With high interest rates, it may make sense for savers to split their money between savings accounts and CDs.
A CD is reliable because the rate you open it with will be the same rate it expires with. But that reliability comes in exchange for any potential rate increase opportunities. You'll be locked in no matter what happens in the larger rate environment. High-yield savings accounts, on the other hand, have variable interest rates. This will allow your account to grow even further if rates continue to rise. But, if rates fall, your interest-earning ability will fall with it.
By splitting your money between a savings account and CD, however, you'll be able to earn interest at the locked CD rate while also giving yourself the opportunity to earn even more with a high-yield savings account, should interest rates tick up yet again.Sometimes the best way to see if you benefit from something is by trying it first. This is true for high-yield savings accounts and CDs, too.
By opening both at the same time, you'll reap the benefits of each while also gaining the knowledge and experience you wouldn't have had if you left your money untouched elsewhere. From there, you can determine which you prefer best .
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