Understanding Certificates of Deposit (CDs)

Which of the following is NOT mentioned as a way to save and grow your money?

• Investing in Bitcoin

• Using a certificate of deposit

• Buying gold and silver

• Purchasing real estate

What is a key difference between a savings account and a certificate of deposit?

• Savings accounts are riskier than CDs

• CDs are only available at local banks

• CDs require you to keep your money untouched for a fixed period

• CDs offer lower interest rates than savings accounts

How can you potentially get a higher interest rate on a CD?

• By choosing a shorter term

• By opening a CD at your local bank

• By investing in multiple CDs at once

• By selecting a longer term

What is a benefit of CDs compared to stocks and bonds?

• CDs have no withdrawal penalties

• CDs are safer and provide a guaranteed return

• CDs offer higher returns than stocks

• CDs are available at all financial institutions

What is a potential downside of withdrawing money early from a CD?

• You may earn additional interest

• You will receive a bonus for early withdrawal

• You might have to pay a fee and lose earned interest

• You can reinvest the money without penalties