Exploring the Logic Behind Investing in CDs Over 5.00% Rates

Buying CDs: Pros and Cons

Investigating the advantages and disadvantages of investing in Certificates of Deposit at rates above 5.00%.

Pros:

• Low Risk: CDs are often considered a safe investment option.
• Guaranteed Returns: Higher rates provide attractive returns.

Cons:

1. Limited Liquidity: Funds are tied up for a specific term.
2. Opportunity Cost: Potential for higher returns with other investments.

Investors should weigh these factors before committing to CDs.