7 common CD investing mistakes to avoid

Investors looking for a high fixed rate on their savings can consider a Certificate of Deposit (CD). However, note that a CD usually locks up the investor’s funds for a certain period, ranging from a few months to several years. While CD rates offer attractive interest rates of up to 5%, it’s vital to understand that all investments carry some degree of risk. Here are some mistakes to avoid when opening a CD account. Not considering penalties Most certificate of deposit accounts require the investor to hold funds in the account until it matures. So, if one takes out money too soon, they might be subject to an early withdrawal penalty.