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Many people are looking for the safest investments they can make, while still being able to get a return on their money.  Fortunately, banks offer a wide variety of products for every risk tolerance level.  A certificate of deposit, also called a CD, is one of the safest and most secure investments available from the most common bank product offers.  The competitiveness of local, national and online banks have made it possible to compare CD rates and find one that will give you the most for your money. 

Getting Access to Your Money When You Need It

But beyond helping you save safely, CDs also have several other benefits.  If you’re worried about the early withdrawal penalty, you can always buy multiple CDs with varying deposit amounts and maturity dates (the length of time that you keep the money deposited).  This process is called laddering and can give you access to cash reasonably soon depending on how you layer each certificate of deposit.  This helps to ensure that you almost always have the ability to access at least some of your saved money in the event of an emergency or other instance when you need quick cash.

Insured and Guaranteed

Another great benefit of a certificate of deposit is that it’s insured by the FDIC at member banks, the corporation and government department that helps safeguard bank deposits against loss.  Some other investment vehicles, such as stocks and mutual funds traded on the stock market, aren’t insured or guaranteed by the FDIC, putting your funds at greater risk.  If you are averse to putting your money in the stock market a certificate of deposit is a good way to keep your money safe while still getting a return.

Multiple Deposit Amounts and Maturity Dates

Perhaps the best advantage of a certificate of deposit is how flexible it can be.  Many banks welcome smart savers, even if you only have a small amount to save or a short timeframe to save it in.  For example, some banks let you buy a CD with as little as $ 1,000 and for as short a time frame as just six months.  That makes it perfect for helping you save for important purchases such as a car or planning a special family vacation.  You can also deposit larger amounts or keep them deposited for a longer timeframe, which can give you a better rate on your certificate of deposit.

Ready to get started?  You can buy a certificate of deposit at any bank without opening an account.  Be sure that before you do, however, you compare rates online to make sure you’re getting the best deal for your money.

Jess Hall writes out of Jersey City about different investment opportunities, including how to get the competitive certificate of deposit rates. Always looking for a trusted financial institution for advice and tips she tends to look up information at http://www.aurorabankfsb.com/ more often than not.

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