For those seeking a reliable way to grow their savings, Certificates of Deposit (CDs) are a top choice for more than 50 million Americans. While high-yield savings accounts have gained popularity, CDs remain one of the most secure and predictable options for building wealth. Between 2021-2023, the number of Americans with CD accounts increased significantly due to rising interest rates. This resurgence represents one of the largest growth spikes in CD popularity over the decade, with an estimated annual growth of 5-10% in account openings.
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A Legacy of Security and Strong Returns
CDs have consistently provided higher returns than regular savings accounts. In 2023, the average rate for a one-year CD climbed to around 4.5% APY, compared to fluctuating high-yield savings accounts averaging closer to 3.9% APY. With five-year CDs offering up to 5% or more, investors can secure even stronger growth. And with FDIC insurance backing deposits up to $250,000 per person, per institution, CDs are one of the safest ways to protect and grow funds.
Why CDs Often Outperform High-Yield Savings Accounts
While high-yield savings accounts offer attractive initial rates, they can be inconsistent. CDs, however, lock in your rate, so if you secure a 4.5% APY on a one-year CD, you earn that consistently. Savings account rates often dip after promotional periods, but with CDs, you can lock in high returns for the entire term, gaining stability that savings accounts rarely provide.
Flexible Terms for Every Goal
CDs come with various terms, from a few months to several years. For example, investing $10,000 in a one-year CD at 4.5% APY would yield $450 in predictable earnings—higher than most high-yield savings accounts. For long-term planners, CD laddering, where you stagger maturity dates, maximizes returns while giving access to funds at regular intervals.
The Smart Choice for Safe, Stable Growth
High-yield savings accounts may work for flexible, short-term needs, but for those focused on reliable returns, CDs are an ideal choice. By locking in competitive rates, you can plan with confidence. It’s no surprise that over 50 million Americans trust CDs to help them build wealth safely and securely, making them a cornerstone of smart savings strategy.
