How do banking cd's work?

Question

How do banking cd's work?

Answer 1

You give a certain amount of the money to the bank, & they give you an interest rate & an amount of time that they'll hold your money (you pick the amount of time usually, the minimum amount is typically 3 months). Their is typically a fee for early withdrawal, so don't put it in their for too long if you think your going to need it.

Make sure also that you go to a bank that is FDIC insured.