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If you open a variable-rate money in a CD, you could also choose to renew.

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This term, often abbreviated as CD, refers to a fixed-term deposit arrangement banks offer. A CD involves depositing a fixed sum for a predetermined duration. A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe. A CD is a way to put away money beyond what you've accumulated in your savings account, without taking on much more market risk.

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Then, you report it as income when you file your tax return. Consumer Financial Protection Bureau. The Bottom Line. When the CD is called, the investor is given back their deposit and they will no longer receive any future interest payments. It generally pays a higher interest rate.