Investing 101: CDs

Investing 101: CDs



CD (Certificate of Deposit)


This is where my money had been for the past several years. CDs are similar to savings accounts in that they are insured by the issuing bank and FDIC. Contrastingly, when you invest in a CD, you’re complying with a fixed term (often monthly or yearly) in which you gain a fixed interest rate after the CD has matured.

In my situation, should I decide to renew my CD at my original bank, I would gain an annual fixed interest rate of nearly one percent after one year. Not a huge return on my investment, but hey, my money will be safe and stored away where it can’t be used on useless spending.

For now, the CD sounds like the best choice for me. Whew… that was exhausting! Glad I don’t have access to that money to take a mindless shopping trip anytime soon!

Now that you know more about basic investing, where will YOU put your money?

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