There is general relationship between the term or maturity of a bank CD and the interest rate, the shorter the term the lower the CD interest rate.  The short term of these CDs can be utilized to take advantage of changing markets.  By giving up extra yield by placing your funds in a short term CD you are able to reinvest the funds when these CDs mature into investments that may now pay a higher interest rate. Being attentive to market conditions is an important lesson when deciding on what term or how long to invest your money.  This is especially true when shopping and comparing bank CD rates

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