Explore the fixed-rate certificate of deposit – its purpose, workings, benefits, drawbacks, and strategies to optimize your investment returns.

The SEC says a certificate of deposit is considered one of the safest savings options, but it does come with some risk. If the inflation rate grows faster than your money, it'll lower your real ...

A certificate of deposit typically offers a higher rate of return than a traditional savings account. Find out which type of CD might be right for you.

Certificate of Deposit Definition A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, or ...

A certificate of deposit (CD) is a type of deposit account that offers a fixed interest rate. To earn that rate, you'll typically need to keep your funds in the account for a certain period of time.

— A CD’s fixed interest rate may be eclipsed by an overall rise in interest rates. So, you may have secured a 3.75% APY for a two-year CD, but later see newer CDs offering APYs up to 4.5%.

Initial deposit The “initial deposit” is the amount you agree to put into your CD at opening. CIT Bank, for instance, has a $1,000 minimum deposit for most of its CDs.

A CD is an interest-bearing deposit account that works much like a savings account. However, you cannot withdraw money from that account for a fixed amount of time.

Understanding certificates of deposit A CD is a type of savings product that pays interest over a set period of time, typically a month to 10 years. Most CDs come with a fixed interest rate, but ...