A CD account, or certificate of deposit account, is a savings account that offers a higher interest rate than a traditional savings account. This account is a good option for those who want to save for a specific goal, such as a down payment on a house or a car.
CD accounts work a little differently than traditional savings accounts. In order to open a CD account, you must deposit a certain amount of money, called the minimum deposit. This minimum deposit varies from bank to bank, but is usually between $500 and $2,000.
After you open a CD account, …