The Beginner’s Guide for Certificates of Deposit

Certificates of deposit, more commonly known as CDs, are investment instruments that are ideal for situations where you don’t want to take a lot of risk and you don’t need the investment to pay out for a period of months or years. If you don’t cash in the deposit during its investment period, also called the term or the duration, you will earn some interest, plus you’ll have the benefit of having access to cash that you’ve set aside. certificates are relatively low return when you compare them to other opportunities for investment, but they do pay more interest than a typical checking or savings account. So you might say that CDs offer the best of both worlds, with very minimal risk to you.