Question

Why does a CD have a slightly higher interest rate than a typical savings account at a bank?

Answer 1

A CD is a type of deposit account

Answer 2

Answer:

A CD is a type of deposit account that often pays a higher interest rate than a standard savings account in exchange for restricting access to your funds during the CD term — often between three months and five years. ... You also might have to forfeit a portion of the interest you earned, depending on the bank's policy.