Certificates of deposit (CDs) allow you to grow your savings with little to no risk. They offer guaranteed returns, and they’re FDIC insured up to $250,000 per bank, per depositor.
But while CDs are simple investments, they aren’t foolproof. If you’re not careful, you could make costly mistakes that reduce your earnings or lock your money away when you need it most.
Here are three of the biggest mistakes you can make when investing in CDs — and how to avoid them.
One of the worst mistakes you can make is settling for the first CD you come across. Some banks offer much higher interest rates than others.
Our Picks for the Best High-Yield Savings Accounts of 2025
American Express® High Yield Savings
Member FDIC.
APY
3.70%
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