A certificate of deposit (CD) is an investment product with a fixed interest rate for a term of three months to five years.

Long-term CDs have higher interest rates.

If you withdraw money early, you’ll pay a penalty.

A CD ladder is a strategy in which you open several CDs that mature at different times to take advantage of long-term interest rates and have access to funds on a regular basis.

When a CD matures, you can reinvest the money at the same financial institution or somewhere else to get a better rate.

Compare annual percentage yields and terms from several banks and credit unions.