And you thought CDs were a thing of the past

I’m not talking about the music CDs of the 80s and 90s. I’m talking about Certificates of Deposit, also known as CDs.

A Certificate of Deposit is like a savings account where your money gets put aside and earns interest for a set time.

Now, here’s the deal – it’s not the same as a regular savings account.

Once you deposit your cash in a CD, you need to leave it untouched for the whole time it’s locked in. If you remove it early, you might get hit with penalty fees or miss out on some interest.

The good news is this: CDs usually pay better interest rates than regular savings accounts – a nice salve on the burn that comes with your money being on lockdown.

Every bank, brokerage firm, and credit union offers CDs, with many options to choose from. Typically, you’ll purchase a CD with a set term (such as 6 or 12 months). At the end of the term, you can access your cash and the interest it’s earned, penalty-free.

Some CDs have a flexible interest rate, while others have a locked rate. The benefit of a locked rate is that you will know exactly how much money you will have at the end of the term. (A flexible rate might flex higher than the locked rate, thus earning you more money, but that rate can dip, so keep that in mind).

So why would you choose a CD over other options? Well…

  • They offer a solid, safe deal with interest rates
  • They’re usually federally insured
  • The return rates outshine those of many regular bank accounts

…plus, if you’re willing to stash your cash in a CD for the long haul, the rates usually get a bump.

So, as far as investments go, it’s lower-risk and has some perks if you’re in it for the long run.

Opting for a CD can be a wise choice for secure, long-term gains.

Navigating finance can be complex, and I can’t give you tailored investment advice without knowing your specific situation and goals.

My goal as a financial advisor is to get to know my clients and act as a guide so they can make intelligent decisions with their money, be it investments or financial planning.

If you’re ready to leave DIY-ing behind and elevate your financial game, book a 15 minute consultation at (843) 475-3038 or click here to secure a spot online.