Certificates of Deposit You can buy Certificates of Deposit
(CDs) at banks. They're called CDs because when you deposit your
money, the bank gives you a certificate telling you –
Certificates of Deposit pay slightly higher interest rates than
savings accounts. There are many kinds of CDs. They pay
different rates, and they require different lengths of time you
must keep your money in them. So if you decide to look into CDs,
you have lots of choices. Bank CDs are FDIC-insured. Just like a
savings account, your money is protected. To learn about how
safety and interest rates affect each other, look at the
Risk/Reward Pyramid. Money you invest in a CD is less liquid
than the money you put in a savings account. With a CD, you are
not free to take your money out whenever you want. You must
invest your money for a specific time: 3 months, 6 months, 1
year, 5 years. The time all depends on the CD you choose. Yes,
you can withdraw your money earlier, but then you must pay a
penalty. The longer the CD's deposit time,