Do CDs Have a Place in Your Portfolio?

Investopedia | Feb 14, 2020 at 5:11 PM
  • Investing in certificates of deposit (CDs) starts with understanding what a CD is and how it works.
  • Whereas traditional savings accounts enable depositors to access their money whenever they want it (albeit only six times a month), CDs generally require investors to keep their money invested for a specific period of time in exchange for predetermined monthly interest payments.
  • CDs offer greater flexibility, lower cost, FDIC insurance (versus private insurance), and are less complex than annuities, making them attractive to conservative investors.