Many people look for the highest rate first, then tell themselves they will not need the money. It is safer to reverse that. First ask when you will need the cash. Then choose a term that fits.
A known date — buying a home, paying fees, settling a tax bill — can support a fixed term. A vague “maybe later” usually cannot.
When longer terms barely pay more
Sometimes a three-year rate is only a little higher than a one-year rate. In that case, think carefully before locking money away for the longer period. You may be giving up a lot of flexibility for a small gain.
A simple default
Money needed within a year: keep most of it easy to access, or use a very short fixed term. Money needed in one to three years with a clear date: match that date. A larger sum with no single date: consider splitting it across a few end dates (a “ladder”). Emergency savings: do not lock them away.
When a term ends, look at today’s options again. Do not assume automatic renewal is still a good deal.