Finance Globe

U.S. financial and economic topics from several finance writers.
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CD Investing: Four Benefits to Consider

Are you looking for a safe investment? If so, there is no better time than now to consider a certificate of deposit (CD). With so many benefits, you owe it to yourself to decide if this is something that could work in your favor.

Here are four of the most powerful benefits associated with CD investing:

1. Safety. Let’s face it: in today’s day and age a growing number of people are shying away from investments that are considered risky. Instead, they are opting for strategies that have a layer of safety built in.

When you invest in a CD from a federally insured bank you don’t have anything to worry about. Any investment up to $250,000 is backed by the United States government. Does it get any safer than that?

2. Large selection. There are many types of CDs to consider. From the term to the rate to the bank, this is not a “one size fits all” investment. Fortunately, a large selection makes it much easier to find the investment that is perfect for you and your financial situation.

3. Predictable return. There is no denying the excitement that goes along with stock market investing. At the same time, there is a lot of risk involved and you don’t know what return you will receive (if any).

With a CD, you can count on your investment to return a specific amount of money over a specific period of time. Even if interest rates fall, you are locked in for the term of your investment.

4. Better return than a savings account. Many people forgo CD investing, instead putting their money in a savings account. There is a time and place for stashing money in a savings account, but don’t let this stop you from considering the many benefits of investing in CDs. Generally speaking, you are going to get a higher rate of return on a CD than you would a basic savings account.

Do these benefits have you excited? Are you ready to invest in a CD? If so, now is the time to contact your local bank, discuss the CDs that are available to you, and make a final decision as to which steps to take next.
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Thursday, 25 July 2024

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