What is a certificate of deposit (CD) and why should I invest in one?
– A certificate of deposit (or CD) is a short- to medium-term, interest-earning, FDIC-insured investment. CDs offer a higher interest rate than other liquid savings accounts, as well as provide a guaranteed rate for a specific term. If you’re looking for a higher return rate with a guaranteed return and don’t need regular access to your money, then you should consider a CD.
• Certificate of Deposit accounts typically offer a higher rate of interest than liquid savings or money market accounts and provide a guaranteed rate for a specific term. Anyone who wants higher rates with a guaranteed return and does not need to access their money on a regular basis should consider opening a CD.
A Certificate of Deposit (CD) is a form of time deposit, meaning it will mature on a given date, which depends on the term of the CD. Consider a CD if you want a fixed rate for a specific term and do not need regular access to your money. Total deposits, including CDs, are FDIC-insured to the maximum amount allowed by law.
