CD's also known as Certificate of Deposit accounts are worth it.
You can still make money on a CD or Certificate Account.
CD accounts held by consumers of average means are relatively low risk and do not lose value because CD accounts are insured by the FDIC up to $250,000.00
Typically, you can open a CD account with a minimum of $1,000.00
CD account terms can range from seven days to 10 years, depending on the amount of money deposited.
A CD or Certificate of Deposit account might be a good place for short-term cash you're planning to use within a year for an expense like buying a car or a house.
But it's not a good place for long-term retirement funds.
CD accounts with a bank are a comparatively safe investment.
If they are managed properly, they can provide a stable income regardless of stock-market conditions.
When considering the purchase of CDs or starting a CD ladder, always consider the emergency money you might need in the future.
CDs are time-sensitive savings accounts, while mutual funds are investment vehicles in which money gets invested in stocks, bonds or other assets.
Learn more about mutual funds.
Which is safer: CDs or MMAs? Both CDs and MMAs are federally insured savings accounts, so they're equally safe.
A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way.
Like savings accounts, CDs are considered low risk because they are FDIC-insured up to $250,000.00