Investors are attracted to high yield certificate of deposits for their potential for greater returns.
A certificate of deposit offers a fixed term for the investment, usually ranging from 3 months to 5 years.
Certificate of deposits are considered low risk investments because they are FDIC insured up to a certain limit.
The maturity date of a certificate of deposit is the date when the investment reaches its full term and can be withdrawn without penalty.
If you withdraw funds from a certificate of deposit before the maturity date, you may incur an early withdrawal penalty.