CDs are back in fashion as interest rates rise

CDs, hot when Madonna ruled MTV, are back in fashion. Not the kind you are thinking of, but the ones that help in the material world. What are CDs? CDs, or certificates of deposit, are a savings account where investors park a fixed amount of money for a fixed period of time, typically six months, a year or five years. The bank then pays interest on those funds. Why are they popular now? CDs are low-risk investments that, until recently, have paid very little in return. However, their interest rates are tied to interest rates set by the Federal Reserve. Now that rates have gone up, so has interest in the CDs. Where can I find them? Most financial institutions will offer CDs. Should I shop around? Yes, rates can vary widely. Bankrate.com has a list of various CDs and their latest rates.

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