The economic terrain millions of Americans find themselves in lately may not be the one many were hoping for. With inflation surging in recent months – now at its highest level in three years – and elevated interest rates effectively frozen for the foreseeable future, many understandably feel stuck right now. For savers, however, there remains a silver lining in the form of elevated interest rates on select savings accounts. That can help boost their money and protect it from the volatility it would otherwise feel if invested or stored in low-rate account alternatives.

A certificate of deposit (CD) account, for example, now comes with an interest rate of 4% or higher, depending on the term. That's $4 earned for every $100 deposited. Considering that the average rate on a traditional savings account is just 0.38% now, the benefits of a CD account are clear. Plus, CD rates are fixed, meaning that they won't change even if the economy or interest rate climate does. That's something that traditional, high-yield savings and money market accounts all fail to offer.

At the same time, a CD account is a savings tool that, like all others, will only be as effective as the saver who maintains it. And that means knowing which mistakes to avoid in today's economy, specifically. Below, we'll outline three worth understanding for those savers who have yet to take advantage of today's market with a high-rate CD account.

Start by seeing how much interest you could still be earning with a CD here.

3 CD account mistakes to avoid in today's economy

To improve your chances of success with a CD account in today's unique economy, it's important to avoid certain mistakes. Here are three big ones to avoid right now:

Not shopping around for an online bank

Not shopping around for a bank that's offering the highest rate on a CD is always a mistake worth avoiding, but especially now that higher rates are on pause for longer. Taking it a step further, it's especially important to shop around for online banks, specifically. Since these institutions often don't have the same maintenance costs that banks with in-person branch locations do, they're often able to pass on those savings in the form of higher rates to account holders. 

If you don't take the time to comparison shop your online options, however, you'll likely get stuck with a much lower rate with your local bank. This is an easy mistake to avoid now that today's higher interest rates look to be holding steady. Take advantage, then, with an online institution.

Shop for high-rate CD accounts online today.

Choosing a short-term CD over a long-term one

With rates on short-term CDs and long-term CDs relatively similar right now, it may be tempting to take the quick money you can earn with a short-term CD versus what you can get with a long-term one. But that would be a shortsighted approach as a long-term CD will earn more than a short-term one with the same deposit, even if the former has a slightly higher rate. That's thanks to the extended interest-earning timeline (and compounding interest) the long-term CD offers. 

Remember, too, that today's CD rates are exponentially higher than they were at the beginning of the decade and that interest rates are cyclical. They will eventually decline again, even if that doesn't appear likely now. By locking in a high, long-term CD interest rate now, however, you'll enjoy big returns for years to come, regardless of what happens in the interest rate climate during that time.

Depositing more than you can part with

In today's economy, protecting as much of your money as possible is an understandable goal. And a CD is a perfect tool for doing just that. But it can also be a costly one if misused, as you'll need to pay an early withdrawal fee for taking out your money before its maturity date. Depending on the lender, that could be equivalent to most or even all of the interest earned to date, bringing you directly back to where you started. So don't deposit more into one of these accounts than you can comfortably afford to part with, even if today's rates make that difficult to do.

The bottom line

A CD account has been a profitable and secure savings tool for millions of savers in recent years, and it appears that it will maintain that reputation for the foreseeable future, as long as savers avoid these costly mistakes. By doing so, they can protect their principal, grow their interest and, perhaps most importantly, earn a measure of peace of mind until the economic climate stabilizes again.