Read a CD's early-withdrawal penalty before you open one
Added
A certificate of deposit (CD) locks up a fixed amount for a set term, like one or five years, in exchange for interest. Before you open one, read the disclosure for the rate (fixed or variable), when interest is paid, the maturity date and any early-withdrawal penalty, and only use money you won't need before it matures. Buying through a broker? Check the broker's background first.
The result
Result: Investor.gov (SEC): CDs are considered one of the safest savings options, and a CD from a federally insured bank is insured up to $250,000; the main risk is that inflation grows faster than your money.
Note: Not financial advice. General information only; check your own situation or ask a qualified professional.
Source
Investor.gov (SEC): Certificates of Deposit (CDs) (opens the original source in a new tab). Check it for the latest numbers before you act.