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New interest rate data released this week by the Federal Deposit Insurance Corporation (FDIC) reiterated a depressing statistic: The average interest rate on a traditional savings account is barely noticeable. At just 0.40% right now, savers would only earn 40 cents on every hundred dollars deposited into one of these accounts. Leaving any sizable amount of savings in this account type, then, is likely not a good idea.
Fortunately, there are still viable, high-rate account alternatives to choose from, both of which offer returns exponentially higher than traditional savings accounts do. High-yield savings accounts, for example, and certificates of deposits (CDs) still have rates over 4% now, making them about 900% more profitable than a regular savings account. But with the interest rate climate cooling, savers will need to make the right, profitable choice for their money now, before these rates decline even further. And it’s especially important to get this pick right when looking for a home for a large, five-figure amount like $10,000.
Between a $10,000 CD account and a $10,000 high-yield savings account, then, which will earn more in 2026? This is an important question to think through now, in the final weeks of 2025. Below, we’ll calculate the potential returns that can help better inform your next steps.
See how much interest you could be earning with a high-rate CD account here.
$10,000 CD vs. $10,000 high-yield savings account: Which will earn more in 2026?
Comparing the interest-earning potential between a CD and a high-yield savings account is impossible to do with precision, thanks to one major difference. CDs have fixed interest rates that will remain the same for the entirety of the term, up until the account matures, while high-yield savings accounts have variable rates that will change based on market conditions. So some speculation will need to be accounted for when trying to determine long-term gains.
Here’s what each could potentially earn over the next 12 months, calculated against readily available rates and the assumption that the high-yield savings account rate remains static:
- $10,000 6-month CD at 4.20%: $207.84
- $10,000 high-yield savings account at 4.20% after six months: $207.84
- Difference between accounts: Returns on both accounts are equal.
- $10,000 9-month CD at 4.00%: $298.52
- $10,000 high-yield savings account at 4.20% after nine months: $313.37
- Difference between accounts: The high-yield savings account earns $14.85 more.
- $10,000 1-year CD at 4.10%: $410.00
- $10,000 high-yield savings account at 4.20% after one year: $420.00
- Difference between accounts: The high-yield savings account earns $10.00 more.
In two of these three examples, the high-yield savings account earns more in 2026, while returns will be identical between both accounts over six months. But just because the high-yield savings account can earn more interest, based on today’s rates, doesn’t mean it will. Many would even argue that returns here are likely to be stronger by the end of next year with a CD, thanks to the fixed rate in the face of looming rate cuts ahead.
Evaluate both options carefully, then, and weigh the slightly higher but not guaranteed high-yield savings return against the locked-in, but slightly lower CD one to better decide which is likely to be most profitable for you in the new year.
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Think about splitting your funds between accounts
The second major difference between CDs and high-yield savings accounts? The former will require that you keep your money in the account for the full term to realize that return. Failure to do so will result in an early withdrawal penalty that could negate all of the interest earned on the account up to that point. High-yield savings accounts, however, operate like traditional savings accounts in that they allow you to make deposits and withdrawals as usual (albeit with that higher interest rate).
Understanding these differences and the potential interest earnings calculated above, it’s worth contemplating splitting your funds between both account types next year. By doing so, you’ll maintain access to a sizable portion of your money while protecting the other half against market fluctuations. You’ll also lock in a guaranteed interest rate on the CD account while still earning a comparable rate with a high-yield savings account.
The bottom line
As of late November 2025, a $10,000 high-yield savings account will earn more interest in 2026 than a $10,000 CD account. But interest-earnings differences between the accounts are negligible now and are likely to shift in the months ahead. By opening both account types with a lower initial deposit, savers can ideally experience the unique benefits of each account type while also protecting against each account’s downsides at the same time. For many savers, that’s a win-win worth pursuing for the new year.
