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FINANCE
Saving Smart is Simple
It’s easy to get lost in the vast sea of savings
options available. With terms like “low-risk investing”
and “high-yield rates,” it is easier to forget the
whole “savings” idea than it is to work through the
confusing world of investments.
Here’s how certificates of deposit (CDs) work: When
you purchase a CD, you invest a fixed sum of money
for a fixed period of time – six months, one year,
five years or more – and, in exchange, the issuing
bank pays you interest. When you cash in or redeem
your CD, you receive the money you originally invested,
plus any accrued interest. But if you redeem your
CD before it matures, you may have to pay an early
withdrawal penalty or forfeit a portion of the interest.
Before you consider purchasing a CD from your bank
or brokerage firm, make sure you fully understand
all of its terms. Carefully read the disclosure statements,
including all of the fine print. And don’t be dazzled
by high yields. Ask questions – and demand answers
– before you invest. These tips can help you assess
what features make sense for you:
- Find out when the CD matures.
- Confirm the interest rate you’ll receive and
how you’ll be paid.
- Ask whether the interest rate ever changes.
- Research any penalties for early withdrawal.
- Ask whether your broker can sell your CD.
- Find out about any additional feature
The bottom-line question you should always ask yourself
is: Does this investment make sense for me?
sidebar
AAA offers members exclusive, AAA-sponsored certificate
of deposit and money market savings account rates
and yields. For more information or to open an account
with as little as $1000 call 800-526-7120 or visit
aaa.com. Please mention priority code XXXXXX when
you call. These rates and annual percentage yields
(APYs) do not apply to accounts opened at Bank of
America banking centers. All accounts are FDIC insured
up to the maximum amount allowed by law. Your money
is safe and ready to grow.
Financial services products provided by Bank of America.
Bank of America, N.A. , MEMBER FDIC. C2007 Bank of
America Corporation.
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