Since interest rates are down compared to last year — and likely to remain unchanged or fall even further in 2020 — it's a good time to be strategic about where you save money.
A certificate of deposit (CD) can offer good earning potential without any of the risk of a stock market investment or the variable interest rates of a high-yield savings account.
When you open a CD, you agree to lock your money up for a specific period of time — usually anywhere from three months to five years — in exchange for a fixed annual percentage yield (APY). You typically can't access your cash until the CD's maturity date without incurring a penalty, which makes it a good place to safely grow money that you need at a certain date and not before then. It can also help curb impulse spending.