CD yield, simple math.

How a CD differs from a savings account

A Certificate of Deposit locks your money for a fixed term (3 months to 5+ years) in exchange for a guaranteed APY. Unlike a savings account, the rate doesn't change. The trade-off: you pay an early-withdrawal penalty (typically 3 months of interest on shorter CDs, 6-12 months on longer) if you need the money before maturity.

When CDs beat high-yield savings

When you know exactly when you'll need the money — a down payment in 18 months, a tax bill in 9 months — a CD usually pays slightly more than savings. When rates are falling, a CD locks in today's rate; when rates are rising, you'd rather stay liquid in savings.

CD ladders: the boring trick that works

Split a $20,000 deposit across 5 CDs (3-mo, 6-mo, 9-mo, 12-mo, 15-mo). When the 3-month matures, roll into a new 15-month. You always have a CD maturing every quarter, you always earn near-top-of-the-curve, and you never have your full balance locked up.