fintech / news / / Fortune
A certificate of deposit (CD) works a bit like a high-yield savings account, but with tighter rules and, in many cases, a higher interest rate.
Large banks sometimes offer relationship rate bumps on CDs for existing customers.
KEY POINTS
- Big banks frequently provide a wider variety of CD terms and specialty types than smaller banks.
- CDs at large banks are not inherently safer than those at smaller banks if both are FDIC insured.
- Big-name banks may change their CD rates every few weeks, affecting timing for locking in rates.
- Some large banks occasionally offer CD rates that rival or exceed those of online banks.
COMPANIES
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