If you’re concerned that rates will fall in the future, a five-year CD can help you guarantee a fixed yield for several years ...

Don't deposit $20,000 into either account type before calculating the interest-earning potential each offers now.

If you’re planning a big trip to Italy in six months or hoping to buy a new car next year, a CD might help you save up. A CD, or a certificate of deposit, is a type of savings account that lets ...

Real World Example of a Zero-Coupon CD To illustrate, consider the case of a 5-year zero-coupon CD with a face value of $5,000 being sold for $4,000.

Open a 5-year CD account As of June 16, 2025, the average yield on five-year CDs is 1.33%, according to the Federal Deposit Insurance Corporation (FDIC).