Is there any advantage to choosing a CD over a high interest online savings account?
The usual tradeoffs are rate and access to your funds. With a savings account, you generally have ready access to your funds. Since you've mentioned an online account, be certain that the institution exists and is FDIC or NCUA insured. Also determine what the institution's methods are for accessing funds. Do they have to be transferred to another bank and withdrawn by check, will you get your money by bank check (and how quickly), etc.
A certificate of deposit often has a higher interest rate and annual percentage yield than a savings account, because you give up the ready access that savings accounts provide. You may have to pay a penalty if you need to withdraw funds before the agreed-upon maturity of a CD account (and some banks won't let you access your funds early at all). However, you may be able to "ladder" your CD deposits so that some of your funds become due more quickly, and some are held for a longer period.
Published on BankingQuestions.com 5/18/07
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The usual tradeoffs are rate and access to your funds. With a savings account, you generally have ready access to your funds. Since you've mentioned an online account, be certain that the institution exists and is 