CDs and savings accounts both make sense as a great place to sock money away for a down payment on a home. Compare the interest rates and remember that savings accounts may give you more flexibility on when you can access your funds.
Other options include reward checking accounts if the interest rates are competitive. When it comes to choosing the best place to set aside funds for a down payment, I always recommend going with an account that you can avoid raiding for non-emergencies. Also, the more automated your savings for a down payment, the faster your will reach your goal. Here is a simple Saving for Goals calculator you can use to see how much you need to save each month.
The problem currently for CD buyers is "where are interest rates headed?" Not even the members of the Federal Reserve Board who vote on this issue are certain. That would dissuade me personally from buying a CD unless I had an idea of when I needed my funds Who wants to get stuck with a low rate if rates go up?
What you might consider is a new concept for savers. Check the information at www.maxmyinterest.com. I haven't done a thorough review of Max, but on the surface it looks like a possble answer to your question.
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