This protects your returns from market fluctuations or falling federal interest rates.

: You agree to leave your funds untouched for a specific duration, typically ranging from 3 months to 5 years .

: Permits you to make additional deposits after the initial account opening, which is not usually allowed with traditional CDs.

: Unlike traditional savings accounts with variable rates, a CD locks in a specific rate for the entire term.

: This is the date the term ends, at which point you receive your initial deposit plus all earned interest.

Understanding Certificates of Deposit: A Safe Investment Option

: CDs at banks are insured by the FDIC , and those at credit unions by the NCUA , for up to $250,000 per depositor.

: If you need to access your money before the maturity date, you will typically be charged a fee, which often equals several months of earned interest. Common Variations