where money goes

A one-year CD pays 1.71% on average. The savings account next to it pays 3% with no lock-up.

CDs are sold as the safe way to earn more. In August 2026 the average one-year CD paid less than a good online savings account, and it locks your money for the year.

You asked for the CD-versus-savings check. It is below, as the slides from the post, then the one move, then the tool the chart points at.

Slide 1 of 7: A one-year CD pays 1.71% on average. The savings account next to it pays 3% with no lock-up.

Slide 2 of 7: The average one-year CD paid less than a good online savings account in 2026.

Slide 3 of 7: A certificate of deposit pays a fixed rate in exchange for locking your money up for a set term.

Slide 4 of 7: CDs feel like the responsible choice because the rate is guaranteed and the word certificate sounds serious.

Slide 5 of 7: Savings rates can fall while a CD's rate is locked, and that is the one real argument for a CD.

Slide 7 of 7: Save this for the next time a bank offers you a CD.

Two questions before you buy a CD.

01
Is the CD rate higher than the best savings rate you can open today?If not, stop here.
02
Are you certain you will not need this money before the term ends?If not, the penalty erases the gain.

The tool this chart points at

A low-fee brokerage

For the IRA, the index fund and the rollover. Broad index funds with expense ratios under 0.1%.

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Sources: FDIC National Rates and Rate Caps; Ally rate page.

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