📜 Certificates of Deposit (CDs): Guaranteed Growth

Introduction

If you want to grow your money without the ups and downs of the stock market, a Certificate of Deposit (CD) offers security and predictable returns.

Explainer: What Is a CD?

A CD is a time deposit where you agree to leave your money in the bank for a set term (e.g., 6 months, 1 year, 5 years) in exchange for a fixed interest rate.

• Safe, FDIC/NCUA insured
• Typically higher interest than savings accounts
• Early withdrawals may incur penalties

Comparison: CD vs. Savings Account

• CDs: Higher fixed rate, locked term, penalty for early withdrawal
• Savings: Lower, variable rate, flexible withdrawals
  Tip: If you don’t need the money soon, a CD can beat a savings account.

Guide: How to Get Started

Decide how long you can leave funds untouched

Compare CD terms (short-term vs. long-term)

Watch for promotions (special-rate CDs often pay more)

Consider a CD ladder strategy (staggering terms for better liquidity)

Trends: CDs in 2025

• Rates are historically high after years of low yields
• Online banks are offering flexible CDs with reduced penalties
• CD ladders are popular with retirees seeking income stability

Lifestyle Connection

A CD is like a financial time capsule — lock away money today, and open it in the future with a nice bonus waiting for you.