A certificate of deposit is known as a CD and is used by consumers to save money for longer periods of time.
The federal government backs up to $250,000 of a CD's funds.
Once a CD is opened, you can't add funds. After opening a CD, you can't add an I
RS refund or employer bonus.
of CD Accounts
Variety of term lengths.
No monthly fees.
Cons of CD Accounts
Cannot withdraw until end of term.
Limits on deposits.
How to Find the Right CD Rate for You
Annual percentage yield
Banks and credit unions usually charge a penalty for early CD withdrawals.
A CD is used to save money for a future vacation, large purchase, or down paymen
t on a vehicle or home.