Certificates of Deposit: Compare Available CD Options

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For people looking to save money and generate a little bit of income, a CD, or Certificate of Deposit, is a viable and safe option.

What is a CD? They're a federally insured and risk-free option that, in exchange for depositing money, generates interest which can be collected at the end of a predetermined period. You can withdraw money before the set period ends, but you will typically incur penalty fees.

CDs are usually issued by commercial banks and are insured by the FDIC, and the term of a CD typically ranges from one month to five years.

While you can't touch the principal investment in a CD, the interest that it generates is accessible and can be withdrawn without a penalty.

Those who need ready access to their money shouldn't tie it up in a CD, and should stick with a money market or savings account instead.

Finally, there is one last point to consider. Some CDs do require a minimum deposit, so keep that in mind should you decide to put your money in one. CDs aren't for everyone, but if you're intrigued, check out this chart, courtesy of FindtheBest.com. You can also visit the chart on the FindtheBest.com website for more options.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Banking and Loans , Basics , Investing Ideas

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