What is a Certificate of Deposit (CD)?
A CD is a deposit that pays a fixed interest rate for a fixed term (3 months to 5 years). You can't access the money before maturity without paying a penalty (typically 3-12 months of interest). Best for money you don't need until a known future date. CDs are FDIC-insured.
More context
A CD is a deposit that pays a fixed interest rate for a fixed term (3 months to 5 years). You can't access the money before maturity without paying a penalty (typically 3-12 months of interest). Best for money you don't need until a known future date. CDs are FDIC-insured. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
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