What is a Term CD?
A term cash deposit, or term CD, is a savings account where your money is meant to be untouched for a specific period of time. As opposed to short-term CDs, term or long term CDs usually have a maturity date of more than 12 months. Cash deposit accounts are meant to increase your savings risk-free, as the money deposited is insured against loss. A term CD is different from a traditional savings account in that your money is kept for a set amount of time. In return, the bank will sometimes grant you a higher interest rate than it would for a savings account. Your money in a CD is meant to make more money for you, as long as you leave it alone for the entire term. It is possible to remove your money early from a term CD but it usually comes with stiff early withdrawal penalties. On some long-term accounts, you can lose 6 months to 1 year worth of interest. Generally, removing your money before the CD reaches maturity is discouraged, but allowed as financial need may sometimes be unpredic
