Certificates of Deposit

A Certificate of Deposit (CD) is a safe savings option offered by banks, where you deposit a fixed amount of money for a set period, such as six months or a year. In return, the bank pays you a guaranteed interest rate. The longer you agree to keep your money in the CD, the higher the interest rate usually is. If you withdraw the money early, you may face penalties. CDs are a low-risk way to earn interest, ideal for saving money you don’t need access to immediately.