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11 Best Investments in 2022 Part 7_#shorts
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Today we are going to talk about the 11 Best Investments in 2022 (Part 7), short-term certificates of deposit
Short-term certificates of deposit:
A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest.
A short-term certificate of deposit would be a fixed rate of return yielded around six months. When you cash in or redeem your CD, you receive the money you originally invested plus any interest. Certificates of deposit are considered to be one of the safest savings options.
A CD bought through a federally insured bank is insured for up to $250,000. The $250,000 insurance covers all accounts in your name at the same bank, not each CD or account you have at the bank.
Who are certificates of deposits good for?
Because of their safety and higher payouts, CDs can be a good choice for retirees or anybody who don’t need immediate income and are able to lock up their money for a little bit. A CD works well for risk-averse investors, especially those who need money at a specific time and can tie up their cash in exchange for a bit more yield than they’d find on a savings account.
Never forget, Investments can develop anybody's wealth. They are a great tool for assisting you with meeting your daily financial requirements.
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