Where Should I Keep My Money?

Certificate of Deposit

A certificate of deposit, commonly referred to as a CD, is an excellent option to keep money safe. It’s best to use a CD if you’re not interested in accessing your funds anytime you want. A certificate of deposit can be opened as long or as short as you’d like, but you typically earn a higher interest rate if you open a long-term one rather than a short one. Most are best when opened for a year or more, and this is one of the best options you have regarding investing. Choices range from a few days to as long as ten years. The savings rates are much higher with CDs because the bank knows you’re not touching this money for at least a year in most instances. If you want to put thousands of dollars into a CD with at least a twelve-month term, you could earn more than one hundred dollars in interest in just a year. However, if you want to keep your money easily accessible, a certificate of deposit is not the best choice.

Continue for details on savings bonds.