What are advantages and disadvantages of Certificates of Deposit?

Certificates of Deposit (CDs) offer several advantages, including higher interest rates compared to regular savings accounts, predictable returns, and FDIC insurance protection for amounts up to $250,000. However, they also come with disadvantages, such as limited liquidity since funds are locked in for a specified term, and potential penalties for early withdrawal. Additionally, if interest rates rise, the fixed rate of a CD may become less attractive compared to newer investment options.