With the Fed rate cycle moderating from 2024 peaks, CD and money market rates have come off their highs — but both still offer attractive yields relative to traditional savings accounts. The choice depends primarily on your liquidity needs.
2026 rate environment
| Product | Top 2026 rate | Liquidity |
|---|---|---|
| HYSA | 4.2–4.8% | Anytime |
| Money market account | 4.0–4.6% | Anytime |
| 3-month CD | 4.5–5.0% | 3 months locked |
| 6-month CD | 4.4–4.9% | 6 months locked |
| 12-month CD | 4.2–4.7% | 12 months locked |
| 5-year CD | 3.8–4.2% | 5 years locked |
When CDs make sense
The CD premium over liquid accounts narrows significantly in 2026. In 2023–2024, 12-month CDs paid 1–1.5% more than HYSAs. Now the gap is 0–0.5%. The liquidity cost of a CD is only worth it if:
- You expect rates to fall significantly (lock in today's rate)
- You want enforced savings discipline (can't access without penalty)
- The money has a specific use date (vacation in 6 months, tax bill in 12 months)
The CD ladder strategy
Divide savings across multiple CDs with staggered maturities: $5,000 in 3-month CD, $5,000 in 6-month, $5,000 in 12-month. As each matures, renew at whatever rate is current. You get partial liquidity every quarter while capturing CD yields. Works well for cash you don't need immediately but want accessible within a year.
Early withdrawal penalties
CD early withdrawal typically costs 60–180 days of interest. On a $10,000 12-month CD at 4.5% with 180-day penalty: leaving early costs $225. If you need the money in 9 months, a no-penalty CD or HYSA might beat the CD-then-early-withdrawal math.
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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