Question

How is a savings account different from a certificate of deposit account?

Answer 1

CDs come down to interest rates and your ability to withdraw funds.

Answer 2

Explanation:

CDs comes down to interest rates and your ability to withdraw funds. Savings accounts provide less interest than CDs, but your money stays liquid. In other words, you're allowed to withdraw money at any time. Unlikely savings accounts, CDs have higher interest rates, but don't have the same liquidity.