Review:
Certificate Of Deposit
overall review score: 4.5
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score is between 0 and 5
A certificate of deposit (CD) is a time deposit where money is deposited for a specified period of time at a fixed interest rate.
Key Features
- Fixed interest rate
- Specified period of time
- Low risk investment
Pros
- Low risk investment option
- Fixed interest rate offers predictability
- Can help diversify investment portfolio
Cons
- Funds are locked in for a specified period
- Penalties for early withdrawal
- Limited liquidity