We’re all guilty of it. We put money in our savings account and let it sit there, collecting dust. Industry professionals refer to this as “lazy money” and it does nothing for your financial portfolio. In order to earn a higher interest rate, you need to explore alternative account options including a CD – also known as a Certificate of Deposit.
These accounts are unique in that you earn interest daily and commit to either a 6, 12, 24, 36 or 60 month term. If you are a self-proclaimed commitment-phobe, fear not. There is a 10-day grace period in which you can cancel. Once your terms reach maturity, you’ll have the option to renew or transfer your funds into another account. Not only can a CD account be opened quickly, but the terms are flexible and the results are tangible.
Opposed to other traditional investment methods, CDs allow your funds to be much more “liquid,” meaning that you can have your money readily available should you only be interested in a short term investment. If you’re looking to save for a larger purchase down the road, such as a down payment on a home, simply choose a longer term limit!
All in all, this is an excellent investment opportunity for those looking to get their feet wet and avoid letting the dust settle in your lower interest-bearing savings account.
Article submitted by Hesper