Are you looking for a low risk way to save a sum of money you will not be needing for a while? Certificates of Deposit, referred to CDs, are a type of savings product offered by banks and credit unions that may work perfectly for you. CDs often offer better terms than regular savings accounts and carry very little risk because the money is saved rather than invested in the stock market. The advantages offered by CDs are definitely worth understanding.
When you are considering a CD it is important to shop around for 3 things:
- The financial institution offering you the best rate
- The term of your CD (or how long the funds have to remain in the account to get the full return on your money)
- Any early withdrawal fees you may have to pay for tapping into your funds before the end of your term
Listen in to episode 11 of the podcast to learn all about CDs and a great CD hack called a CD ladder.
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