Forget CDs, Even With Rates at 4%. Here's Where I'd Put My Money in September 2026
I just sold a rental property, so I’m sitting on a big pile of cash right now. And as much as I’d love to blow $200,000 on the new Tesla Roadster, I’m way more boring and responsible than that.
So I’ve been weighing the boring options, starting with certificates of deposit (CDs). Thanks to the Fed’s small rate bump in September, some top online CDs now pay around 4.00% APY.
Here’s the thing: My high-yield savings account already pays a similar rate, with no lock-in required. And since I don’t really see interest rates dropping anytime soon (if anything, it looks like there’ll be another hike before the end of the year) there’s no big incentive to choose a CD.
What a CD costs you when rates are climbing
When you lock in a CD, your rate is frozen for the entire term. That’s great when rates are falling — you keep earning a high APY while the market rate drops.
But when rates are being hiked, CDs are no bueno. Your money is locked in earning yesterday’s lower rate.
That’s exactly the risk today. The Fed’s September hike was its first since 2023, and it hinted more could follow. Locking in my money at 4.00% APY sounds great, but if rates rise to 4.50% APY in a few months I’ll be kicking myself.
Where I’m keeping my cash right now: a high-yield savings account
Right now, top high-yield savings accounts are also paying around the 4.00% APY range.
And some online banks have already started bumping yields even higher in response to the latest Fed meeting. Since APYs on savings accounts are variable, they take effect immediately.
The rate is only half the appeal, though. My money stays fully liquid, so I can move it anytime I want. And in today’s uncertain world I kind of like that flexibility.
I keep my cash with Happen Bank, currently in its Happen Bank LevelUp Savings account — which earned our award for the Best High-Yield Savings Account for 2026. It earns 4.20% APY with $250+ in monthly deposits, and there are no account fees or minimums to worry about.
2026 Award Winner
Happen Bank LevelUp Savings
Member FDIC.
APY
Rate info
Circle with letter I in it.
*LevelUp Rate of 4.20% APY applied to full balance with $250+ in deposits in Evaluation Period. Otherwise, accounts earn Standard Rate of 3.00% APY. LevelUp Rate applies to first two statement cycles. Rates variable & subject to change at any time. See terms: https://www.happen.com/legal/deposits/levelup-savings-t-and-cs
Min. To Earn APY
N/A
- Competitive APY
- No fees
- Easy ATM access
- Unlimited number of external transfers (up to daily transaction limits)
- Requires you to make monthly deposits to earn the best APY
- ACH outbound transfers limited to $10,000 per day for some accounts
- No branch access; online only
The Happen Bank LevelUp Savings account has a lot to offer. At the top of the list is its high APY, though you must deposit monthly to earn the best rate. Next is zero account fees, a strong and straightforward perk. Finally, you get a free ATM card, which you can use to withdraw from thousands of ATMs nationwide. Interested? You can open an account with $0.
When a CD still makes sense
To be fair, a CD isn’t a bad product — it’s just bad timing for me.
There are some cases where opening an online CD is the smarter move.
The big one is certainty. A CD guarantees your rate for the full term, so if you’re sure you won’t touch the money for a year or two, earning a “guaranteed” return can be worth it.
It also protects you if rates fall. Let’s be honest, 2026 has been unpredictable enough so far that I can’t rule it out.
A savings account rate can drop too, since it’s variable. But if that happens, I’d rather have my cash free to chase a better rate than be stuck watching from inside a CD.
The real mistake is letting your cash sit idle
It really hurts me when I see someone sitting on a big pile of cash that’s earning nothing. Mostly because I’ve been that person.
Years ago, before I worked in personal finance, I kept a huge chunk of money in a plain old checking account. I didn’t know what an HYSA was. I’d never even heard of a CD. So my cash just sat there for years, slowly losing value to inflation while I had no idea I was missing out on interest.
So here’s what I’ve learned since: the rate matters more than the type of account. A CD or a high-yield savings account will both run circles around the average savings account, which pays just 0.37% APY, according to Motley Fool Money research.
Whatever you choose, the goal is simple — earn the highest APY you comfortably can. Compare the top savings rates available now and make sure your cash is earning its keep.