Who benefits from opening a CD?

Who benefits from opening a CD?

Blog Article

For those who prefer to see their earnings in a figure form, consider $5,000 deposited into a regular savings account with an annual percentage rate (APR) of 0.33%. Twelve months later, that account will have earned $16.50. But if it was left in a CD for that same period that $5,000 would turn into $5,225 (at 4.5% interest). That's a lot more money for very little work on the behalf of the account holder Click Here

CDs are also good for people who are having difficulty growing their savings. It can be tempting to continuously swipe a debit card only to pay yourself back with the next direct deposit. You frequently won't save this way and will wind up noticing your account decrease over time. But by putting that money into a CD you can rest easy knowing it's safe (and earning interest).

There are generally little to no maintenance fees. Not only does this mean that you'll be able to hold on to all the interest you earned, but it also means that the principal you deposited will remain untouched. Compare that to the normal fees you typically see deducted from your other accounts and you can quickly see the benefit of putting that money into a CD instead.

Explore your local CD options by using the table below and start earning more money now.

The bottom lineCDs offer account holders a unique way to protect their money and earn more interest by depositing those funds into an account for a set period of time. CDs can't be accessed during this time frame (which can last months or years) but the account will typically earn significantly more interest than it would have if it was left in a typical savings account. This is an attractive option for both those who want to start earning more money and those who want a safe way to protect what they already have Here.

Report this page