Are you looking at the Capital One 4.5% CD? That’s the only one I see offering that rate. But keep in mind, that rate is annualized. For an 11-month CD, you won’t make the full 4.5%. You’d only get around 4.125%. With a CD, you lock your money away for a set period of time and get a guaranteed return. If you want better liquidity, there are savings accounts offering 4%, like CapOne or SoFi, which still let you access your cash when you need it.
High-yield savings accounts are fine for beginners, but if you want to maximize returns with no risk, you should look into CD ladders or short-term government bonds like SGOV.
What’s the deal with CDs? What’s the law around them?