One of the least risky ways to invest is with a CD. And a fixed rate CD ensures that you’re getting a return on your investment without having to risk things falling completely apart for you (like with the stock market).
A fixed-rate CD means you invest a set amount of money in exchange for a set interest rate. The interest rate is ‘fixed,’ meaning that it doesn’t change for the entire length of your CD. And the CD itself is only valid for a set period. So you don’t have to think about when you’re going to cash out or if you’re going to let it keep accruing.
So, your fixed-rate CD could be for three months, six months, nine months, or a year. Or it could be for two, three, or five years. Of course, the specific length will vary depending on your agreement with whoever is issuing the CD. That could be a bank or financial institution, or the government directly. No matter who is offering the CD, however, you will have some associated benefits.
CDs are not risky because you invest a set amount of money at a fixed interest rate for a set period. You get your money back and the interest agreed upon when the time is up. That’s it. You’re done. You can reinvest in another CD or take your money and be done with it. For many, that’s a great way to earn some interest but not take on risk.
Fixed Rate CD May Have a Low Interest Rate
Of course, a CD doesn’t have much interest because you’re not taking on much risk, but it will be much better than the interest you get from a savings account. So you have to look around to see where the best-fixed rate CDs are. But, on the other hand, you could have some pretty good interest for a small investment.
The good news is that every financial institution will offer CDs because they all need investments to help them with different things they’re looking to do. So, look at the financial institutions you use and see whether you can get a CD with terms that work for you.
With CDs, you get a short-term investment that gives you real results, so it’s time to start investing. Contact CIT Bank to find out more about your options regarding fixed rate CD and see where you could be getting your own investment benefits in no time.