When it comes to saving for retirement, most financial experts advise saving a lot of money over the course of your career and investing that money in a mix of stocks and bonds. We all know it's important to put away money for the future. This interest rate is generally modest but it beats what you would get from putting your money in a normal savings account - or under your mattress. You deposit some money in a CD from a bank and the bank pays you an interest rate over the term of the CD, which could be a few months or several years. If you want to learn more about which CD might be best for you, check out our analysis of theĪ certificate of deposit, or CD, is offered by a bank, brokerage or credit union. To find more info about individual CDs, take a look at our What features you should look for when choosing one.
It is important to understanding how CDs work and It's still worthĬomparing CD rates, though, because some are higher than others. These days, interest rates are low, which means you won't get astronomical returns from a CD. Putting money in a CD from a bank or credit union can be a safe way to stash your savings and earn a little interest.
