A Certificate of Deposit (CD) account is a type of savings account that offers a higher interest rate than a regular savings account. This account is ideal for people who want to save for a specific goal, such as a down payment on a home or a car. CDs typically have a fixed term, such as six or 12 months, and require the account holder to make a minimum deposit.

If you have a CD account, you can withdraw money from it at any time. However, you may be subject to a penalty if you withdraw funds before the maturity …