What are Certificates of Deposit? (CDs)

What is a certificate of deposit (CD)?

• A type of savings account with a higher interest rate

• A method of investing in gold and silver

• A financial product that guarantees a set return

• An investment in bitcoin and other cryptocurrencies

What is the main advantage of a certificate of deposit (CD) compared to a savings account?

• Higher interest rates

• Ability to withdraw money every month

• Investment in the stock market

• Access to promotional periods

How long are the typical terms for a certificate of deposit (CD)?

• Varies depending on the bank

• 5 years or more

• 3, 6, or 18 months

• 1 to 2 years

What is the benefit of shopping around for different banks when opening a certificate of deposit (CD)?

• Finding higher interest rates

• Getting access to promotional periods

• Keeping money in a safe financial instrument

• Having the ability to exit the CD early

What is the biggest downside of a certificate of deposit (CD)?

• Having a low interest rate

• Paying high fees for early withdrawal

• Losing all your money in an emergency

• Not being able to touch your money

What happens if you withdraw money from a certificate of deposit (CD) before the agreed-upon time?

• Have the option to reinvest the money elsewhere

• Get a higher interest rate for future CDs

• Receive a partial refund of the interest earned

• Lose any interest earned and potentially pay a fee