Certificates Of Deposit

Certificates of Deposit (CDs) are savings certificates entitling the bearer to receive a specified interest. They are issued by commercial banks and savings institutions. The certificates bear a maturity date which can be as little as 3 months up to around 5 years from the date of purchase. So CDs give you a locked-in interest rate for the period of time you want, and a predictable payout .

CDs are very low risk savings because they are insured by the FDIC (Federal Deposit Insurance Corporation). The amount of insurance coverage varies depending on how accounts for an individual or family are structured at the issuing institution.Basic Coverage for a single account is to a limit of $100,000,for a joint account to a limit of $200,000, and for an Individual Retirement Account to a limit of $250,000.