Comprehensive Overview of Certificate of Deposit (CD) Accounts

Certificates of Deposit (CDs) are popular bank products that offer a secure way to grow savings with fixed interest over a set period. They range from 3 months to 6 years, with interest rates determined at the start. CDs typically provide higher returns than regular savings accounts, especially for longer terms. Rates are expressed as APY, accounting for compounding frequency, which varies among institutions. CDs are insured by the FDIC up to $250,000, ensuring safety for depositors. Different types, such as variable rate, liquid, jumbo, callable, and IRA CDs, offer investors versatile options to meet their financial goals. Laddering strategies can optimize returns while maintaining liquidity. Overall, CDs are a reliable investment when chosen carefully, with the security of federal insurance and potential for better yields through strategic planning.