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Investing in Cash

Certificates of Deposit - CD

Are CDs a safe method to invest my cash?

Yes, certificates of deposit are a very safe way to invest your cash, as each account holder at the bank is insured up to $250,000, including any CDs at that bank. Your money is always safe in a bank or CD, as bank and credit union accounts are protected and guaranteed up to the maximum amounts per account holder by the federal government. However, the rate you earn may not be safe or protected if the bank or credit union is sold and then merged with another lower-paying entity. In that case, you may actually earn less interest than before the merger or sale of your bank. You can track the health of your bank online at www.Bankrate.com or many other reputable reporting sites.



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