6 high-earning CD and savings accounts to open this January

This is a very good time to be a saver. Rates are generally high across the board for savings products, including certificates of deposit (CDs) and high-yield savings accounts, which is largely due to the Federal Reserve repeatedly raising the federal funds rate to fight inflation. Banks tend to move their rates in tandem with the numbers set by the Fed, which has had a significant impact on interest-bearing accounts.

If you want to take advantage of today's high interest rates, there are plenty of high-yield savings accounts and CD options available to you. Here are some that may be worth considering right now.

Ready to open a CD? Start shopping for the right CD account now. 

6 high-earning CD and savings accounts to open this January 

There are a range of options available when it comes to savings products. Financial institutions across the country offer both CDs and high-yield savings accounts, so take the time to find the one you trust that is also offering a competitive rate. 

Don't be afraid to look at online financial institutions, either. Online banks tend to offer some of the best interest rates available, as they don't have the same overhead costs as traditional banks with brick-and-mortar locations. 

Here are some top options to consider for both CDs and high-yield savings accounts:

6 highest-earning CDs to open this January

Here are six CDs that offer some of the highest rates available today:

• TotalDirectBank 3-month CD – 5.66% APY: This is a 3-month CD, so you won't be locking away your money for too long. One important note: the minimum deposit for this CD is $25,000, so this might not be the best choice for savers who can't meet that requirement. TotalDirectBank also has 6-month and 1-year CDs available with APYs of 5.50%.
• Western Alliance Bank 3-month CD — 5.51% APY: The 3-month CD from Western Alliance Bank has a minimum opening balance requirement of just $1, meaning savers can earn big yields even with small deposits. 
• CIBC 1-year CD – 5.51% APY: The minimum deposit required to open a CD at CIBC is just $1,000, which allows a wider number of savers to take advantage of this rate. 
• Marcus by Goldman Sachs 1-year CD – 5.50% APY: The minimum deposit required to open this CD is just $500, making this another good option for most types of savers.
• Bread Savings 1-year CD – 5.50% APY: This CD has a $1,500 minimum deposit requirement, and your CD will auto-renew at the current rate when it reaches maturity. However, you'll have a 10-day grace period to withdraw the funds without penalty at that point.
• BMO Alto 6-month and 1-year CDs – 5.50% APY: BMO is currently offering a 5.50% APY on both its 6-month and 1-year CDs. This bank has no minimum account balance requirement to open a CD, so you can earn interest on any deposit amount.

Look online and find the right CD account for you. 

6 highest-earning high-yield savings accounts  to open this January

Here are six high-yield savings accounts offering high interest rates right now:

• Milli – 5.50% APY: Milli has no minimum opening deposit requirement for this account, and you can start earning the advertised APY with a balance of just $1.00. Account holders also get access to a suite of tools to track their spending and savings and make them more efficient with their money.
• MyBankingDirect — 5.35% APY: There are no monthly fees for this account and the minimum opening deposit requirement is just $500. 
• Brio Direct – 5.35% APY: The high-yield savings option at Brio Direct is currently offering a 5.35% yield to account holders. The minimum opening deposit requirement is $5,000, the minimum balance to earn the APY is $25 and there are no monthly fees charged to the account. 
• Ivy Bank – 5.35% APY: The minimum opening deposit required at Ivy Bank is $2,500. The minimum balance required to earn the APY is also $2,500; accounts with lower balances will earn a 0.05% APY.
• Tab Bank – 5.27% APY: The high-yield savings account at Tab Bank has no minimum opening deposit requirement, no balance caps and no monthly fees. 
• TotalDirectBank — 5.26% APY: This is technically a money market account, but it functions similarly to a high-yield savings account. There is no monthly maintenance fee and an account balance of $2,500 is required to earn the APY, but the minimum opening deposit requirement is $25,000 via ACH.

The bottom line

Both CDs and high-yield savings accounts can be good options for savers. CDs allow you to lock in your rate for the entire term, so you'll earn the rate you got when you opened the account until your CD matures. Withdrawing money from your CD before the term is up, though, can result in significant penalties. High-yield savings accounts are more liquid, allowing you to take money out when you need it. The rate is variable, though, so if your bank lowers its rates, you'll start earning less interest. Consider your unique circumstances when choosing which products are right for you.