Bull CD – how and when to use it

Whether we like or not, we’re all connected to our banks in more ways that we would like to admit. Our paychecks no longer arrive at our hands, as our employers simply send our earnings directly at our bank accounts. Those accounts are better known as checking accounts and financial institutions consider them to be non-profitable. Have you ever wondered why are those considered as non-profitable? Every bank will encourage you to buy either bear or bull CD (Certificate of Deposit) which has nice interest rate rather than simply keep your money at bank account with low or no interest at all.

Checking accounts are used for everyday purposes such as paying our utility bills, shopping bills etc., either by writing checks or by using credit cards. You can also use ATMs for withdrawals and those accounts usually have no monthly maintenance fees as long as you keep certain amount of money deposited. As already mentioned, very small or no interest rates apply to the money you keep at your account.

If you have some savings and would like to invest, any bank will offer you a possibility to buy a bull CD, based on current financial climate on the market. You don’t have to be expert in the financial field to use those, all you need to know are interest rates and the time your money will be kept by bank, because once you buy CD you won’t be able to withdraw or use that money (at least not without a penalty) but in return you will end up with nice return from your investment.

When bull CDs areused? The simplest answer to this question is – when the market is in the state of the upswing. Those CDs perform well and the longer the period of your investment is the bigger return you will end up with. If you are looking to invest your savings for the longer period of time such as 3 or more years and the bank financial experts recommend them, you should definitely buy one of those.

Are the bull CDs safe? Yes they are, because they all come with the FDIC insurance. In other words, the interest rates and return of your money is guaranteed by insurance policy that comes with the CD. In the long run you can only earn more if the market is performing better than expected, and in the worst case scenario you will have only the guaranteed sum when your CD expires.

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