Eli5 how do investment cds work
In: 7
They’re kind of like a savings account, but set amounts of money for set amounts of time. So instead of having an account you can move money into and out of whenever you want, a CD would be a set amount of money (eg. $1000) and set amount of time (eg. 1 year). In return for the banks known stability of the deposit, they typically pay a higher interest rate.
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