How Much Can You Earn With a Certificate of Deposit?

Certificates of Deposit (or CDs) are quickly becoming a preferred way to grow your income while protecting it from the ups and downs of the stock market. With a CD, you invest your money with the bank for a set period of time, and you earn interest on your deposit during that time. If you remove the funds before the CD matures, you'll face a penalty. You can look at a CD like a loyalty program to reward bank customers for saving. So how much can you earn?

There's No Limit to What You Can Earn with CDs

The amount you earn with a CD depends on two things - how long you invest your money with the bank, and how much of it you invest. Aurora Bank and many other banks have a wide variety of CD plans that let you invest as little as $1,000 for as short as six months and as long as five years. This makes CDs an ideal way to save for short term or long term goals. Whether you're planning a family vacation or helping to fund a child's college future, CDs can help you reach your goals faster.

Managing Your CD

Obviously, you don't want to choose only CDs for managing your money. Banks offer many different products and services to fit a wide variety of incomes and financial goals. You can even deposit different amounts into different CDs and choose varying maturity rates for them, so that none of your money is truly beyond your reach. But if you're looking for a safe, stable and reliable way to save for the future without the market whims changing on a daily basis, a CD is a solid way to reward yourself - just for saving!

Benefits of CDs

Because CDs are insured by the FDIC (a federal government corporation) for member Banks, they're backed by the strength of the U.S. government where other types of savings may not be. This means you can save up to the maximum allowed by the FDIC without worrying that it will lose its value tomorrow. Plus, the interest you earn on your investment is compounded daily and added to your balance each month, so you know your money is working hard for you. Assess your financial and savings goals and talk with your bank advisor today to learn more about how CDs can help you today and in the future.

Jess Hall writes out of Jersey City about different investment opportunities, including what to look for to find the best CD bank. Always looking for a trusted financial institution for advice and tips she tends to look to Aurora Bank more often than not.

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