A CD is an excellent way to save money and earn a higher interest rate than you would with a savings or money market account. CDs are time-based, fixed-income investments that are most often issued by banks but can be purchased through brokerages. Some banks might require you to come into can you make money in lock up branch to open a CD account, while others may let you open one online. Typically, you invest a fixed amount of money for a predetermined amount of time, called the term. If you have a longer-term CD, you may decide to withdraw the interest payments as they are received. CDs can be purchased for terms of almost any duration, though the most popular terms are in a range of between 3 months and 5 years. Almost always, the longer you allow the bank to use your money, the higher your interest rate. The interest rate situation could change dramatically during that time and you could find yourself stuck with a long-term, low-rate CD. Related Links: Are annuities right for your i...