A certificate of deposit (CD) is a savings product where you deposit money for a set period of time—anywhere from a few months to several years—in exchange for a fixed interest rate. Banks offer CDs because they know exactly how long they'll have your money to lend out. You come here to understand how CDs work, what happens when your CD matures, and whether locking up your savings makes sense for your situation.
The articles explain the mechanics: how interest compounds on a CD, what early withdrawal penalties are and why they exist, how CD rates compare to regular savings accounts, and what to look for when choosing between different CD terms and institutions. You'll also learn what happens when your CD reaches its maturity date and what your options are at that point.