Consumer interest rates are at their highest level in years, and several top-notch financial institutions are offering yields of 5% or higher on certain types of CDs. Certificates of deposit, or CDs, are far more appealing places to keep cash than they were just a few years ago. But like any other account, they have pros and cons to consider.
For example, while CDs allow you to lock in a certain interest rate for a certain amount of time, they also come with penalties if you withdraw your money early.
With that in mind, here's a list of 10 benefits and potential drawbacks of putting your cash in a CD, so you can make the best decision for your own financial situation.
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