Should You Break a CD to Chase a Higher Rate?
When rates move, it's tempting to break a Certificate of Deposit early and move the money into a high-yield savings account paying more. But breaking a CD early costs you an interest penalty, so the switch is only worth it if the extra growth from the new rate, over your remaining time horizon, outweighs that penalty.
This calculator compares the two numbers directly: what you'd give up by cashing out your CD today, versus how much more you'd earn by parking that money in a higher-rate HYSA for the months you have left. If the horizon is short or the rate difference is small, staying put usually wins — but a large rate gap over a longer stretch can make switching worthwhile.
Frequently Asked Questions
Not all of it — you keep the interest earned minus the early withdrawal penalty, which is usually a set number of days' worth of interest based on the CD's term.
If the HYSA's rate is meaningfully higher and you have a long time horizon left, the extra growth can outweigh the penalty from breaking your CD early.
Yes — you don't have to close your CD to open a HYSA. This calculator is only useful if you're specifically considering moving the same funds from one to the other.