If you discover that you frequently withdraw funds from your savings account, it might be time to change your approach and think about opening a different kind of account, such as a certificate of deposit (CD).
The term duration of a CD, which may be anywhere from a few days to 10 years, locks you into that commitment.
The APY on these accounts is often higher than that of conventional savings options, but you give up liquidity in exchange for the higher interest rate.
The first deposit is made by new account holders, who then leave their money alone (although certain CDs allow you to make further contributions later on).
Your original contribution will increase over time thanks to the miracle of compound interest, which takes care of the rest.
An early withdrawal penalty of one to two months' worth of interest payments, or even more depending on the account, may apply if you choose to take some or all of the money out before the term is out.
Our study mostly relies on how sell-side analysts that follow the stock are updating their profit predictions to reflect the most recent commercial developments.
The Fortune Recommends editorial staff selected its top ten recommendations after ranking more than 40 CDs with three-year durations.