what are the advantages and disadvantages of a cd 
some savers like cds because of the safety they provide as well as the fact that they are perfectly predictable on the other hand cds generally promise a very modest rate of return compared to riskier investments like stocks and bonds if the interest rate offered is below the current inflation rate then investors in cds will actually lose money on their investment when it s measured on an inflation adjusted basis for this reason yield conscious investors might prefer investments that are riskier but offer higher potential returns 