3 Reasons I Won’t Open a CD in April 2025 — Even With Rates Over 4%

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It’s easy to get lured in by short-term CDs offering 4.00% APY or more — especially in these weird economic times, when the future is so uncertain.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. These rates are nothing to scoff at, especially after years of sub-1% returns. But personally I’m not locking up my cash anytime soon. There are just too many reasons to keep my cash more liquid.Here are the three biggest reasons I’m not buying CDs this month.1. I don’t want my money locked upIt’s true that you can cash out a CD early if you want. But most CDs come with early withdrawal penalties, which means you’ll forfeit several months’ worth of interest — maybe more.The truth is my goals may shift mid-year. I may book more vacations with my family or buy into the stock market dip. I haven’t quite decided what the rest of 2025 looks like for me, and locking cash in a CD means I don’t have flexibility for evolving plans.2. High-yield savings accounts are still paying bigRight now, many online high-yield savings accounts (HYSAs) are paying around 4.00% APY. And there’s no commitment required, so you can access funds at any time.The APY gap between CDs and HYSAs is quite small right now.Here’s a quick comparison:Option$10,000 Earns (1 Year)12-Month CD – 4.35%$435HYSA – 4.00%$400Data source: Author’s calculations.For just $35 more in interest, my cash would be stuck for a year. Not really worth it for me.Looking for a top-tier HYSA? Check out our expert picks for the best HYSAs available today (earn up to 4.40% APY)3. Future interest rates are up in the airCDs come with fixed rates — which is awesome if you’re confident that interest rates are headed down soon.But if there’s anything I’ve learned over the past 12 months, it’s that nobody can predict the exact direction of interest rates. Not the Fed, not economists, and definitely not me!That’s why I’m staying flexible. With all my cash in an HYSA, the rate I earn will adjust with the market. And if things change unexpectedly (as they always seem to), I’m not locked into a decision I made months ago based on a forecast that didn’t pan out.The bottom lineI’m not against CDs. In fact, if I were a retiree and had a chunk of money I wasn’t going to touch for 12 months or longer, I’d probably consider one. If you’re in that boat, check out the top CD rates available now.But for my goals (or lack thereof) right now, CDs just don’t make sense. The tiny bit of upside isn’t worth the potential downside of missing out on a new opportunity that pops up.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

It’s easy to get lured in by short-term CDs offering 4.00% APY or more — especially in these weird economic times, when the future is so uncertain.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

These rates are nothing to scoff at, especially after years of sub-1% returns. But personally I’m not locking up my cash anytime soon. There are just too many reasons to keep my cash more liquid.

Here are the three biggest reasons I’m not buying CDs this month.

1. I don’t want my money locked up

It’s true that you can cash out a CD early if you want. But most CDs come with early withdrawal penalties, which means you’ll forfeit several months’ worth of interest — maybe more.

The truth is my goals may shift mid-year. I may book more vacations with my family or buy into the stock market dip. I haven’t quite decided what the rest of 2025 looks like for me, and locking cash in a CD means I don’t have flexibility for evolving plans.

2. High-yield savings accounts are still paying big

Right now, many online high-yield savings accounts (HYSAs) are paying around 4.00% APY. And there’s no commitment required, so you can access funds at any time.

The APY gap between CDs and HYSAs is quite small right now.

Here’s a quick comparison:

For just $35 more in interest, my cash would be stuck for a year. Not really worth it for me.

3. Future interest rates are up in the air

CDs come with fixed rates — which is awesome if you’re confident that interest rates are headed down soon.

But if there’s anything I’ve learned over the past 12 months, it’s that nobody can predict the exact direction of interest rates. Not the Fed, not economists, and definitely not me!

That’s why I’m staying flexible. With all my cash in an HYSA, the rate I earn will adjust with the market. And if things change unexpectedly (as they always seem to), I’m not locked into a decision I made months ago based on a forecast that didn’t pan out.

The bottom line

I’m not against CDs. In fact, if I were a retiree and had a chunk of money I wasn’t going to touch for 12 months or longer, I’d probably consider one. If you’re in that boat, check out the top CD rates available now.

But for my goals (or lack thereof) right now, CDs just don’t make sense. The tiny bit of upside isn’t worth the potential downside of missing out on a new opportunity that pops up.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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