You will receive both principal and interest at maturity. CDs are popular among people who like their investments low-risk and straightforward. Many advisors also consider them to be safe investments suitable for diversifying portfolios. Because your money is expected to stay on deposit until maturity, you may be assessed a penalty if you withdraw your money from it early. Usually, the penalty is three to six month's interest.
Banks sell most CDs.
Brokerage firms also sell CDs and typically look for ones with the highest rates and make them available to their clients. All expenses should be considered prior to signing up for the CD with the highest stated rate. Whereas the bank sets most CD rates, some rise with interest rates. These are called rising rate CDs. Generally, the more money deposited into the CD and the longer it stays there, the higher the rate paid.