CD or Savings account?
By Lena Kovadlo
@lovebuglena (52146)
Staten Island, New York
April 27, 2026 11:18am CST
I saw that I can earn 3.7% APY for a 6-month CD at Chase.
Since I am a Chase customer I thought maybe I can take advantage of this.
And then I learned that to open this CD I need to put in a minimum of $100,000.
I don’t have that kind of money so that’s out.
Putting in anything less than that will earn 3.2%.
That is still not a bad percentage, though I’d prefer higher.
Capital One—I am a customer there as well—offers 3.2% for six months, just like Chase.
But if I opt for a 12-month CD instead I can earn 3.9%.
And they don’t require you to put in such a high amount of money as Chase to earn this rate.
The downside to a CD is you can’t take money out until it matures or you have to pay a penalty.
Perhaps it’s best to look into opening a savings account instead.
You earn good interest and can withdraw money any time.
Capital One has a savings account that pays 3.2% but I think it’s an online account.
Does that mean I can’t go to the bank and withdraw money and instead have to transfer money from this bank to another and then withdraw the funds?
7 people like this
6 responses
@DaddyEvil (174482)
• United States
27 Apr
Hmm... I was sending a friend some money through PayPal yesterday and saw they have a savings account that pays 3.4% interest but I didn't look at the details.
Since we all have PayPal to get paid by myLot, have you thought about using them as your savings account?
Image from PayPal.
1 person likes this
@DaddyEvil (174482)
• United States
27 Apr
@lovebuglena As safe as any other bank. It's FDIC insured.
I actually use their Debit card to access my myLot money and Pretty and I both deposit money into my account before we go out of town or do anything since it's easier and safer than carrying cash. (We both do carry some cash around but not a whole lot of it.)
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
27 Apr
@DaddyEvil I didn’t even know they have a debit card.
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
27 Apr
I didn’t even know you can do that. How safe is it?
1 person likes this
@Ineeddentures (34529)
•
27 Apr
Go raid the joint account.
Invest it all with Chase
Don't tell Lenny
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
27 Apr
If the money vanishes from the account, he will know though. At least if he bothers to look.
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@lovebuglena (52146)
• Staten Island, New York
27 Apr
@Ineeddentures I was gonna wait till the end of the month when the interest comes in for April and then open a savings account and move my share of the money there. I would prefer to have it in a savings account because if I need access to the money (for myself, not for him) then I’ll have it.
Now I just found out today that the interest in that account that I was gonna open that paid 3.2% is now 3.1%. Obviously the interest is not fixed so it can change. I wonder if it’s gonna keep on dropping.
1 person likes this
@Ineeddentures (34529)
•
27 Apr
@lovebuglena
Just do it lol
What's he going to do?
Have you bumped off?
1 person likes this
@Orson_Kart (8273)
• United Kingdom
29 Apr
What’s a CD? Over here you can get near 5% in a decent savings account and it’s tax free. Do you pay tax on your savings?
@Orson_Kart (8273)
• United Kingdom
2 May
@lovebuglena We have similar savings accounts here which give a fixed interest for a set period of time. Usually they are for a minimum of a year and you get penalised if you take it out early. Things like bonds are taxable, but we have tax-free savings accounts called ISAs. You can save up to £20k per year in those. A good alternative to saving in a pension, which will eventually be taxable when you take it. ISAs are paying around 4.5% atm.
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
29 Apr
CD is Certificate of Deposit. It offers a higher rate than a savings account but a CD is only for a certain period of time and if you take money out before the time ends you pay a penalty. You have to report the interest when you file your taxes but not sure if you pay any taxes on it or not. Maybe it depends on how much you earn. I didn’t have to pay anything when I reported mine.
1 person likes this
@moffittjc (128835)
• Gainesville, Florida
28 Apr
Where you put that money should depend on whether or not you will need it. A savings account is a good place to park money for the short-term, before you move it into longer term investment accounts. Also, you should always keep emergency funds in a savings account where you can access it quickly if the need arises. I take advantage of both savings accounts and CD accounts for my cash holdings, but I don't depend on either for long-term investment growth. I use online banks for both savings and CD's since they pay higher interest rates than traditional brick and mortar banks.
I saw DaddyEvil's comments in this thread about PayPal Savings, and it is the place where I deposit all my online and passive income until such time as I move it to other investment accounts. PayPal Savings has a very competitive rate for a savings account.
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
28 Apr
I definitely want to be able to have access to my money, especially since I currently do not work. My mom tells me to put the money into a CD and if I need any money or if he requests his share, I can borrow from her and then pay her back once the CD matures, but I don’t think I wanna do that.
@TheHorse (238314)
• Walnut Creek, California
27 Apr
@lovebuglena It's a good rate. Rates have been going down over the past few months, though.
1 person likes this
@LindaOHio (222417)
• United States
28 Apr
That's good interest, even on a regular account. I don't think I'd tie that money up in a cd when you are looking to move. You might need some $$..
1 person likes this
@lovebuglena (52146)
• Staten Island, New York
28 Apr
I’d prefer a savings account. Just hope the rate doesn’t drop a lot.
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