Is it better to put money in a CD or savings?

The best choice between a CD and a savings account truly depends on your personal financial goals and when you might need your money. If you need flexible access to your funds, like for an emergency, a savings account is often ideal. For money you don't anticipate needing for a set period, a CD can offer a predictable, fixed rate of return.

How much does a $10,000 CD make in a year?

The earnings on a $10,000 CD depend on its specific Annual Percentage Yield (APY) and term. For example, our 18-month bump-up certificate offers a fixed 3.75% APY. Over one year, a $10,000 deposit at this rate would earn approximately $375, though the full term for this certificate is 18 months.

What if I put $20,000 in a CD for 5 years?

The amount your $20,000 would earn in a CD over five years depends entirely on the specific CD's Annual Percentage Yield (APY) and its terms. Since CD rates and terms vary, it's important to review the current offerings. Generally, longer terms can sometimes offer different rates.

How much will $100,000 make in a CD account?

The earnings on a $100,000 CD are determined by the CD's specific Annual Percentage Yield (APY) and its term. For instance, if you consider our 18-month bump-up certificate with a 3.75% APY, a $100,000 deposit would earn approximately $3,750 in a year. Remember, the full term for this specific certificate is 18 months.

Certificates vs. Savings Account: Which Is Right for You?

Q: What is a disadvantage of CD?

A primary disadvantage of a CD is that your money is committed for a fixed term, meaning you can't access it freely. If you need to withdraw funds before the term ends, you may face early withdrawal penalties. This makes CDs best suited for money you don't expect to need in the near future.

Manage Your Money

Not sure whether to choose a certificate of deposit or a savings account? Broadview breaks down the key differences to help you maximize your savings. Compare options today!

A savings account keeps your money accessible. A certificate of deposit locks in your money for a set term in exchange for a fixed rate. The right choice depends on one thing: when you might need that money.

Broadview's Build Your Savings offers both options, including high-yield savings accounts with tiered rates and an 18-month bump-up certificate with the option to request a rate increase if rates rise. Consult a tax advisor about potential tax impacts.

Pros and Cons at a Glance

Savings Account

Withdraw anytime
No penalty for access
Good for emergency funds

Certificate of Deposit

Fixed term required
Early withdrawal penalties may apply
Best for money you do not expect to need soon

Some Build Your Savings accounts include no monthly fees, no minimum opening deposits, and free goal-setting tools to help you stay on track.

How to Choose Between a Certificate of Deposit and a Savings Account

Start with your timeline. If you may need funds within the next few months, a savings account gives you access without penalty. If you have money set aside that you do not expect to touch for a year or more, a certificate's fixed rate may work in your favor.

Two questions worth asking yourself to find the right fit:

How soon might you need this money?
Are you comfortable keeping it in place for the full term?

Making the Right Call

Neither account type is universally better. Savings accounts fit money that needs to stay flexible. Certificates fit money you can set aside and let grow at a predictable rate.

A simple starting point: Open a high-yield savings account for everyday flexibility, then consider Broadview's 18-month bump-up certificate for funds you can commit. If rates rise during your term, the bump-up feature lets you request a higher rate once.

If your situation changes, Build Your Savings offers options that can help you adjust without switching institutions. Both certificates and savings accounts at federally insured credit unions are protected—learn which products qualify through the FDIC's deposit insurance resource or the FDIC's certificate shopping guide for tips on choosing the right certificate of deposit.

Frequently Asked Questions

Is it better to put money in a certificate or savings?

The best choice between a certificate and a savings account truly depends on your personal financial goals and when you might need your money. If you need flexible access to your funds, for example, for an emergency, a savings account is often ideal. For money you don't anticipate needing for a set period, a certificate can offer a predictable, fixed rate of return.

What if I put $20,000 in a certificate for 5 years?

The amount your $20,000 would earn in a certificate over five years depends entirely on the specific certificate's Annual Percentage Yield (APY¹) and its terms. Since certificate rates and terms vary, it's important to review the current offerings. Generally, longer terms can sometimes offer different rates.

What is a disadvantage of certificate?

A primary disadvantage of a certificate is that your money is committed for a fixed term, meaning you can't access it freely. If you need to withdraw funds before the term ends, you may face early withdrawal penalties. This makes certificates best suited for money you don't expect to need in the near future.

^{Last reviewed: April 3, 2026 by the Broadview Team}