Even with interest rates sliding the past year, you can still lock in a 3.50% APY on a 6-month CD right now — not horrible at all.

So what does that look like in real numbers? If you park $5,000 in a 6-month CD earning 3.50% APY today, you’ll have $5,087 when it matures.

Another great short-term parking spot for cash is a high-yield savings account. Even though earnings aren’t guaranteed, you can still get a great APY right now and likely earn similar interest as a CD.

Here’s more info and how to decide what’s right for you.

The breakdown: what your $5,000 actually earns

The amount you’ll earn in interest with any CD depends on the APY you secure and which bank you choose to work with.

Here’s how different rates would affect your earnings on that same $5,000:

  • At 1.48% APY (national average): ~$37
  • At 3.00% APY: ~$74
  • At 3.50% APY: ~$87
  • At 3.75% APY: ~$93

The math matters because rates vary dramatically between banks. One institution might offer 1.00% while another pays 3.75% for the exact same 6-month term. That’s the difference between earning $25 and earning $93 on your five grand.

How CD earnings compare to high-yield savings accounts

Right now, top high-yield savings accounts are also paying around 3.50% to 4.00% APY. So your $5,000 could earn roughly the same amount — maybe a hair more — while staying fully accessible.

The trade-off of course is that savings account rates can change anytime.

Personally, this doesn’t scare me much. Even if rates drop once or twice over six months, we’re talking about maybe $10 to $20 difference on a $5,000 balance. That’s not enough to make me give up the flexibility of instant access to my money.

When a 6-month CD makes sense

Six-month CDs work best for specific situations. Maybe you’re saving for a vacation next summer and want guaranteed growth. Or you received a bonus that you won’t need until tax season.

The forced savings aspect helps too. Once your money goes into that CD, early withdrawal penalties create a real barrier to impulse spending.

For most people, I’d still lean toward a high-yield savings account. You’ll earn about the same while keeping your flexibility intact. But if you’re certain you won’t need that cash and want to remove spending temptation, a 6-month CD could work for you.

Compare today’s top CD rates to see what’s available right now.

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