A CD enables you to "lock in" a current interest rate.

Name: A CD enables you to "lock in" a current interest rate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When you deposit money into a certificate of deposit (CD), you agree to keep the funds there for a set period of time, known as the term. In exchange, you earn a fixed interest rate that will not change throughout the term. This allows you to "lock in" the interest rate at the time of purchase, which is beneficial if interest rates are expected to decrease in the future.

A CD Enables You to "Lock In" a Current Interest