Both High Yield Savings Accounts (HYSAs) and Certificates of Deposit (CDs) are great savings vehicles that are generally seen as safe investments, especially in times of high market volatility. It’s important, however, to understand how they work, as they serve different purposes and offer distinct features. A High Yield Savings Account is similar to a traditional savings account, but with a higher rate of return. Just like your usual savings account, a HYSA offers you the flexibility of easy and immediate access to your funds. It does not have any time limits that lock in your money, allowing you to deposit and withdraw cash whenever you need it. However, the interest rate you will receive for your HYSA will fluctuate with the current market offerings. Certificates of Deposit, on the other hand, offer a guaranteed rate of return for the lifetime of the certificate, but you are required to keep your money locked in the account for a specific amount of time, which can range from a few months to several years. Determining which account is more beneficial depends on your individual needs. If you value liquidity and the ability to access your savings at any time, a HYSA may be the better choice. However, if you have a specific savings goal and don’t need immediate access to your funds, a CD’s guaranteed rate of return can be advantageous.