Benefits of a Certificate Account

March 24, 2023

Looking for a safe place to invest your dollars? A certificate of deposit, also known as a CD, is a popular investment option if you’re wanting to upgrade from a typical savings account. Certificates are a way to boost your returns even higher while still keeping your risks low – as long as you won’t need access to your money for a while.Unlike a savings account, Certificates don’t allow you to deposit and withdraw your funds freely. Instead, you agree to keep your money in place for a set length of time.

What are the Benefits of a CD? 

Safety

Along with savings accounts and money market accounts, CDs are some of the safest places to keep your money. That’s because money held in a CD is insured by the National Credit Union Administration (NCUA), which means your money is protected up to $250,000.

Predictability

Holding a CD also brings income predictability. At the time of purchase, an investor knows exactly how much the CD will be worth at the close of the term. Unlike the stock market, there are no market-based surprises, and the interest accrued will not increase or decrease as long as the CD is left to mature.

Guaranteed Returns

The most significant advantage of a CD is the interest rate. CDs typically offer a higher interest rate than savings accounts meaning you can earn more money on your deposit. This can be helpful if you are trying to save for a specific goal, such as a down payment on a house or retirement.

Should You Invest In a CD?

A CD is a great way to invest money you don’t need in the short term. If you’re looking for a safe and predictable way to stash your cash and earn some interest along the way, it could be a great option for your savings goals.

At CASFCU, we offer competitive rates to help you maximize your savings. If you’re ready to invest, check out our CD rates and apply today!