One advantage of a fixed rate certificate of deposit over a money market account, high yield savings account or bond mutual fund is that you know exactly what the interest rate will be over the term of the CD.  Most bank CDs are for a fixed rate and a fixed term.  Money market accounts, savings accounts and bond funds will have fluctuating interest rates.  This may be an advantage if an investor will holding funds for a short term with the expectation of higher rates in the future.  However, many investors that use these products and make the investment based on the present rate of return.  For bank CDs with a fixed rate and fixed term, that rate of return is guaranteed.  With the savings account, money market account and bond fund the present interest rate has no guarantee for future rates of return.

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