A certificate of deposit is best for

money you want to put aside for a few months or years

money you may need at a moment's notice

retirement investing

storing mortgage payments

A certificate of deposit is best for "money you want to put aside for a few moths or years".

Explanation:

Certificate of deposit pays higher interest when a lump sum of money is left in the bank for few months or years. The money should be untouched for agreed number of years or months. It varies from bank to bank. Even credit union has the option to provide certificate of deposit The interest rate will be higher than the regular savings scheme You can trust and invest since there is a return guarantee It does not lose value unless you break the agreement