cds

What is one-month CD?

 

What is a one-month CD?

(The Bankrate.com financial term of the day is:) "One-month CD."

No, this isn't something you toss out of your music collection as soon as you can't take any more of that new boy band you thought you liked. This type of CD also could be called a one-month certificate of deposit. It's a way to save your money while you make sure it's insured by the Federal Deposit Insurance Corp., or FDIC, and you'll typically earn a higher interest rate than you would on your ho-hum savings account. But you have to keep your hands off of the money for one month. Pull your money out before the maturity date, and they'll likely slap you with a penalty.

A bank customer who has enough money in a savings account to cover short-term emergencies could stick some additional savings in a one-month CD for a better yield.

To find the best rates on Certificates of Deposit, visit the CDs tab at Bankrate.com.

 

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