Which one is the best for 19 months, CD or HYSA?

[Lara]

I am planning to deposit a 19-month CD at 4.45% versus a high-yield savings account (HYSA) at 3.85% for $60,000. What are the key factors to weigh for this investment? Could you please let me know which option is the best at the moment?

[Kaile]

It totally depends on your needs for liquidity and interest rate stability. If you are sure that you don't need the money for the next 19 months, then a CD offers good, guaranteed returns. If you want the flexibility to withdraw the money without penalty, HYSA is good.

One more thing: CDs have a fixed rate, while HYSA rates can change. If interest rates rise, HYSAs earn more; if rates fall, CDs offer better returns. So, it's a strategic gamble.