What is a Certificate of Deposit? When it comes to saving, the rules are simple: the longer you can part with your money, the more interest you'll earn. That's why checking accounts pay very little, money market accounts pay a little more, and CDs (certificates of deposit) pay the most.
When should I buy a Certificate of Deposit? If you can bear to be away from your savings for months or years at a time, a CD is for you. Since you earn a guaranteed interest rate, CDs can help balance out riskier investments like stocks.
