Invest in step up CD
Maybe you are having a hard time connecting CD to funds, so it better that you understand what CD is at the onset. Maybe you are thinking that this CD is the one that you play, but it is very far from what you are thinking right know because CD means certificate of deposit that you usually invest if you want to grow your money in a financial institution or in a bank. This is also known as the “money in the bank”. It will be very favorable to you because of the interest rate that it contains and your money will also be safer here.
When you decide to get this account, then you have to know that it has a fixed term from the 3 months up to 12 months or more. It also has a fixed interest rate so you do not have to worry incase the interest rate drop. CDD is kept in the bank until it reaches its maturity. One of the best things that you will like about it is that it is insured by FDIC. This invest is 100% risk free.
CD is the perfect choice for those who want to protect their earning as well as build their finances. If you will ask why, then the reason for this is not very hard to guess because the interest rate on CD is higher compared to ordinary savings account. Maybe you are wondering why many banks offer CD to investors when they are bound to pay higher interest rate. It is because they expect these investors to keep their money with them for a definite period of time so they can use this money for other purposes.
It is very easy for one to open. It is very simple compared to opening a bank account. If you want to get a CD from your bank all you need to do is to tell the bank that you want to buy a CD. You will be asked to fill up a very simple form with a disclosure and the bank will move your money into the CD. You will not have any actual certificate. You will just have a discreet category about your finance statements for the CD that you have created.
When your CD gained interest you will have two choices. One is to spend the interest rate that it has earned and the second option is to reinvest the interest rate that your CD has gained. It is wise choice if you will reinvest the interest rate that your CD has gained along with your deposit so your fund will grow faster. When your CD reaches its maturity, then the bank will automatically rolls out the money to create a new CD, if you will not provide a clear instruction on what to do with your CD. If you want a secure your money, then the best way is for you to invest it in CD or certificate of deposit.