Are CDs safe investments?
Certificates of deposit, or CDs, are one of the safest investments you can make. They are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor, per bank. CDs are also a very liquid investment. You can usually withdraw your money at any time without penalty.
There are a few things to consider before investing in a CD. First, the interest rate on a CD is usually lower than the interest rate on a savings account or a money market account. Second, the longer the term of the CD, the higher the interest …