A certificate of deposit — CD for short — is a low-risk savings account that holds a fixed amount of money for a certain time, such as six months, one year or five years.
During that time, your deposit earns a fixed interest rate. Usually, the longer the term, the higher the interest rate.
When the CD term is up, you receive your initial deposit back plus the interest earned.
Unlike a savings account, CDs typically don’t let you withdraw money whenever you want. CD accounts require you to leave funds untouched for a fixed period or else face an
