How CD terms affect ratesĪ CD’s term period can vary, with common options including 1-year, 2-year, 3-year, 5-year, 10-year or even longer-term periods. But did you know that the CD term you choose may also affect the CD return rate - or the amount you may earn - on deposited funds? Let’s explore what CD terms are, how they relate to return rates and how compound interest can affect your CD's real rate of return. When opening a certificate of deposit (CD) account, you'll likely want to consider the length of time you'll be depositing your money, known as the CD term.
