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What is a certificate of deposit (CD)?

A certificate of deposit (CD) is a type of savings account that pays a fixed interest rate on money held for an agreed-upon period of time. CD rates are usually higher than savings accounts, but you lose withdrawal flexibility. If you withdraw your CD funds early, you'll be charged a penalty.

What are the best interest rates on CDs (certificates of deposit)?

Currently, the best interest rates on CDs (certificates of deposit) are as high as 5.40%. Rates vary by term and often fluctuate. Below, you’ll find a summary of how CD rates are leaning—plus a guide to the best rates across... Currently, the best interest rates on CDs (certificates of deposit) are as high as 5.40%.

Should you buy a CD or a certificate of deposit?

Shopping around is important if you want to earn the top rate on your CDs. Certificates of deposit offer stability for people who want to earn more on their money without the risk inherent in stocks and bonds. Although interest rates may be higher than savings accounts and money markets, read the fine print carefully.

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