Improve Your Investment Earnings

Make sure your excess money is earning as high a rate of return as possible. Certificates of deposit offer a low-risk and safe way to invest.

A certificate of deposit (CD) is a Federal Deposit Insurance Corporation (FDIC) insured time deposit issued by banks and brokerage firms across the country. Technically, a CD is a promissory note from the issuing bank. You are essentially loaning your money to a bank that will, in turn, repay you with interest at the end of the term.

CDs generally carry a fixed rate of interest — the higher the deposit, the higher the rate of return — and are available in terms as short as one week and as long as several years. The most common are three, six or twelve months, and three or five years. Generally, longer terms yield higher rates of return. Bear in mind that there are penalties for early withdrawal.

Here are some of the benefits offered by CDs:

AAA offers FDIC-insured bank CDs through Bank of America and currently holds more than $1.5 billion in member deposits nationwide. For current rates or to open an account, call 800-526-7120 from 8 a.m. to 8 p.m. (EST) Monday through Friday, and 8 a.m. to 5 p.m. on Saturday, and mention priority code JA14863.

HIGHROADS Home