When interest rates are high, you can park your money in a certificate of deposit (CD) or high-yield savings account to earn more money. With CDs, you tie up your money for a fixed amount of time in exchange for regular interest payments that you cash out at the end of the CD’s term.
Many CDs offer a fixed interest rate, so your annual percentage yield (APY) doesn’t vary because of market volatility or changes to the Fed’s benchmark rate. CDs are generally considered low-risk investments, but if you have a callable CD, you might be taking on more risk than expected.
