Certificates of deposit (CDs) are low-risk savings that can increase your earnings with interest.
If you’re looking for low-risk savings options that can increase your earnings with a set interest rate, a Certificate of Deposit (CD) might be right for you. Choose a term from 14 days to 5 years or more to increase your earnings. Whether you’re saving up for a family vacation or equipment for your business, a CD is a great way to save for a goal.
How Do Certificates of Deposit Work?
CDs are among the safest investment a person or business can make. The interest rate is determined ahead of time and your deposit may be insured up to $250,000, similar to a regular checking or savings account.
Minimum amounts to open an account vary based on the CD duration, and are as low as $100. Interest rates for CD accounts are higher than money market and checking accounts. All gains from CDs are taxable as income unless they are in a tax-deferred (IRA) or tax-free (Roth IRA) account.
