CD Rates | What I Should Know

So what is a CD? A CD is an interest bearing bank account sort of like a savings account. However it's different in that you can't withdraw or deposit any money into the account until the agreed upon term has expired.

Since your money is locked in this way, the bank agrees to give you a certain interest rate on your money no matter what happens. This adds security to your CD. CDs come in all sorts of time periods. You should know whether you want to search for short term cd rates or long term ones. Longer term CD rates typically come with higher interest rates, unless banks are uncertain about the future outlook.

It's important to find the best rate, because unlike a savings account you can't just move your money if you find a better rate. You're locked in and if you try to take your funds out you'll have to incur a early withdrawal penalty.

It's important to see what sort of penalty comes with a long term CD. Some are harsher than others. That's what you need to know about cd rates, I hoped this helped and you learned what to look for in a CD.