Which one is better the CD or saving accoung with interest?

Question

and exactley is the CD and how does it work?

Answer 1

I like the Certificate of Deposit (CD) for money that is really for emergency money. The savings account may be more liquid, but for true emergency savings, you do not need liquidity. Having the money locked up in a CD may prevent people from impulse buying, which many people need help with. I would keep about 2 months minimum in living expenses in a savings of checking account that gives interest, past this I like the idea of buying a 6 month CD every month for 6 months. This way you always have one maturing each month should you need it and if you want to plan a big purchase, which is what savings is for, then you can think about it as the CD's mature and you cash them out.

Answer 2

it depends of your condition. If you don't need the money in a certain period than CD is better.