$10,000 CD vs. $10,000 high-yield savings account: Here's which one experts recommend now.

Interest rates have been declining on savings products lately, but they're still quite high compared to a few years ago, particularly on high-yield savings accounts and certificates of deposit (CDs). Nationally, the average rate on savings products ranges between 0.38% to 1.63%, but if you really shop around, some banks are offering as high as 4% or more.

Which type of product is better, though? And where is your hard-earned money going to serve you best in today's economy? Here's what experts recommend if you're weighing a $10,000 CD vs. a $10,000 high-yield savings account right now.

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When a $10,000 high-yield savings account is best, experts say

Today's higher inflation means things cost more across the board. If you don't have money to weather those costs (or, presumably, even higher costs down the road), then putting your cash in a savings account is likely best, as it allows you to easily access your money at any time you need it, and with no penalty. 

You also might go the savings account route if you expect your income to fall or you don't already have a general emergency fund in place, which would allow you to cover an unexpected bill or repair comfortably. 

High-yield savings accounts are great ways to build up savings quicker than your traditional savings account allows for, as they have higher interest rates. And, unlike CDs, you'll be able to transfer money in and out very quickly if you need it in a pinch.

"If you need an emergency fund, a HYSA is a better option compared to a CD," says Brittany Pedersen, director of deposit and payment operations at Georgia's Own Credit Union. "It features a higher interest rate than a checking account, but provides the flexibility of access to the funds without any penalties."

High-yield savings accounts are also a good choice if you're just looking for something that's a lighter lift on your part. 

"For the average consumer, a high-yield savings account is less maintenance and easier to manage," says Roland Chow, a financial planner and CEO at Optura Advisors. 

CDs, on the other hand, are a bit more complex. You'll have to track maturity dates, for one, and it's also important to read the fine print.

"There may be early withdrawal penalties, plus sometimes the bank will automatically roll it into a new CD upon maturity of the old CD if the consumer does not stay on top of managing it," Chow says. "Worse yet, in some cases, when it rolls, you could risk the new rates being lower than original rates."

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When a $10,000 CD is best, experts say

If you simply need to guarantee you make the most interest off your $10,000, then a CD account is the way to go, experts say. 

"There is a slightly higher expected return on CDs because of the premium paid to an investor for locking up their money," says Stephan Shipe, a flat-fee financial and investment advisor at Scholar Financial Advising.

Just remember that CDs tie up your cash for a period of time. That means you can't access it if you need it unless you want to face an early withdrawal penalty. 

"For the average consumer, I would recommend a CD," Pedersen says. "Even if the consumer only signs up for a short-term CD, such as a three- to six-month product, it's a great way to earn a larger return in a short time frame compared to a regular savings account."

You'll also want to choose a CD if you think interest rates may drop soon, as it helps you lock in today's higher rates for an extended period. On the other hand, savings accounts have variable rates that change as market rates shift. 

"In the current environment, CDs are the better option to maximize your interest over HYSA," Pedersen says. "While the drops aren't precipitous, HYSA interest rates have been falling each month, which makes them the less desirable option. CDs will maintain their fixed rate for the term of the CD, so they provide the better option given today's economy."

More than likely, interest rates on savings accounts will continue to drop in the coming months, as the Federal Reserve is expected to vote for at least one more rate cut before year's end. There's a good chance that happens at the bank's September meeting, according to the CME Group's Fed Watch Tool.

When to consider both a CD and a savings account

Another option is to divide your cash up and split it between a savings account and a CD or multiple CDs.

"The benefit would be the ability to earn a slightly higher interest rate if you allocate a portion to CDs, because CDs do pay more," Chow says. "This would be a prudent avenue if you have a larger chunk of funds and would like to leave some very liquid — as an emergency fund in the high-yield savings account — and then the other portion in a less-liquid CD for the higher interest rates."

You could also try a CD ladder, which involves dividing your money out across several CD terms. When one CD comes to maturity, you can either take the money as needed (for an expense or bill you may be facing, for instance), or, if you don't need the cash, roll it into a new CD to keep it earning interest.

The bottom line

In the end, the best choice between a high-yield savings account and a CD depends on your financial situation and goals. If you need flexibility and easy access to your funds, a high-yield savings account may be the right move. On the other hand, if you're looking for a guaranteed return and can lock away your money for a set period, a CD might offer a better return. 

For those seeking a balance of both, splitting your funds between a high-yield savings account and a CD could offer the best of both worlds: liquidity and higher interest earnings. Keep an eye on interest rates and assess your needs to make the most informed decision for your savings strategy.