A business CD is a high-yield account that locks your funds up for a designated term — anywhere from a few weeks to a few years. In exchange, certificates of deposit ypically offer interest rates far higher than traditional business savings or business checking accounts.
If you know you won’t need money for a year or longer, you can earn an annual percentage yield above 5% on your idle funds with a business CD. Want the option to occasionally tap into your savings instead? A high-yield business savings account or money market account might be a better fit.
What is a business CD?
A business CD, or certificate of deposit, is a fixed-rate business savings account with a set term — typically six months to five years.
Money deposited into a business CD must stay there for the entire term. Taking your money out early will result in a penalty of anywhere from one month’s to one…