CDs vs. high-yield savings accounts: Which is better with inflation rising again?

MoneyWatch: Managing Your Money CDs vs. high-yield savings accounts: Which is better with inflation rising again? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Matt Richardson Matt Richardson Sr. Managing Editor, Managing Your Money Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance. Read Full Bio Matt Richardson April 14, 2026 / 2:00 PM EDT / CBS News Add CBS News on Google The choice between a CD and a high-yield savings account with inflation rising again isn't a clear one. Javier Zayas/Javier Zayas Photography /Getty Images With inflation now at a rate of 3.3%, its highest level in years and more than a full percentage point above the Federal Reserve's target of 2%, millions of Americans find themselves contending with the painful reality of higher costs for longer. In this landscape, many may also be contemplating the ways in which they can securely protect the money they do have and potentially even grow their principal. And with an interest rate under 0.40% on a traditional savings account and that rate being variable and subject to change, it's increasingly obvious that keeping your funds in that account type is no longer a viable solution.Fortunately, there are still viable accounts to consider. A certificate of deposit (CD) and a high-yield savings account are two. Both come with elevated interest rates that are multiple times higher than a traditional savings account. But they don't operate identically, and those differences could be important, especially with inflation on the rise again. Between a CD and a high-yield savings account, then, which is the better option with inflation increasing? That's what we'll examine below...