While there are many benefits of CDs, they do have limits. Notably, after you buy a CD, you are committed for the term of the product. If you pull your money out of a CD before the end of the term, you will likely be charged a penalty. That’s why Bessette thinks CDs aren’t great places to store money you may need for day-to-day expenses. If you’re looking for accounts with more flexibility, explore money market accounts and checking accounts, which offer easier access to your money.
CDs can also require minimum deposits. The minimum is $2,500 for a Discover CD, but that can vary across financial institutions. If you have less than the required CD minimum, you might want to consider a savings account instead, Bessette says.