Unlocking Your Savings: A Comprehensive Guide to Understanding CD Rates
October 30, 2024
In the world of personal finance, Certificates of Deposit (CDs) often emerge as a reliable option for individuals seeking a safe and predictable investment. CD rates, which determine the interest earned on these deposits, can vary significantly depending on various factors. This article will explore what CDs are, how CD rates are determined, and what to consider when investing in them.
What is a Certificate of Deposit?
A Certificate of Deposit is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period in exchange for a higher interest rate than traditional savings accounts.