Certificate of Deposit

Also called CD, it is a step up from your regular ol’ savings account. You still open it at a bank, and it pays you interest for a set amount of time (three months, six months, one year, five years, etc.), after which you get your initial money back. You can’t pull your money out before that time, or you’ll lose the interest—and that defeats the whole purpose of getting it in the first place. It’s worth using only if the interest rates are better than your savings account, because you won’t be able to touch the money while it’s in the CD.

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