A certificate of deposit is a savings instrument that lets savers earn a bit more in interest than they would in a regular savings account – with one catch. When you put money into a CD, you agree to keep it there for a specific period of time, generally between a few months to a few years. Otherwise, there are typically fairly substantial penalties for withdrawing your money before it has fully matured.
For example, there are several financial institutions offering CDs with rates that hover near 5.65% right now. Here's how the math works out for that rate:$1,000 deposit: $56.50 $5,000 deposit: $282.50 $10,000 deposit: $565 Start boosting your savings with a 1-year CD today. How to find higher CD ratesWhile those are the average rates across the country, you can likely find a much higher rate, especially if you look at online banks.