Why A CD Is Still A Good Investment

Posted on: 5 January 2020

When it comes to investment advice, there are a million guides out there on how to get into mutual funds or the stock market at large. While that's perfectly fine, some of these investment methods can carry higher risks. That's why any financial portfolio can still benefit from a more conservative investment like a CD. A CD at your local bank can provide you with the stability your portfolio is looking for. Here's why you should reach out to a local financial institution about their CD rates today.

CD Rates Are Fixed Meaning You Can Only Gain Money

When you put money into a CD, you are given the interest rate that the money will earn over a set amount of time. It's possible to calculate on day one exactly how much that CD will be worth in 5, 10, or 20 years and so on. If you recently lost money in the stock market or some other investment method, a CD could look like a nice safe haven to you. The interest rates likely won't set your world on fire, but it's still guaranteed extra money in a world where that's often hard to find.

The Perfect Salve to Today's Cryptocurrency Troubles

Some investments today are getting riskier and riskier. Did you recently get into Bitcoin or another type of cryptocurrency only to watch your investment completely tank in one day? Cryptocurrency and other volatile investment options can be exciting to watch as the price goes up and down and up and down, but it probably won't do much for your blood pressure either. If you've recently taken on some riskier investments, it might be in your best interest to bring balance to your portfolio by locking in a more conservative option. A CD, in other words, is exactly what you're looking for.

Easy Access for Emergencies

Money put in a CD should be left there in order to get the maximum value out of it. But this could also be a way to stash away some of your emergency fund that you don't anticipate needing anytime soon. In the event that you do actually need the funds, some CDs can be cashed out early. Yes, there might be a penalty involved, but this penalty will typically be far lower than what you would have to pay if you had to suddenly sell of your stocks that you purchased less than a year ago or if you try to cash out your 401K. 

Contact your local bank or financial institution about the benefits of CDs today