How a Fixed-Rate Certificate of Deposit Works Role of Interest Rates. Upon purchasing a CD, the bank pays interest based on the amount deposited and the tenure of the CD.

A fixed-rate certificate of deposit (CD) is a low-risk investment instrument that has a set interest rate over its entire term.

Learn about certificate of deposit (CD) types, how they work, and how they can fit into your savings goals. Browse Investopedia’s expert-written library for more.

Among certificates of deposit, you’ll find standard options along with specialty CDs like jumbo CDs, no-penalty CDs, step-up CDs, high-yield CDs, add-on CDs and callable CDs. What is a CD?

I f you’re weighing the pros and cons of a certificate of deposit, you’re not alone. While CDs aren’t as common as savings accounts or mutual funds, they’re worth considering based on your ...

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.

With a fixed annuity contract, ... “The best client friendly way I’ve heard a fixed annuity described is as a ‘ supercharged certificate of deposit,’ said Matthew Gaffey, ...

A high-yield certificate of deposit (CD) can help you earn more on your savings. Here’s how high-yield CDs work.

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.

Now that you know how to open a certificate of deposit, however, you need to decide if you should. The following factors can help you decide: Savings: How much you have to save can play a role in ...

A certificate of deposit or share certificate is a low-risk option to grow your money with a fixed interest rate. Here's what you need to know about these savings tools. Share certificate vs. CD ...

A certificate of deposit (CD) offers a fixed interest rate and encourages savers not to tap into their funds too early. Here’s how to choose the right one for you.