The decision to save money is a smart one to make, but in many cases it is easier said than done. Once you do have money to put away, it’s sometimes hard to settle on a place to put it. A certificate of deposit (CD) account is one option to consider—explore whether opening a CD account is the right move for you at this point in time.
Out of Sight, Out of Mind
If you have a hard time holding onto money, a certificate of deposit is a wise choice because it encourages you to commit to saving. If you withdraw the money before the account’s expiration date, then you are penalized with fees. Also, you cannot make tiny withdrawals from a CD account as you would with a standard checking or savings account—if you decide to make a withdrawal, you must close the whole account in most cases.