Discover how CD accounts work, understand terms, interest rates, compounding, and strategies to maximize CD benefits for financial planning.

Lisa Goetz is a finance content writer for Investopedia. She typically covers insurance, real estate, budgets and credit, and banking and taxes. Ebony Howard is a certified public accountant and a ...

Unlike a traditional savings account that lets you access funds at any time, certificates of deposit (CDs) require you to lock in your money for a predetermined period from a few months to several ...

Certificates of deposits, which gained popularity in the U.S. in the 1960s, are among the safest and most profitable ways to save money. With set annual percentage yields, CDs are a low-risk addition ...

As savings and deposit rates continue edging down, certificates of deposit stand out by offering something rare in today's economy: certainty. With the Federal Reserve's first policy meeting of 2025 ...

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Focus on CDs for cash reserves, use a CD ladder and compare rates. But don’t lose sight of a CD’s purpose. Many, or all, of the products featured on this page are from our advertising partners who ...

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A certificate of deposit is a type of savings account that earns interest for a set time frame, known as a term. The term is the length of time you agree to leave your money deposited in the CD. Read ...