How to invest in CDs
Key takeaways
, making it an excellent choice for conservative investors. While CDs may have limitations like limited liquidity and lower return potential compared to other investments, they can provide security and peace of mind.
by offering access to more competitive rates, diverse options, and convenient management, all from a single login.
, understanding how to invest in CDs and leveraging tools like can help you make informed decisions and achieve your financial goals. Start exploring investment CDs today and take a step towards secure and stable financial growth.
Certificates of deposit (CDs) can be a great way to secure your savings and earn a predictable return. But before we dive into the details, let's cover the basics. In this guide, we'll explore the pros and cons of investing in CDs, how to invest in CDs, and highlight the benefits of using the Raisin platform for beginners.
What is CD investment?
CD investment is a popular way to save and grow your money with a fixed interest rate over a specified period of time. CDs are offered by banks and credit unions and are generally considered among the safest investment options.
How does CD investment work?
CDs require you to deposit a lump sum of money for a predetermined period, ranging from a few months to several years. In return, the financial institution pays you interest, typically higher than that offered on a regular savings account. At the end of the term, you receive your original deposit, plus the earned interest.
Are CDs a good investment?
Pros of CD investment
- Predictable returns: CDs typically offer fixed interest rates, so you know exactly how much you will earn over the term. This predictability is ideal for investors seeking stable growth.
- Variety of terms: CDs come in various term lengths, allowing you to choose ones that align with your financial goals. Whether you need short-term savings or long-term growth, there's likely a CD for you.
Cons of CD investment
- Limited liquidity: One of the main drawbacks of CDs can be a comparative lack of liquidity. Unlike a high-yield savings account, where funds can typically be withdrawn at any time, withdrawing your money before the maturity date of your CD usually incurs a penalty, reducing overall potential returns.
- Lower returns compared to other investments: While CDs are safer, they generally offer lower returns than riskier investments like stocks or mutual funds. This trade-off means you may miss out on higher potential gains.
- Inflation risk: If the interest rate on your CD is lower than the rate of inflation, your purchasing power may decrease over time, as the value of your returns may not keep pace with inflation.
How to invest in CDs
How to buy CDs: A step-by-step guide
Step 1: Determine your investment goals: Decide how much money you want to invest and for how long. Consider your financial goals, risk tolerance, and liquidity needs.
Step 2: Research financial institutions: Compare interest rates, terms, and penalties from various banks and credit unions. Look for institutions that offer competitive rates and terms that align with your goals.
Step 3: Choose a CD term: Select a term length that aligns with your investment goals.
Step 4: Open an account: Once you've chosen a financial institution and CD term, open an account. You'll need to provide personal information and fund your CD with the required minimum deposit.
Step 5: Monitor your investment: Keep track of your CD's maturity date and any interest earnings. Avoid withdrawing funds before maturity to prevent penalties.
Benefits of using Raisin for CD investing
What is Raisin?
Raisin is a free online platform that connects you with a variety of high-yield savings products, including CDs, from a network of federally regulated financial institutions nationwide. It simplifies the process of finding and managing CD investments, making it a potentially easy choice for beginners.
Why choose Raisin for CD investing?
- Competitive rates: Raisin partners with banks and credit unions, offering competitive interest rates, helping you maximize returns on your CD investments.
- Diverse options: With Raisin, you have access to a wide range of CD terms and interest rates from various financial institutions. This diversity allows you to find the perfect CD to match your investment goals.
- Convenient management: Raisin's user-friendly platform makes it easy to compare, select, and manage your CD investments in one place. You can track your investments, view interest earnings, and easily reinvest when CDs mature.
- No fees: Raisin does not charge any fees for using their platform. You can invest in CDs without worrying about hidden costs or charges eating into your returns.
How to get started with Raisin
- Create an account: Sign up in minutes by providing your personal information and verifying your identity.
- Browse CD options: Use Raisin's search tools to compare CD rates, terms, and conditions from various financial institutions. Even filter banks and credit unions based on their attributes to help you save with purpose.
- Select and fund a CD: Choose the CD that best fits your investment goals and make a minimum starting deposit of as little as $1.
- Monitor and manage: Track your CD investments and earnings through the Raisin platform. When your CD matures, you can easily reinvest or withdraw your funds.
Related Content
© 2026 Raisin SE. All rights reserved.
The Raisin name and logo are trademarks of Raisin SE. All other trademarks, logos, marks, and brand names are the property of their respective owners.
*APY means Annual Percentage Yield. APY is accurate as of April 10, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.