Did you know banks offer special savings accounts called CDs (Certificates of Deposit)? They're like a piggy bank where you keep your money for a specific time, and it earns interest! The Federal Reserve recently lowered interest rates, which affects how much money your CD can earn.
- CDs let your money grow by earning interest.
- Interest rates are changing, so it's important to compare different banks.
- Some CDs let you change your interest rate or take your money out early.
| CD Type | Interest Rate (example) | Minimum Deposit |
|---|---|---|
| 14-month CD | 4.50% | $500 |
| One-year CD | 1.81% - 4% | Varies |
The interest you earn depends on the rate and how long you keep your money in the CD. For example, $1000 in a 4% CD earns more interest than in a 1.81% CD. It's a good idea to ask your parents or guardians about CDs to learn more!
