What Is a Certificate of Deposit (CD)? Pros and Cons
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A Certificate of Deposit (CD) is a type of savings account where you deposit money for a fixed period and earn a fixed interest rate. CDs are offered by banks, thrifts, and credit unions, and they generally offer higher interest rates than savings accounts in exchange for locking in your funds for a set duration. Key Features of CDs: ➡️Fixed Term: CDs have a specific, fixed term (e.g., 1 year, 3 years) during which you agree not to withdraw your funds without penalty. ➡️Fixed Interest Rate: The
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