CD's usually out performs HYSA and they are fixed rated interest for the length of the term. HYSA are variable which can go up and down. Usually they go down over time. Also you can ladder CD's and keep climbing. So you have some flexibility when the shorter terms matures.
Plus if you have a spending problem a CD can help prevent you from withdrawing money as you will be penalized for it.
HYSA are good for emergencies dont get me wrong, but for parking money for near future purchases ranging from Christmas gifts up to a downpayment for a house, a CD is superior.
kickskunk t1_ja8pp4w wrote
Reply to comment by Unlucky-Clock5230 in Why do CD rates vary so much by length of term at Chase bank? by ncrowley
CD's usually out performs HYSA and they are fixed rated interest for the length of the term. HYSA are variable which can go up and down. Usually they go down over time. Also you can ladder CD's and keep climbing. So you have some flexibility when the shorter terms matures.
Plus if you have a spending problem a CD can help prevent you from withdrawing money as you will be penalized for it.
HYSA are good for emergencies dont get me wrong, but for parking money for near future purchases ranging from Christmas gifts up to a downpayment for a house, a CD is superior.