Compare the full return
A CD fixes your APY for a stated term. Compare the yield, term length, compounding schedule, minimum deposit, maturity rules, and early-withdrawal penalty together.
A slightly lower rate can be better when it offers a shorter lockup or a more forgiving penalty. Build a CD ladder when you want periodic access without putting every dollar at one maturity date.
Know when savings is better
Do not lock emergency cash in a CD if an early withdrawal would create hardship. A high-yield savings account provides more flexibility, though its variable rate may move down after Federal Reserve cuts.