A CD, or certificate of deposit, is a type of savings account. It is a savings account that offers a higher interest rate than a regular savings account. A CD is a good option for someone who wants to save money for a specific goal, such as a down payment on a house or a car.

When you open a CD, you agree to keep your money in the account for a certain amount of time. The amount of time you have to keep your money in the account is called the “term.” The longer the term, the higher the …