How to Get High-Yield Savings Accounts Like CDs (But Without the Lock-In)

The Certificate of Deposit (CD) has been a staple of conservative savings strategies for decades. Known for offering higher interest rates in exchange for locking up your money for a set period of time, CDs have appealed to people who want guaranteed returns without stock market volatility. But in 2025, many savers ask: Is there a better way?

Enter the High-Yield Savings Account (HYSA)—an alternative that provides competitive interest rates similar to CDs, without the rigid lock-in terms or early withdrawal penalties. If you’re looking for predictable growth, flexibility, and convenience, a HYSA might offer all the benefits you expect from a CD—and then some. Here’s how to get high-yield savings accounts like CDs.

High-Yield Savings Accounts vs CDs

In times of economic uncertainty or fluctuating markets, savers tend to search for stability—somewhere to park their money with minimal risk and steady returns. Traditionally, Certificates of Deposit (CDs) served this role, offering higher interest rates than regular savings accounts in exchange for locking in funds over months or even years. But many Americans in 2025 are discovering something better: High-Yield Savings Accounts (HYSAs) that offer comparable (or even better) returns, without locking up your money.

This shift reflects a larger change in how people think about saving. Flexibility, speed, and convenience matter just as much as returns. Savers want accounts that reward them for saving—but still give them the freedom to adjust, withdraw, or contribute as needed. If you’ve been considering CDs but don’t want to tie up your money, or if you’re trying to maximize your savings in a rising-rate environment, this guide will show you how to get CD-level returns from a HYSA—and potentially more.

Why CDs Became the “Safe Choice” for Savers

For decades, Certificates of Deposit were the go-to for people who wanted risk-free returns. CDs are time-based savings instruments—you agree to deposit money for a fixed term (anywhere from 3 months to 5 years), and the bank offers you a guaranteed interest rate for that period.

CDs are attractive to conservative savers for three core reasons:

• Predictable yield: The rate is locked in when you open the CD.
• Government-backed safety: FDIC- or NCUA-insured up to $250,000.
• Simplicity: You don’t need to manage the account after deposit—just wait for it to mature.

But the downside of CDs has always been clear:

• Your money is locked for the entire term. Withdraw early, and you get penalized—often 3–6 months of interest.
• You can’t add more money to a CD after opening it.
• If interest rates rise, your CD doesn’t adjust—you’re stuck earning yesterday’s rate.

In 2025, with interest rates reaching their highest point in years and more innovative fintech products emerging, savers realize they don’t have to accept these limitations anymore.

HYSAs: The Modern, Flexible Answer to CDs

High-yield savings accounts are regular savings accounts with better interest rates. They’re typically offered by online banks, credit unions, or fintech platforms and come with no lock-in periods, daily compounding, and higher APYs than traditional bank accounts.

Over the past two years, HYSAs have become increasingly competitive with CDs. In fact, many HYSAs now offer equal or better APYs than 1- or 2-year CDs, without requiring you to tie your money down. Let’s examine why HYSAs have become a powerful alternative to CDs.

How CDs and HYSAs Compare in 2025

To understand how HYSAs can effectively replace CDs in your savings strategy, it’s important to compare them side by side:

Feature	Certificate of Deposit (CD)	High-Yield Savings Account (HYSA)
Interest Rate	4.00% – 5.25% (fixed)	4.50% – 5.30% (variable)
Access to Funds	Locked until maturity	Withdraw anytime
Early Withdrawal Penalty	Yes	No
Compounding Frequency	Monthly or quarterly	Often daily
Add More Money Anytime?	No	Yes
Setup and Management	Often manual, sometimes in-branch	Fully digital, app-based

The key takeaway: HYSAs now deliver many of the upsides of CDs, without the drawbacks. They’re more fluid, user-friendly, and responsive to changing interest rates.

Why More Savers Are Choosing HYSAs Over CDs

As the financial world becomes more digital and interest rates fluctuate more frequently, traditional savings vehicles like CDs have fallen behind. Here’s why:

1. Comparable—or Higher—Yields

As of mid-2025, top-tier HYSAs offer APYs between 4.5% and 5.3%, while many standard CDs range from 4.0% to 5.25%, depending on the term. And unlike CDs, HYSA rates adjust over time, so if the market shifts upward, you can benefit from better returns without opening a new account.

2. No Lock-In Period

A CD requires you to commit. A HYSA gives you freedom. You can deposit more funds, withdraw as needed, or close the account, without fees or penalties. That makes HYSAs perfect for:

• Emergency funds.
• Short-term financial goals.
• Side income or freelance savings.
• Cash cushions for bill seasonality.

3. Better Compound Growth

While CDs often compound interest monthly or quarterly, HYSAs typically offer daily compounding, which maximizes growth. The difference may seem small in a single month, but daily compounding leads to higher effective returns over time.

4. Digital-First Experience

Online-only banks or fintech platforms offer most HYSAs. That means:

• Quick account setup (often under 10 minutes).
• Clean, mobile-friendly dashboards.
• Automation features to schedule deposits.
• Instant notifications about rate changes.

CDs, by contrast, still tend to be managed in a traditional banking environment—slow to open, limited visibility, fewer automation tools.

What to Look for in a CD-Like HYSA

If you’re ready to ditch CDs for a better alternative, not all HYSAs will deliver the same value. Some offer lower rates, have hidden fees, or limit transfers. To ensure you get the best deal, here’s what to look for:

1. Top-Tier APY

• As of now, aim for at least 4.50% APY.
• The most competitive HYSAs in 2025 are offering 5.00% or more.
• Be cautious with teaser rates that drop after 90 days—always check the fine print.
  

2. No Monthly Fees

CDs don’t charge you fees, and your HYSA shouldn’t either. Look for:

• $0 monthly maintenance fees.
• No inactivity or low balance fees.
• Free inbound/outbound ACH transfers.

3. No Minimum Balance

CDs usually require $500–$1,000 to open. Most modern HYSAs don’t. The best ones let you:

• Open with $0.
• Build up gradually over time.
• Avoid balance-based fees.

This is especially important for younger savers, freelancers, and people with fluctuating income.

4. Daily Compounding Interest

Compounding frequency directly impacts your earnings. HYSAs with daily compounding will grow your balance more efficiently than those compounding monthly.

5. Fast and Flexible Transfers

Choose a HYSA that:

• Connects easily to your checking account.
• Offers transfers in 1–2 business days.
• Allows for multiple monthly withdrawals without penalty.

This ensures you can access your money quickly when needed.

Real-World Example: HYSA vs. 1-Year CD in 2025

Let’s say you have $5,000 to save. Here’s how the outcomes may look:

Scenario	CD (12-month, 4.75%)	HYSA (5.00% APY, daily compounding)
Interest Earned (1 Year)	~$238	~$256
Access to Funds	Locked	Available anytime
Flexibility	None	High

Even with similar yields, the compounding structure and accessibility of HYSAs create a more efficient, safer savings strategy for most people.

How to Build a HYSA Strategy That Mimics CD Performance

It’s one thing to open a HYSA—it’s another to actually use it like a smart saver. Here’s how to replicate the benefits of CDs without the lock-in.

Break Savings Into Multiple Goals

Where CDs lock all your money into one account, HYSAs let you segment your funds by purpose. Open separate HYSAs (or use sub-accounts if offered) for:

• Emergency savings.
• Upcoming purchases.
• Travel or gift budgets.
• Self-employment tax reserves.

This approach gives you mental clarity and functional separation—without losing interest-earning power.

Automate Deposits Like a CD Schedule

CDs demand a lump-sum deposit. But you can recreate that savings discipline by setting up:

• Weekly or biweekly auto-deposits.
• A fixed monthly transfer schedule.
• Paycheck splits (if your employer allows it).

You’ll grow your HYSA consistently, just like you would with a CD—except you can stop, start, or increase deposits at any time.

Monitor APY Changes Regularly

Because HYSAs have variable rates, you’ll want to stay informed. Tools like Beem help you:

• Track rate changes on your current account.
• Compare top HYSA offers in real time.
• Get alerts when better opportunities appear.

This way, you’re never stuck earning 3.5% when 5.25% is just a few clicks away.

What If You Still Want Some “CD-Like” Stability?

If you love the idea of a locked rate and guaranteed return, you don’t have to give it up entirely. Here’s how to build a hybrid strategy:

• Keep 60–70% of your short-term savings in a HYSA.
• Allocate 30–40% to a short-term CD (6–12 months).
• Use a laddering technique with multiple CDs: stagger terms so one matures every 3–6 months.

This gives you stability and liquidity—and a clearer picture of your overall savings growth.

Conclusion

CDs had their place. They offered structure, safety, and predictable growth. But in 2025, you no longer need to trade access for returns. High-yield savings accounts give you the best of both worlds. Whether you’re building your emergency fund, preparing for a significant purchase, or just looking to earn more from your idle cash, the right HYSA can help you do it—without compromise.

And if you’re not sure where to begin? Beem makes it easy. Compare real-time HYSA rates, set savings goals, automate deposits, and access short-term liquidity through Everdraft™ when life throws a curveball. Locking up your money is a thing of the past. With a strong HYSA, you can grow, access, and protect it—all in one place. Download the app here.

FAQs on How to Get High-Yield Savings Accounts Like CDs