Is It Time To Use CDs For Investing Again?

Certificate of Deposit rates are back on the rise.

If you’re looking for a safe and reliable way to grow your money, consider investing in a certificate of deposit (CD). CDs are insured by the Federal Deposit Insurance Corporation (FDIC) and offer a fixed interest rate, so you can be confident that your return is guaranteed. Plus, with rates generally higher than traditional savings accounts, CDs can help you reach your financial goals even faster.

When you deposit your money in a CD, you are essentially lending it to the bank for a set period of time. In return, the bank agrees to pay you a fixed rate of interest.

However, there are a few things to keep in mind before you invest in a CD.

• First, you should make sure that you choose a reputable bank. There have been instances of fly-by-night operations taking people’s money and then disappearing, so it’s important to do your research.
• Second, be aware of the penalties for early withdrawal. Most CDs will charge a fee if you withdraw your money before the maturity date, so it’s important to make sure you won’t need that money sooner than expected.
• Finally, remember that CD rates can change over time. Locking in your rate guarantees you will receive the current CD rate. However, If interest rates go up, the CD will be worth more. But if rates go down, the value of the CD will decrease.

With these things in mind, a CD can be a great way to save money. Just be sure to do your research and understand the terms before you invest.

Contact your local Reliabank to find out our current available rates.

Member FDIC.