Answer
Oct 03, 2024 - 12:23 PM
A downside of certificates of deposit (CDs) is their lack of liquidity; once you deposit your money, it is typically locked in for a fixed term, and withdrawing it early often incurs penalties. Additionally, while CDs offer a fixed interest rate, this can be a disadvantage in a rising interest rate environment, as your money is tied up at a potentially lower rate than what might become available later.
