Certificates of Deposit

Investing with Mike Bock

A Certificate of Deposit is a savings certificate entitling the bearer to receive interest.

Advantages:

Offered at fixed or variable rates

They earn interest at higher rates than savings accounts

You can get no penalty CD's

They are very stable investments

Disadvantages:

There can be early withdrawal penalties

Low return

- This investment has very low risk, but it is not risk free.