The benefits of investing in liquid CDs

Recently, the most popular alternative of investment to a savings account is the certificate of deposit. The certificate of deposits offergreat ratereturns and is also less risky compared to other forms of investment. The other normal CDs can only be cashed in after attaining their maturity date, and failure to adhere to this usually results to very heavy penalties. Liquid CDs on the other hand gives the investor an advantage of having access to his money as well as earn higher returns.

Liquid CDs are also known not to have any penalties. They tend to be flexible and to be in sync with the needs of the customers. Thefeatures of the liquid CD have got features that resemble the other CDs, but the only different feature is the fact that the investor can choose to withdraw money in limited amountwithout attracting any penalties. The liquid CD has a variety of features which include payment of an interest rate between that offered by common CDs and money market accounts, while other CDs hold tenures of at least one year.Liquid CD is short term and therefore, holds a maturity period of less than one year.

A time window also exists after a liquid CD matures within which the investor is allowed to cash in the entire maturity amount. Liquid CDs are not time locked, and an investor can access his money without heavy penalties. The liquid CD terms vary since theyremain exactly the way they have been set by the banks. The liquid CDs start with a minimum deposit of five thousand dollarsand this happens for a period of three months to one year. Investors are allowed to withdraw an amount of five hundred dollars per week, and can also add on additional amounts to the certificate of deposits.

The liquid CDshave got a variety ofbenefits thatattract investors. Someof these benefits are possessing a better rate of interests in comparison to other certificate of deposits, as well as the savings accounts. Liquid CDs are penalty free, aside from that they are also FDIC insured. Liquid CDs are also convenient since they give access to quick money in case of any urgent situations that call for immediate funding. The liquid CDs are especially more convenient for retired people; this is because they can earn interests rates and at the same time have access to money. The flexibility of liquid CDs permits the investors to withdraw money and use it for other more lucrative business ventures. Therefore, liquid CDs present more opportunity for more profitable returns in other businesses.

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