What are the advantages of putting money into certificates of deposit?

Answer by  rube26105 (379)

There are many advantages for using certificates of deposits at yu locasl bank.Many have higher yeilds than other banks though, so you have got to watch that. A 5,000$ CD has a much lesser yeild than one for 50,000$. Check you banks locally and find out who gives the best yeaild for the $ and years required.

Answer by  barkley (951)

Putting money into certificates of deposit is good because you control the term of the CD, the interest rate is fixed in most cases, so you will know how much you are earning, and CDs are generally insured so you won't lose your money unless you exceed the maximum amount.