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CDs vs. savings accounts: What's the difference?

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CDs are for fixed long-term savings not impacted by external market factors while savings accounts are for keeping cash liquid and earning interest.
The article from Fortune discusses the differences between Certificates of Deposit (CDs) and traditional savings accounts, focusing on their respective benefits and drawbacks. CDs typically offer higher interest rates than savings accounts, making them a more attractive option for those looking to grow their savings over a fixed term, which can range from a few months to several years. However, funds in a CD are less liquid, as withdrawing money before the term ends can result in penalties. In contrast, savings accounts provide easier access to funds and more flexibility, though they generally yield lower interest rates. The choice between a CD and a savings account depends on an individual's financial goals, need for liquidity, and willingness to lock in funds for a set period.

Read the Full Fortune Article at:
[ https://fortune.com/article/cds-vs-savings-accounts/ ]