Even during periods when interest rates aren’t as high as they are today, CDs can be a popular choice among savers. And there are a few obvious benefits of opening a CD instead of sticking to a savings account, even a top-rated savings account.
For one thing, CDs commonly offer higher interest rates than savings accounts. With a CD, you’re committing to a specific term, whether it’s six months, 12 months, or longer. That’s something you deserve to be rewarded for.
Also, with a CD, the interest rate you’re earning is guaranteed for the term you sign up for. If you open a 12-month CD at 4.5%, you’re guaranteed that 4.5%. If you put money into a savings account paying 4.5% but market conditions change, your rate could drop to 4% without notice, leaving you to earn less interest on your money.
But there’s also a less-obvious benefit of opening a CD you should know about. And it may motivate you to put money into one while rates are still pretty strong.
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Capital One 360 Performance Savings APY 4.00%
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American Express® High Yield Savings 
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CIT Platinum Savings 
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CDs can help you stay on track
One potential downside of opening a CD is getting penalized for an early withdrawal. And that penalty generally depends on your bank and the length of your CD term. But it’s also possible to spin that penalty as a good thing.
There are no penalties for removing money from a savings account. Because of that, you may be more inclined to take withdrawals when temptation strikes instead of reserving your money for the goals you establish.
With a CD, you may be more motivated to leave your money alone because you don’t want to get penalized. That could be your ticket to meeting your financial goals instead of letting them fall by the wayside.
Imagine you want to buy a home in 2026 and set a down payment goal of $20,000. If you have $10,000 of that already saved, you may decide to just keep it in a regular savings account. But then, if you’re invited to go on vacation with friends next year, you might pull out $2,000 to do so, setting you back from meeting your goal.
If you put the $10,000 you’ve already saved into a 12-month CD, you may not touch it because you don’t want to face an early withdrawal penalty. That could set you up to buy that home when you want to instead of having to wait a few more months.
Explore your options for opening a CD
If you’re bothered by the idea of being charged a penalty, then a CD might “force” you to keep your money in the bank. And since CD rates happen to be strong right now, it’s a good time to open one.
So click here for a list of the best CD rates available today, and decide on a CD term that works for you. You could also set up a CD ladder, which has you splitting your money into a few different CDs with staggered maturity dates.
A CD ladder gives you more frequent access to your money, which means more flexibility. So you may find that it’s a good option that allows you to stay on track without causing you undue stress.
