Money guide · CDs
When does a CD make sense?
A CD works best for money you know you will not need for a while. You give up some flexibility, and in return you know the rate and the date the money comes free again.
You know when you will need the money
If the cash is for something six months, a year, or a few years away, you can choose a CD that matures around the time you expect to spend it.
You have enough cash somewhere else
Do not use a CD for money you may need next week. Keep your emergency fund and near-term spending money liquid before you lock anything up.
You like knowing the rate will not change
With a fixed-rate CD, you know what rate you are getting for the term. That can be useful if you would rather have certainty than watch a savings rate move up and down.
Before you lock it up: Use the CD vs Savings Calculator to compare the same deposit both ways, then check currently verified CD offers by term.