What exactly is the difference between placing money into a CD account rather than a savings account. The interest rates seem quite similar?

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Posted by Emma He (MONEY FORUMS: 4, Answers: 5)
Asked on February 24, 2016 3:27 pm
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Once upon a time, CDs had a significantly higher interest rate than savings accounts. My first CD had a 6.25% interest rate.

Technically, in a CD you’ll forgo some of your paltry interest if you need to access the money before the CDs term is up whereas the savings account is completely accessible.

Like you, I don’t think that the extra .1% is worthwhile, but maybe in the future.

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Posted by Hannah Rounds (MONEY FORUMS: 1, Answers: 54)
Answered: February 25, 2016 7:54 am