Typical financial headlines today cite cats bouncing, beartraps and recessions. This is enough to confuse and scare the average reader. Extreme volatility in the equity markets has investors reconsidering where and when they should invest their money. With a recent rate increase, now is the perfect time to consider the benefits of Certificates of Deposit “CDs” as a safe investment option. Security One of the most enticing aspects of CD investing is security. There’s no risk of loss with CDs, since they are FDIC-insured up to $250,000 per issuer name (a joint account for 2 people is insured up to $500,000). They give you the security of a savings account with a greater return, allowing you to earn more on your savings without the uncertainty of market fluctuations. Short-term You can choose the CD term (the length of time that your money is to be invested) that works best for your investment goals. Whether saving for a large purchase or future investment, many people hold that money in a savings account. However, the interest rates for a standard savings account are minimal - sometimes as little as 0.01%. For example; you’re planning to save for 2-3 years before making the purchase. If you open a standard savings account at 0.01% with a beginning balance of $5000 and leave it there for 3 years, you would have earned around $1.50 in interest. With today’s rates, that same $5000 in a 3-year CD would earn between $450-500. Fixed Rates Although there are variable rate options, the typical CD has a fixed rate of interest that doesn’t depend on the market. The fixed rate is locked in when you open the CD, so you’ll know exactly how much you’ll earn. The CD term generally determines the rate, with longer terms offering higher rates.
A Better Way to Invest CDVantage is a unique program offered by Anthem Bank & Trust. The CDVantage team searches nationally for the best CD opportunities and provides that information to our investors. By tapping into the national market, we’re able to offer you more
options at highly competitive rates and enjoy FDIC insurance coverage. Each CD is federally insured up to the maximum FDIC insurance limits and is held in safekeeping for you by Anthem Bank & Trust. Our CD Custodial Services streamline your CD investments into one CDVantage Custody Account - a single source for placing deposits and a single account to manage. Easily access your account through our secure website that features website-enabled reporting. See your CD portfolio, confirmations, maturity schedules, interest payment details and consolidated month-end statements for all your CD deposits in one place.
For more information on CDs or the CDVantage program, please visit: https://bit.ly/cdvantagemay2022
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