When should I open a CD Account?

Authored By: USMFCU on 12/11/2019

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When it comes to investing many people don’t know where to start. There are a lot of different options ranging from stocks, to bonds, to savings accounts, to CDs and it’s easy to get lost in the amount of choices. To narrow these choices down you must look at the best option for your situation, and often a CD Account is a great place to start at any age and especially when you’re younger.

 

What is a CD Account?

A CD is a special type of savings account with a minimum opening deposit amount that you must deposit in order to start the account. Once you start it, you’ll receive higher interest rate returns on the amount than if you were to put it into a regular savings account, but you won’t be able to access it for a set amount of time known as a “term”. That term is usually a few months to a couple of years. Once your CD Account “matures” you’ll get that amount back to you and reap all the interest benefits!

 

When should I open a CD Account?

It’s a great decision to start a CD Account early because of the low risk. The National Credit Union Administration (NCUA) ensures CD Accounts for up to $250,000 so they’re a very reliable way to begin investing. They are also great for people who would like a little extra help with saving their money and would like the added benefit of earning interest on the saved amount.

 

How do I open a CD Account?

USMFCU offers CD Accounts at great rates! You can choose from maturities of six months to two years and there’s only a $500 minimum deposit. If you’d like to open one give us a call at 586-756-3300 or click here.

 

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