Is a CD a good investment? The answer to that question depends on a number of factors, including the type of CD, when it was purchased, and the current interest rate environment.
In general, a CD is a safe investment, since it is backed by the federal government. However, in a low interest rate environment, a CD may not be the best investment option. For example, if you purchase a five-year CD with a 2% interest rate, you will earn less than the rate of inflation, which means you will lose purchasing power over time.
In contrast, if you purchase …