Hi everyone and welcome to the Money Girl Podcast. I'm Laura Adams the author of the new book Money Girls Smart Moves to Grow Rich.

In last week's show I gave you tips about how to invest money in the financial markets without taking too much risk.

This week I'll tell you about CDs or certificates of deposit and how you can use them to keep your money completely safe.

You'll get an overview of the different types of CDs. to keep your money completely safe.

You'll get an overview of the different types of CDs

and learn the best places to find high-yield CDs.

I'll also reveal a special technique called laddering

that's a smart way to maximize income from CDs.

So what exactly is a certificate of deposit?

Well a CD is a financial product that's offered by banks and credit unions.

The minimum amount that's required to open a CD is generally $500.

As long as you buy one from a bank with FDIC insurance or from a credit union with

NCUA that's National Credit Union Administration insurance it's federally

insured up to a certain amount just like other types of bank accounts.

A CD is different from a savings or a money market account because you give up access to your money for a period of time, which is called the term.

In exchange for agreeing not to touch your money during a CD's term, you typically get

more interest than with other types of deposit accounts.

A CD gives you a guaranteed return, albeit a low one right now,

no matter what happens to the economy or the financial markets.

Typical CD terms range from three months to five years

with the longer terms generally yielding the highest interest rates.

Though it can be really tempting to buy a CD with the longest term, you have to be certain that you won't need to withdraw the money before the maturity date, because that can result in a high penalty.

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