Deposite

Advantages of Certificate of Deposit

By TT

September 1, 2022

Advantages of Certificate of Deposit (CD)

A certificate of deposit, sometimes known as a CD, is a promissory note that is issued by a bank or credit union.

1. Safety

The fact that a CD is a relatively safe investment is one of its most attractive features. The matured CD will continue to hold its value even if the market changes.

2. Predictability

An investor knows exactly how much the CD will be valued at the end of the term when they make the purchase.

3. Better Returns than a Savings Account

Your CD investment gives you more than  your saving bank account.

4. Flexibility of Terms

Investors can select the short-term or long-term CD option that best suits their financial position.

5. CDs may have low or no fees

Certificate of deposit accounts normally don't require a monthly maintenance cost.