You cannot lose your money in a CD or Certificate of Deposit account as the money you put into a CD bank account is safe and insured by the FDIC up to $250,000.00
Similar to a regular savings account your money is insured and you won't lose the money in the CD Account.
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