"promo promo--cd-2 promo--animated\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N7285.7011.DISCOVERFINANCIALSERV\/B28659512.347292542;dc_trk_aid=538807643;dc_trk_cid=178807054;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;ltd=\" data-promo=\"cd-2\" role=\u201dcomplementary\u201d>\r\n  <div class=\"promo__content\">\r\n    <img loading=\"lazy\" decoding=\"async\" class=\"promo__logo\" src=\"\/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-light.webp\" srcset=\"\/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-light@2x.webp 2x, \/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-light@3x.webp 3x\" alt=\"pp电子官网 logo\" width=\"100\" height=\"19\">\r\n    <div class=\"promo__text\">Choose your term, lock in your rate, and watch your CD grow<\/div>\r\n    <div class=\"promo__learn-more-wrapper\">\r\n      <span class=\"promo__learn-more\">\r\n        <svg class=\"promo__learn-more-icon icon\" width=\"21\" height=\"21\" viewBox=\"0 0 21 21\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\r\n          <defs>\r\n            <clipPath id=\"uieof68gla\">\r\n              <path d=\"M293 0v270H0V0h293z\"\/>\r\n            <\/clipPath>\r\n            <clipPath id=\"vyo2wmd5ob\">\r\n              <path d=\"M10.5 0C16.299 0 21 4.701 21 10.5S16.299 21 10.5 21 0 16.299 0 10.5 4.701 0 10.5 0z\"\/>\r\n            <\/clipPath>\r\n            <clipPath id=\"utu01tagqc\">\r\n              <path d=\"M1.091.147 1.15.2l5.267 5.345-5.18 5.255a.666.666 0 0 1-.952 0 .702.702 0 0 1-.043-.928l.044-.049L4.5 5.545.198 1.177a.7.7 0 0 1-.085-.87L.154.25.198.2A.665.665 0 0 1 1.09.147z\"\/>\r\n            <\/clipPath>\r\n          <\/defs>\r\n          <g clip-path=\"url(#uieof68gla)\" transform=\"translate(-23 -149)\">\r\n            <g clip-path=\"url(#vyo2wmd5ob)\" transform=\"translate(23 149)\">\r\n              <path fill=\"#EC6B29\" d=\"M0 0h21v21H0V0z\"\/>\r\n            <\/g>\r\n            <g clip-path=\"url(#utu01tagqc)\" transform=\"translate(31.292 154)\">\r\n              <path fill=\"#FFF\" d=\"M0 0h6.417v11H0V0z\"\/>\r\n            <\/g>\r\n          <\/g>\r\n        <\/svg>\r\n        Learn more\r\n      <\/span>\r\n    <\/div>\r\n  <\/div>\r\n  <div class=\"promo__fdic\">pp电子官网, Member FDIC<\/div>\r\n  <div class=\"promo__animation-wrapper\" aria-hidden=\"true\">\r\n    <lottie-player class=\"promo__animation\" mode=\"normal\"><\/lottie-player>\r\n  <\/div>\r\n<\/a>\r\n\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-interest-rate-on-a-cd\">What is the interest rate on a CD?<\/h3>\n\n\n\n<p>A CD pays a set interest rate when you agree to leave your money with a financial institution for a certain term. <a href=\"https:\/\/www.discover.com\/online-banking\/cd\/?src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">CD rates<\/a> can vary depending on your financial institution, the term of the CD, and the interest rate environment. Typically, if you are willing to put more money into a CD or open one with a longer term, you can expect a higher rate of interest, Bessette says.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-long-does-a-certificate-of-deposit-term-last\">How long does a certificate of deposit term last?<\/h3>\n\n\n\n<p>CDs aren\u2019t designed for money you may need today or this week. Typically, CD terms range from one month up to five years. Some financial institutions offer even longer CDs. For example, pp电子官网 offers CDs with terms of up to 10 years.&nbsp;<\/p>\n\n\n\n<p>One way to manage CD terms is to use a <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/cd-ladder\/\" target=\"_blank\" rel=\"noreferrer noopener\">CD ladder<\/a> savings strategy, Bessette says. With a CD ladder, you open CDs with varying terms\u2014say one, two, and three years. That way you get to enjoy some higher rates of longer-term CDs without locking up all of your money for the full time period. When each CD matures, you have the option to roll the money into a new, longer-term CD.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-certificates-of-deposit-fdic-insured-nbsp\">Are certificates of deposit FDIC-insured?&nbsp;<\/h3>\n\n\n\n<p>Bessette points out that one of the big pluses for savers who use CDs is security. The rate of return is set, and the CDs offered by banks may be insured by the <a href=\"https:\/\/www.fdic.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Deposit Insurance Corporation<\/a> (FDIC) for up to $250,000 per depositor, per insured bank, per deposit ownership category. (pp电子官网 is an FDIC Member.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-some-limitations-of-cds\">What are some limitations of CDs?<\/h3>\n\n\n\n<p>While there are many <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/4-benefits-of-certificate-of-deposit\/\" target=\"_blank\" rel=\"noreferrer noopener\">benefits of CDs<\/a>, they do have limits. Notably, after you buy a CD, you are committed for the term of the product. If you pull your money out of a CD before the end of the term, you will likely be charged a penalty. That\u2019s why Bessette thinks CDs aren\u2019t great places to store money that you may need for day-to-day expenses. If you\u2019re looking for accounts with more flexibility, explore <a href=\"https:\/\/www.discover.com\/online-banking\/money-market\/?src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">money market accounts<\/a> and <a href=\"https:\/\/www.discover.com\/online-banking\/checking-account\/?src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">checking accounts<\/a>, which offer easier access to your money.&nbsp;<\/p>\n\n\n\n<p>CDs can also require minimum deposits. However, there is no minimum deposit required to open a pp电子官网 CD. You have 45 days after account opening to fund the pp电子官网 CD. Please note that minimum opening deposit requirements can vary across financial institutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-you-consider-a-cd\">When should you consider a CD?<\/h3>\n\n\n\n<p>A CD could be the right savings option for you if:<\/p>\n\n\n\n<h4 id=\"h-you-re-saving-for-a-specific-goal\">You\u2019re saving for a specific goal.&nbsp;<\/h4>\n\n\n\n<p>Because CDs have a set term, you can use them to save for a specific goal, Bessette says. Are you <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/money-saving-tips-wedding\/\" target=\"_blank\" rel=\"noreferrer noopener\">saving for a wedding<\/a>, a vacation, or a new home? A CD could help you get there.<\/p>\n\n\n\n<h4 id=\"h-you-re-tempted-to-spend\">You\u2019re tempted to spend.&nbsp;<\/h4>\n\n\n\n<p>Once you open a CD, spending that money isn\u2019t as easy as spending money from a savings or checking account. That inconvenience can actually be a benefit, Bessette says, if you\u2019re afraid you\u2019ll dip into your savings.&nbsp;<\/p>\n\n\n\n<h4 id=\"h-you-want-higher-rates-with-very-little-risk\">You want higher rates with very little risk.&nbsp;<\/h4>\n\n\n\n<p>Often, CDs pay higher interest rates than savings accounts, Bessette says. If you want higher rates but don\u2019t want to face the risks inherent in the stock market or with other assets, a CD ladder is worth considering.&nbsp;<\/p>\n\n\n\n<p>Some <a href=\"https:\/\/www.discover.com\/online-banking\/savings-account\/?src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">high-yield savings accounts<\/a> do offer rates that can compete with CD rates, however. So how do savings accounts compare to CDs?&nbsp;<\/p>\n\n\n    <\/div>\n    <div class=\"block-quote block-quote--5back\" data-parallax>\n      \n      <blockquote class=\"post--constrain-large\">\n        <p>\u201cSavings accounts and CDs both offer a safe place for you to put your money where it can earn interest.&#8221;<\/p><footer class=\"block-quote__source\">Chanelle Bessette, personal finance writer<\/footer>\n      <\/blockquote>\n    <\/div>\n    <div class=\"post__content\">\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-savings-accounts\">Savings accounts<\/h2>\n\n\n\n<p>A savings account is a bank account that offers interest on deposits. <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/should-i-choose-a-checking-account-or-savings-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">Savings accounts differ from checking accounts<\/a> in a few ways because savings accounts are designed for money you don\u2019t need for day-to-day expenses. But what about certificates of deposit vs. savings accounts? Let\u2019s look at some of the key questions about savings accounts, including, \u201cWhat is the interest rate on a savings accounts?\u201d and \u201cAre online savings accounts FDIC-insured?\u201d&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-the-interest-rate-on-a-savings-account-nbsp\">What is the interest rate on a savings account?&nbsp;<\/h3>\n\n\n\n<p>When you make a deposit in a savings account, the financial institution pays you interest. As of early 2024, the average interest rate on a savings account was 0.58%, <a href=\"https:\/\/www.bankrate.com\/banking\/savings\/average-savings-interest-rates\/\" target=\"_blank\" rel=\"noreferrer noopener\">according to Bankrate<\/a>. But many banks were offering savings accounts with a higher interest rate, without any fees or minimum deposit, such as the <a href=\"https:\/\/www.discover.com\/online-banking\/savings-account\/?src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">pp电子官网<sup>\u00ae<\/sup> Online Savings Account<\/a>. Keep in mind that savings account rates change over time, so they are not as predictable as CDs once you\u2019ve locked in a CD rate.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-benefits-of-a-savings-account-nbsp\">What are the benefits of a savings account?&nbsp;<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/why-open-a-savings-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why open a savings account<\/a>? There are plenty of good reasons. If you have money you don\u2019t need for day-to-day expenses, a savings account offers the option to earn interest on your deposits. Bessette says that the big benefit of savings accounts compared to CDs is that savings accounts have no set term, so you can access your money if you need it. Unlike when it\u2019s in the stock market, your money can\u2019t plummet in value when it\u2019s in a savings account\u2014making a savings account a low-risk place to park your cash.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-online-savings-accounts-fdic-insured\">Are online savings accounts FDIC-insured?<\/h3>\n\n\n\n<p>Online savings accounts offered by banks may be protected by FDIC insurance. As with CDs, the money in your account is protected if something should happen to the financial institution that holds the account. As a result, savings accounts are one of the lowest-risk places to keep your money.&nbsp;<\/p>\n\n\n\n<SCRIPT language='JavaScript1.1' SRC=\"https:\/\/ad.doubleclick.net\/ddm\/trackimpj\/N7285.7011.DISCOVERFINANCIALSERV\/B33135829.415865238;dc_trk_aid=607854237;dc_trk_cid=230632918;ord=1744459086;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1?\" attributionsrc ><\/SCRIPT><a class=\"promo promo--product-quiz promo--animated\" href=\"https:\/\/ad.doubleclick.net\/ddm\/trackclk\/N7285.7011.DISCOVERFINANCIALSERV\/B33135829.415865238;dc_trk_aid=607854237;dc_trk_cid=230632918;dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=;dc_tdv=1\" data-promo=\"product-quiz\" role=\u201dcomplementary\u201d>\r\n  <div class=\"promo__content\">\r\n    <img loading=\"lazy\" decoding=\"async\" class=\"promo__logo\" src=\"\/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-dark.webp\" srcset=\"\/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-dark@2x.webp 2x, \/online-banking\/banking-topics\/wp-content\/themes\/reskin\/dist\/images\/promos\/discover-dark@3x.webp 3x\" alt=\"pp电子官网 logo\" width=\"100\" height=\"19\">\r\n    <div class=\"promo__text\">\r\n      Which bank account is right for you?\r\n      <span class=\"promo__text-wrap\">Take our quick quiz<\/span>\r\n      <span class=\"promo__text-wrap\">to find out.<\/span>\r\n    <\/div>\r\n    <div class=\"promo__learn-more-wrapper\">\r\n      <span class=\"promo__learn-more-button\">\r\n        Start Now\r\n      <\/span>\r\n    <\/div>\r\n  <\/div>\r\n  <div class=\"promo__animation-wrapper\" aria-hidden=\"true\">\r\n    <lottie-player class=\"promo__animation\" mode=\"normal\"><\/lottie-player>\r\n  <\/div>\r\n<\/a>\r\n\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-are-the-limitations-of-savings-accounts-nbsp\">What are the limitations of savings accounts?&nbsp;<\/h3>\n\n\n\n<p>Savings accounts offer interest, safety, and convenience, but Bessette says they aren\u2019t the right solution for all your money. For one thing, these accounts may not come with check writing privileges or debit cards, which means they\u2019re probably not practical for day-to-day spending needs. The interest rate changes over time, and you don\u2019t know <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/federal-reserve-interest-rate-increase-savings-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">when savings account interest rates will go up or down<\/a>, so they can be less predictable than a CD.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-should-you-consider-a-savings-account\">When should you consider a savings account?<\/h3>\n\n\n\n<p>Savings accounts are a safe way to make money from your savings. You may want to <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/how-to-open-an-online-savings-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">open a savings account<\/a> if:<\/p>\n\n\n\n<h4 id=\"h-you-have-or-are-starting-an-emergency-fund\">You have\u2014or are starting\u2014an emergency fund.&nbsp;<\/h4>\n\n\n\n<p>Saving enough money to <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/4-steps-to-start-an-emergency-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\">create an emergency fund<\/a> that covers three to six months of expenses is a key step toward financial independence. With a savings account, you can earn interest while maintaining access to your emergency fund, Bessette says.&nbsp;<\/p>\n\n\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-15192\" src=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741.jpg\" alt=\"A man sits at a desk, smiling and holding a baby, next to plants and a laptop computer.\" width=\"2470\" height=\"1011\" srcset=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741.jpg 2470w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741-300x123.jpg 300w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741-780x319.jpg 780w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741-768x314.jpg 768w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741-1536x629.jpg 1536w, https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-content\/uploads\/2023\/03\/Certificate-of-deposit-vs-savings-account_2-InArticle-scaled-e1679060148741-2048x838.jpg 2048w\" sizes=\"auto, (max-width: 2470px) 100vw, 2470px\" \/><\/p>\n\n\n<h4 id=\"h-you-are-saving-regularly-for-short-term-goals\">You are saving regularly for short-term goals.&nbsp;<\/h4>\n\n\n\n<p>If you want to make regular contributions for a short-term goal, say setting aside part of your weekly pay for some furniture you plan to buy in a few months, savings accounts allow you to make deposits on your schedule and withdraw funds when you are ready. Bessette says that some banks allow you to divide your savings account into separate accounts tied to specific goals.&nbsp;&nbsp;<\/p>\n\n\n\n<h4 id=\"h-you-value-flexibility\">You value flexibility.&nbsp;<\/h4>\n\n\n\n<p>The rates for savings accounts are typically a little lower than those of CDs, but savings accounts give you easier access to your cash. If you value flexibility, that may make a savings account a better option for you, Bessette says.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-certificates-of-deposit-vs-savings-accounts-which-is-better-for-you-nbsp\">Certificates of deposit vs. savings accounts: Which is better for you?<strong>&nbsp;<\/strong><\/h2>\n\n\n\n<p>Saving is a fundamental part of a <a href=\"https:\/\/www.discover.com\/online-banking\/banking-topics\/financial-checklist\/\" target=\"_blank\" rel=\"noreferrer noopener\">healthy financial life<\/a>. When it comes to choosing where to put your savings, both CDs and savings accounts offer valuable features. How do you choose?<\/p>\n\n\n\n<p>\u201cThe main difference between a CD and a savings account is access to your funds,\u201d says Bessette, noting that savers can use both kinds of accounts to reach their financial goals. \u201cBoth are good options for earning interest on your savings, so it comes down to which structure works best for you. You can even use both in tandem as you work to achieve your goals.\u201d<\/p>\n\n\n\n<p>Now that you understand the basics of CDs and savings accounts, learn more about <a href=\"https:\/\/www.discover.com\/online-banking\/cd\/?ICMPGN=OS-BK-ARTCTA&#038;src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">pp电子官网 CDs<\/a> and <a href=\"https:\/\/www.discover.com\/online-banking\/savings-account\/?ICMPGN=OS-BK-ARTCTA&#038;src=S00001CUE\" target=\"_blank\" rel=\"noreferrer noopener\">pp电子官网 Online Savings Accounts<\/a>.&nbsp;<\/p>\n\n\n\n<p class=\"disclaimer\">Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Earn interest with the savings option that works for your goals. <\/p>\n","protected":false},"author":15,"featured_media":15190,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[76,15,77],"tags":[112,125,37,55,131,130,32,39],"class_list":["post-15118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking101","category-cd","category-online-savings-account","tag-cd","tag-cd-laddering","tag-emergency-fund","tag-financial-goals","tag-high-yield-accounts","tag-long-term-saving","tag-online-savings-account","tag-saving"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/comments?post=15118"}],"version-history":[{"count":40,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15118\/revisions"}],"predecessor-version":[{"id":20920,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/posts\/15118\/revisions\/20920"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media\/15190"}],"wp:attachment":[{"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/media?parent=15118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/categories?post=15118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.discover.com\/online-banking\/banking-topics\/wp-json\/wp\/v2\/tags?post=15118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}