Certificates of Deposit (CDs) pay a little more than savings accounts. What's the catch? You have to lock your money up at the bank for a while -- anywhere from a few months to a few years.
With interest rates so low, savers are looking for ways to earn a little more. CDs are an option, but you may not be happy if you have to get at your money before the CD matures. You usually have to pay a penalty, and you might not even be allowed to get the money back early for any price.
Make sure you understand the early withdrawal options before buying a CD. Ken at DepositAccounts.com explains some of the details on early withdrawal penalties for CDs.
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