Choosing the right CD
Are you looking for a better yield on your savings? Better investment rate for your earnings compared to a revenue market or savings account? A certificate of deposit is what will need to earn benefits for your investment over a short period of time. So, what is a certificate of deposit (CD)? A certificate of deposit (CD) is a record issued by the commercial banks where your investment is awarded with fixed interest rates that is determined ahead of time and a fixed maturity date. CDs are the most reliable investment that a person can make. Common types of CDs that you can choose from Traditional CD: If you opt for this CD, you would receive a fixed rate of interest until your savings account is matured. Once the investment period is completed you can either withdraw the money or invest it again in another CD. Bump-Up CD This CD gives you a chance to raise the interest rate and allows you to take advantage on the rising taxes. Most of the institutions offer this type of certificate of deposit at least once during term of CD. Liquid CD The advantage of this type of CD is that it allows you to withdraw a part of your deposit without paying a penalty.