Certificates of Deposit (CDs) can pay more than savings accounts, but there's a tradeoff: your money is locked up for a while.
What if you need the money or you find a better deal? You generally have to pay a penalty for cashing out early. However, you don't need to steer clear of CDs completely. Different products and strategies can help you maximize flexibility and earnings.
For example, you can ladder CDs to ensure that you regularly have cash available. You can also find CDs that allow you to take your money back without penalty (but you'll usually earn a little less for that luxury). For more details, see MyBankTracker's guide to CDs for the noncommital.
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