What is a certificate of deposit?

A CD is a type of savings account that pays interest in exchange for setting aside money for a fixed period. The interest rate will not change throughout the term of the CD. Once it matures, you’ll have access to the amount you deposited, as well as the interest you’ve earned.

Once you deposit funds in a CD account, you keep them there until the term is complete. Once the term is complete or the CD “matures,” you can access the funds as well as the interest paid out on your deposit. If you don’t take action, the term may be renewed, and sometimes at a lower interest rate.

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CERTIFICATE OF DEPOSIT (CD): HOW DO CDS WORK?

Certificate of deposit: A reliable way to save money and build interest

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