These days, if you’re depositing your nest egg in a traditional savings account, you could be missing out on major interest gains.
Annual percentage yields (APYs) for certificates of deposit (CDs) are hitting 5.15% and in some cases even higher, giving you the chance to boost your savings balance by switching to a certificate of deposit (CD). Reminder: A CD is a type of savings account that offers a fixed interest rate on a lump-sum deposit for a set period of time.
Because the bank or credit union is hanging on to your funds for a set amount of time, CDs usually carry higher APYs than other savings vehicles. They also typically come with penalties for making early withdrawals.