Unit 3 – Investing: Making Money Work for You

B. Certificate of Deposit (CD) 1. A type of “time deposit” account. 2. Must leave $$ in bank until it matures (3 mths, 6 mths, 1 yr, 2 yrs, etc.). The longer you keep it in, the higher the interest rate. 3. At maturation date, you can remove it or keep it in. 4. Interest rates adjust every time it renews. 5. Severe penalties if remove money ... ................
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