Q&A: What is a Certificate of Deposit?
If you?re looking for higher interest in an investment that?s still secure, a Share Certificate of Deposit (CD) might be the right pick. Basically, you deposit a certain amount of money for a fixed amount of time in exchange for higher interest than savings or money market accounts. There are penalties for early withdrawal, so be sure to only use money you can afford to have locked away for a while. CDs are guaranteed just like other credit union accounts, so you?ll get good returns without the risk of stocks. Pick a term you?re comfortable with, an amount you can handle having locked away for that term, and shop around for the best rate. You?re on your way!
