A Certificate of Deposit, or CD, account is a special type of savings account offered by banks and credit unions. A CD account usually offers a higher interest rate than a regular savings account, but there is a tradeoff: you can’t access your money for a set period of time, typically six months or a year.
How do CD accounts work?
When you open a CD account, you agree to leave your money in the account for a certain period of time, called the “term.” During the term, you can’t touch your money unless you pay a penalty. The longer …