A Certificate of Deposit
A Certificate of Deposit is a special type of deposit account that offers a high rate of interest compared to your normal savings account. They offer flexibility because you can choose the amount of money to be deposited and the maturity date. Certificates of Deposits or CD’s are great way to earn interest on your money that you aren’t planning to use anytime soon. One would gain more money dude to higher interest than a savings account, so they are a smart choice to invest in. Along with the high interest rate, they are also FDIC insured so your money will be safe. Certificates of Deposits are a great choice for everyone and should be well known.
One reason why CDs are a smart choice is due to the higher interest rates than most bank accounts. Since banks pay people to invest in their banks, it’s a safe place where one can invest thier money to make money by just sitting around. CDs are different from savings accounts because CDs has a specific, fixed term and a steady fixed interest rate. The only downfall to these accounts are one would have to wait until it fully matures or a penalty could occur.
When one signs up for a CD account, they should leave the account alone. Early withdraw of money from it can cause a penalty fee. The longer you leave money in a bank it normally gets a higher rate of interest rateso one could make more money. The owner should only take money out of the CD unless it is absolutely necessary. The penalty could result in losing the interest the owner over the one they had previsouly gained.
A second reason why one should put thier money into a CD, is that it is safe and FDIC insured. FDIC stands for the Federal Deposit Insurance Corporation. Its is a U.S. government corporation found by the Glass-Steagall Act of 1933. It provides deposit insurance which helps insure the safety of checking and savings deposits in United States banks. FDIC insured banks are very reliable and one could trust to...