Beth and mark would like to put some savings in the bank. they most likely will not need this money for 4 years, so beth wants to put it in a four-year cd. mark wants to put the money in a passbook savings account. what is the advantage of a cd

Quite often, the CD will earn more interest—even if you have to pay a penalty for early withdrawal.

For example, my local credit union offers 0.10% interest on passbook savings and 1.46% interest on a 4-year CD. One of my local banks offers 0.01% interest on passbook savings, and 0.60% on a 4-year CD.