How a $75,000 CD compares to a high-yield savings account in a rising-rate climate

As the Federal Reserve hints at a potential rate increase in September, depositors are evaluating where to place a $75,000 sum. A one-year certificate of deposit priced at 4.40% would produce a small edge over a high-yield savings account yielding 4.10% based on today’s rates. The CD’s return is fixed for the full year, whereas the savings account’s rate can rise if the central bank tightens policy.

This dynamic means the savings account could eventually outpace the CD if rates climb. Financial advisers suggest that allocating funds across both options might capture the guaranteed CD premium while retaining the ability to benefit from any future rate hikes. Moving money out of traditional low-interest savings accounts, which average around 0.38%, is recommended to capture higher yields.