A smart way to save money is with a Certificate of Deposit (CD), which is a special type of account offered by banks. CDs tend to outperform high interest savings accounts and are a solid choice for growing your cash.
CDs Have Higher Interest Rates
One of the most significant benefits is that CDs come with high yield rates, which means you earn a lot more interest. The interest rate of a CD is often much higher than a savings account.1
Since you stand to earn more interest, it’s worth it to find out more about these high yields. There are many websites that compare rates to help you find the best deal.
CDs Are Safe and Secure
CDs are also a very safe type of account. When you put money into a CD, you agree to leave it there for a certain time, which could be a few months or a few years. This time is called the “term.” The longer the term, the higher the interest you earn.
CDs are covered by the Federal Deposit Insurance Corporation (FDIC).2 That means, even if the bank has trouble, your money is safe.
CDs Encourage Saving Habits
Lastly, CDs ultimately help you save. Since you agree to leave your money in the CD for the term, it helps you not spend your money. This can be a big help if you have trouble saving. The good news is that at the end of the term, you get your money back plus the interest earned.
Grow Your Savings With Certificate Of Deposit Accounts
CDs are a smart way to save and earn more money. They have higher interest rates than savings accounts, are very safe, and help you save.
But don’t just take our word for it. Explore more to find the best CD rates and terms and learn how to use CDs to grow your savings.
