What is a Certificate of Deposit?Ī certificate of deposit (CD) is a type of savings account that generally offers a higher interest rate compared to standard or traditional savings accounts.ĬDs are considered one of the safest ways to grow the money you don't need to access in the short term. Generally, a CD offers a more competitive interest rate than a standard savings account and lets you grow your money risk-free.īut what is a CD account? How do CDs work and what are the pros and cons of opening one? This article offers a primer on CD accounts, including how to invest in CDs and what CD rates are all about. You could park that cash in a checking or savings account, but another option may be to open a certificate of deposit (or CD) – a type of savings account that offers high returns with low risk. When interest rates are rising, you might be looking to earn a competitive return on your savings.
