Certificates of deposit — commonly referred to as CDs — are accounts offered by banks and credit unions which come with higher yields than savings accounts, but have a term that ranges from three months to five years.

When the term ends, you get your money back, plus interest at a rate you locked in when you opened the account. Take out the money before the term ends, and you’ll face an early withdrawal penalty. Banks set their own terms for these penalties, but they’re often worth 90 or 180 days of interest.

These are FDIC insured and currently often come with yields at 5% or higher.

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