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CDs are safe investments. Like other bank accounts, CDs have federal deposit insurance for up to $250,000 (or $500,000 in a joint account for two people). There's no risk of losing money with a CD, except if you withdraw early.

A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest.

Interest Rate Risk CDs carry interest rate risk in that it's possible to lock in savings at one rate, only to see rates climb. Unless you have a step-up or bump-up CD, you wouldn't be able to take advantage of that higher rate without opening a new certificate of deposit.

What is the minimum deposit for a CD? Most CDs require at least $500 to $1,000 to open, though some have no minimum deposit requirements. Here are the minimum deposit requirements for some major banks. It's important to note that many financial institutions offer tiered interest rates.

Are CDs Worth Buying? CDs are worth buying if you know what you want to use them for and you're able to get a good interest rate and APY. Parking large amounts of money in CDs when rates are low, on the other hand, could mean missing out on the chance to earn better returns in the market.

CDs can be purchased through financial institutions such as banks or credit unions or through the secondary market. When comparing CDs, consider the interest rate, minimum deposit requirements, and early withdrawal fees.

You can earn more interest when you put your money in a CD?here are the different types offered High-yield CD. Jumbo CD. Bump-up CD. Add-on CD. No-penalty CD.