CD or Certificate of Deposit FAQs


A CD is a savings device which has a set interest rate and a predetermined amount of time to be open or active. This interest rate remains the same through the entire life of the CD, which based on its maturity type, may mature after 6 months, 12 months, 24 months, etc. You put your money into the CD at the set interest rate, and you cannot touch it until the account matures (unless you want to pay an early closure fee).

There is never a bad time to get a CD. It is especially wise if the interest rates are high.  It's a great time to lock-in your money at a high-interest rate to make sure you get the best return on your money. 
Yes, certificates of deposit (CDs) offer a reliable or consistent way to grow your money effortlessly. It is usually best to spread your savings across multiple accounts, and including CDs in your financial plan can make it stronger. 

Check out our current CD Rates
CDs typically offer higher interest rates than money market accounts but require locking in funds for a set period of time. However, withdrawing early from a CD may result in penalties. Meanwhile money market accounts provide more flexibility with withdrawals but often have comparatively lower interest rates, which can fluctuate based on market conditions. 

Learn more about Money Market Accounts.
CDs differ from standard savings accounts in a similar manner as they do from money market accounts. Specifically, CDs offer higher interest rates but require locking in funds for a set period of time, while standard savings accounts provide more flexibility for withdrawals but offer lower interest rates.

Learn more about Savings Accounts.