Why Certificates of Deposit Outshine High-Yield Savings Accounts
Benefits of Choosing a CD Over High-Yield Savings Account
CDs offer a major benefit that high-yield savings accounts don't. If you buy a CD with a fixed interest rate, you will earn that return for the entire invested period, unlike savings accounts with variable rates. Evaluate if a CD is suitable for your financial goals based on your liquidity needs.
Why Certificates of Deposit Outshine High-Yield Savings Accounts
CDs offer guaranteed fixed interest rates, providing consistent earnings over time, which can be more beneficial than the variable rates of high-yield savings accounts. Consider the advantages and limitations of CDs to make an informed financial decision.
- CDs offer fixed interest rates for the entire investment period.
- Savings accounts provide variable rates that may decrease over time.
- Consider liquidity needs before choosing between a CD and a savings account.
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