Four Reasons Why You Should Invest in a Certificate of Deposit (CD)
In a world of seemingly limitless opportunities to grow your money, finding a secure yet high-earning path to grow your savings is important. A Share Certificate, also known as a Certificate of Deposit or CD, offers that solution for many, and here's four reasons why it's never a bad idea invest in one.
1. They're Safe
Picture your investment goals as a house you're building. A CD acts as solid foundation to ensure your finances remain intact and secure. Unlike riskier ventures, a CD guarantees the safety of your initial deposit, shielding it from market fluctuations. This protection lays the groundwork for faster savings growth by giving you peace of mind on your investment.
2. CDs Yield Bigger Returns Than Traditional Savings
While traditional savings accounts may offer minimal interest, CDs stand out by delivering greater returns with higher interest rates. In addition, CD rates are fixed, meaning there's no risk of the rate going down during the term of the CD. Without the risk of market fluctuation, CDs are an attractive option for those looking for a predictable return on investment.
3. Your Money is Federally Insured
Another layer of protection? Your money is federally insured by the NCUA up to $250,000 per financial institution. Unlike traditional stock investments, the initial investment on a CD is protected in the unlikely event of a financial institution's failure. This way, you can trust your money is safe from unforeseeable events.
4. No Monthly Fees
One great benefit of investing in a Share Certificate at Meritus Credit Union is that there are no monthly fees. The only fees associated with a the certificate are early withdrawal fees as a penalty for not carrying it the full term. No monthly fees make CDs a golden option if you're looking to maximize your dollar.
In short, a CD isn't just a savings vehicle, it's a rocket booster for your savings goals. By safeguarding your investment, earning higher interest, providing federal insurance and eliminating investing fees, a CD offers a unique blend of security, growth and simplicity. We're committed to helping your supercharge your financial growth and reach savings goals faster. Reach out to Meritus Credit Union to learn more CD options.