| There are many reasons that the advantages of | | | | FDIC insurance. |
| certificates of deposits are compelling. In today's | | | | Rates on savings and other variable interest are |
| market and economic situation, those reasons only | | | | constantly in turmoil: changing regularly, going up and |
| get better. The advantages of a CD are many and | | | | down without warning. One of the biggest certificate |
| long gone are the days when only farmers wanting | | | | of deposit advantages is that lack of turmoil and |
| to stash their money until they purchase their spring | | | | change. For a 5-year CD term, for instance, you are |
| seeds utilized the certificate of deposit advantages. | | | | guaranteed that interest rate over that five years, |
| Today's financial markets have two types of | | | | no matter what the market's doing. |
| investors: the instant gratification junkies and the long | | | | Currently, another of the advantages of certificates |
| term investors. The instant gratification types have | | | | of deposits are those same interest numbers. High |
| little interest in anything other than very short term | | | | yield accounts such as money market savings |
| certificates of deposit and often use them merely as | | | | accounts are not competing well with CDs. For the |
| a way to store money while they wait out a | | | | person who thinks in terms of 1, 3, and 5 years |
| maturity on something else. | | | | ahead, only the advantages of a CD can deliver real |
| For the serious, longer-term thinker, however, the | | | | and stable returns. |
| advantages of a CD are immense. Since certificates | | | | Many IRA, mutual fund, and other investors will utilize |
| offer a fixed interest rate for a set time period, they | | | | the stability of certificate of deposit advantages as a |
| make it easy to plan ahead and give a virtual | | | | base line for their portfolios. |
| guarantee of payoff. Unless the bank fails, the | | | | So consider the advantages of certificates of |
| money will be there (with interest). Even with bank | | | | deposits when you look towards your next long-term |
| failures, your initial deposit won't be lost thanks to | | | | financial goal, be it 6 months or 6 years from now. |