A certificate of deposit is a savings account where you agree to leave money untouched for a set period—anywhere from a few months to several years—in exchange for a higher interest rate than a regular savings account. Banks and credit unions offer CDs, and your money is protected by federal insurance. The tradeoff is straightforward: lock up your cash for the agreed time, and the institution pays you more interest. If you need the money before the term ends, you'll typically pay a penalty.
These articles explain how CDs actually work—what happens to your money during the term, how interest gets calculated and paid out, what penalties cost, and how to compare CD rates across different institutions. You'll learn when a CD makes sense for your situation and what questions to ask before you commit your money.