Understanding CD Types, Rates, and Earnings: A Comprehensive Guide

A financial planner explains the four main types of CDs: fixed-rate CDs offer a predetermined interest rate for a set length of time, variable-rate CDs have rates tied to an index and can fluctuate, bump-up CDs allow for a one-time interest rate increase before maturity, and no-penalty CDs provide flexibility to withdraw funds without penalties. Understanding your liquidity needs is crucial in choosing the right CD type for your financial goals.