Banky team Reviewed editorial answerA savings account is ideal for money you want to keep close at hand and easily accessible, while a certificate of deposit (or certificate of deposit) ties up a sum for a fixed term and with specific redemption terms in exchange for a return that is often more transparent.
Key points
If you need daily cash or emergency funds, savings are more flexible.
If you have money you won't need for a certain period, a certificate of deposit might be suitable.
The right decision balances the return with ease of access to your funds.
The figures, fees and limits in this answer vary by bank and change over time — confirm them with your bank or the official source before acting.