Regardless of the CD term length, there are some factors to consider when choosing the best CD for your needs. First, shop around for the best CD rates to ensure you’re earning the most interest on your investment. Also, consider bank deposit requirements. Some banks and credit unions require no minimum deposit to open a CD, while others may require a minimum deposit of $1,000 or more. Only open a CD if you can comfortably afford the minimum needed to open it.
If you’re planning to open a CD, understand that your money isn’t easily accessible by design. Your bank may charge a significant fee if you withdraw funds from your CD account before it reaches maturity. Compare early withdrawal penalties when looking at 2-year CDs in case you need to access your money before the term ends.is a savings strategy that involves opening multiple CD accounts with varying maturity dates. CD ladders allow you to maintain more flexibility with your funds.