Certificates of deposit (CDs) and high-yield savings accounts have traditionally offered savers similar benefits. Both come with higher interest rates than can be found with regular savings accounts. And both have seen rates spike in recent years thanks to an elevated interest rate climate. Accordingly, each account type has given savers a much-needed boost when their funds were otherwise being damaged by inflation and higher borrowing costs. But that doesn't mean they're equally as beneficial, either. 

While the differences between the two may be negligible with smaller deposit amounts, as savers look to put more money into either, concerns over differences become more pronounced. This is particularly true for savers looking to boost their interest on five-figure amounts, like $20,000. If you're comparing a $20,000 CD against a $20,000 high-yield savings account now, for example, there are some timely considerations to think about before getting started. Below, we'll break down three of them.

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$20,000 CD vs. $20,000 high-yield savings account: What to consider now

Don't rush into depositing this much money into one of these accounts before first examining these three timely items:

The interest-earning potential

CD and high-yield savings account rates are comparable. Rates on short-term CDs, for example, are between 4.31% and 4.49% now, while they're between 4.25% and 4.31% for high-yield savings accounts, according to data. While that may seem like they have the same interest-earning potential, the details here matter. Those CD rates will mature after the account term ends in three to six months, while the high-yield savings account rates could change before that point, thanks to a variable rate that changes frequently for savers. In other words, you'll need to do the calculations to determine which can earn you more interest over time. While rates are similar now, they may not remain so for much longer.

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Upcoming rate changes

Depositing $20,000 into a 6-month CD with a rate of 4.49% can earn you more than $400 now. But doing the same with a high-yield savings account likely won't. With rate cuts appearing more likely for later this year, rates on high-yield savings accounts may fall at the same time that the CD rate remains fixed. 

While Fed rate cuts won't impact savings account rates by the same margin, there will be an impact. And with the tool listing a September 2025 rate cut as a more than 67% likelihood, this could hurt savers relatively soon, especially considering that banks don't have to wait for formal rate cuts to adjust the rates they provide savers. Understanding this possible reality, then, savers may want to put their $20,000 into a CD instead.

Access to your money

A CD requires savers to leave their money untouched for the full CD term or risk having to pay an early withdrawal penalty to regain access. And $20,000 is a lot of money to lose access to, particularly if it's for a long-term CD of more than 12 months. Savers will need to judge for themselves if this is both worth the return and simple to do. 

If it's not both, then it may be better to put that money into a high-yield savings account, even if it means having to endure predictable rate cuts later this year and in 2026. Consider, then, the early withdrawal penalties of a CD versus the changes in rates that high-yield savings accounts may come with to better determine which is more valuable for your unique situation.

The bottom line

The decision to deposit $20,000 into a CD or high-yield savings account now should be primarily guided by the above three considerations. There won't be a one-size-fits-all answer, however, so view these guidelines through your own financial prism to determine an answer. And don't leave your money in a traditional savings account. With now, you're essentially losing money by not taking advantage with a CD or high-yield savings account now, even if the economic climate appears a bit unpredictable.