Certificates of deposit (CDs) are savings accounts where you deposit money for a set period—anywhere from a few months to several years—in exchange for a fixed interest rate. Banks and credit unions offer CDs as a way to earn more interest than a regular savings account, but your money stays locked in until the term ends. Understanding how CDs work, what happens if you need money early, and how they compare to other savings options helps you decide if one fits your situation.
These articles answer common questions about CD basics: how interest rates and terms work, what penalties explore if you withdraw early, how much you can earn, and how CDs fit into a broader savings strategy. You'll also find information about different CD types, how they're taxed, and what to consider when choosing between a CD and other ways to save.