Should I choose High-Yield CDs or High Yield Savings Account?

I want to know if the interest is better in a CD than a savings account. If I can get a savings account with a 5.05% rate, is that better than a CD at 4.95%. That might be obvious, but I am wondering if they accrue interest differently over time. We have money in a short-term CD to get higher interest than a normal savings account, but I don't want to keep transferring to CDs all the time if I can get the same exact return from a high-yield savings account. Thanks!

The savings account is definitely the best option. Contingent on this:
You need to ensure that the 5.05% rate currently advertised by the savings account is fixed and doesn't adjust with the market to do a fair comparison. If it is fixed, then the savings account is the best route if you believe the rates will continue to go down.

Pros for savings:
No penalty for withdrawing money, unlike CD
If rate is fixed, it will always be 5.05%. If the rates go higher, you can close the account and open a new one.

Cons for savings:
If rate is not fixed and it adjusts to market, it will pay you based on the market. Then it is up to you. If you feel that rates will go down, then the CD is your best option. If you feel the rates will go up, then put your money in a savings account.

High Yield Savings Accounts are accounts that the interest can go up or down at anytime. A CD gives you a guarantee of a certain interest rate for a specific period of time. Depends on the liquidity that you need, as you would loose a considerable amount of interest if you cashed in a CD early.

I would chose a savings account if the rate is fixed. I believe HBSC (?) is fixed at the 5.05 and is probably what you are considering. I prefer an online savings because just in case of an emergency you can access the money easier unlike a CD. Wamu online did offer a fixed 5% savings account that I signed up for (both HBSC, Wamu, ING etc . . . do not require minimum amounts and both are free with no fees). My other bank required a minimum 5000 to get the fixed 5% and unfortunately, I don't have that amount saved--yet.

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