Certificate of Deposit

Is a Certificate of Deposit Right for You?

One myth about saving money is that our choices are limited between a low-yield savings account that hardly makes a difference in our finances, or, an unattainable investment account requiring tens, if not hundreds of thousand of dollars to open. Luckily, for the borrower who wants a more dynamic savings option, a certificate of deposit, or CD, may be the right choice.

A CD is a savings account that promises a higher interest rate if you keep your funds on deposit (without any withdrawals) for an agreed-upon period of time — anywhere from six months to five years. Once the CD matures, your money, accrued with interest, becomes liquid.

Straightforward and simple, CDs are more than a basic savings account. You’ll still want to compare them to other savings accounts to see if a CD is right for you. They can be opened to save for retirement, be used as a passive form of income, and be the bridge towards greater forms of investing. Should you open one from a bank, a credit union, or online? Your options and interest rates may differ depending on where you look.

Check out some of the articles below to see how a CD can benefit you and your money.

Top Articles About CDs

What is a CD?

Everything you need to know about a retirement CD

Is a CD the Best Place to Keep Your Savings?

The best places to open a CD

Investment Options When You’re Ready to Grow Your Money for the First Time

5 Simple Moves That Will Change Your Money Behaviors for the Better