Products like high-yield savings accounts and certificates of deposit (CDs) have offered savers much better returns than traditional savings in recent years. But rates on these accounts have begun to decline, so choosing the right product for 2026 means weighing yield versus access.
Why a CD account could be better in 2026
CDs often deliver the highest advertised rates because the money is locked up for a fixed term. That “lock-in” can be an advantage when rates are falling: you lock today’s rate for the CD’s term and won’t be affected if market rates decline. Aaron Ulrich, a financial advisor and owner of Integra Financial Planning, notes that locking in a higher rate now protects you if rates come down.
Many experts expect interest rates on savings products to ease gradually through 2026. Chuck Bowman, retail and business banking division manager at Amegy Bank, says forecasts point to continued rate trimming following Federal Reserve moves. If that happens, funds held in CDs started before cuts could earn noticeably more than newly offered rates later in the year.
Why a high-yield savings account could be better in 2026
High-yield savings accounts pay competitive rates while allowing withdrawals whenever needed, making them the more flexible choice. Most CDs impose penalties for early withdrawal, which makes them less suitable if you might need the cash. Todd Gunderson, CEO of Credit Union 1, highlights that the balance of competitive returns plus access can be beneficial in uncertain times.
High-yield savings rates remain well above those of traditional savings and checking accounts. Many online high-yield savings accounts are offering rates above 4%, versus the average regular savings APY of about 0.40% and average interest-bearing checking at roughly 0.07%. A’jha Tucker, product manager of consumer deposits at Georgia’s Own Credit Union, says high-yield savings are a strong option for those who prioritize liquidity.
The bottom line
The Federal Reserve is scheduled to meet in December, and market tools show a meaningful chance of another rate cut. If the Fed and banks trim rates, yields on both CDs and high-yield savings could fall. That makes timing important: if you want maximum guaranteed return and can leave funds untouched for the CD term, locking in a CD now may be advantageous. If you need access to funds or prefer flexibility while still earning well above traditional accounts, a high-yield savings account is likely the better choice.
Compare current CD and high-yield savings rates and product terms now so you can lock in a rate or maintain access before rates potentially decline further in 2026. Edited by Angelica Leicht.
