Our experts answer readers' banking questions and write unbiased product reviews (here's how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
- No-penalty CDs have a fixed interest rate for a term and don't have early withdrawal penalties.
- With a savings account, the interest rate may fluctuate, but you may deposit money more than once.
- Unless you find a high interest rate on a no-penalty CD, you'll likely prefer a savings account.
No-penalty CDs and savings accounts are two types of interest-earning bank accounts. But which is the better option for you?