|
What Your Certificate of Deposit
Test Score Means

Find Out What CD Is Right For You
If you're looking for an investment that protects your principle while
giving you a higher return than traditional savings accounts, Certificates
of Deposit (CDs) are a smart option. They are FDIC insured which means
that your money is protected by the US Government up to $100,000.
To help you decide whether a short-, medium- or long-term CD is right
for you, compare your test score to the chart below.
CERTIFICATE OF DEPOSIT CHART
If Your CD Test Score is...
Under 70 points:
You need a lot of liquidity, so a CD may not be right
for you. Keep
accumulating money in an investment savings account, like a money
market account.
70 to 80 points:
You need some liquidity, but you can afford to lock
your money in for
a short period of time. Choose a short-term CD that matures in 7 days
to 12 months, and match the maturity date to your needs.
85 to 95 points:
You will probably require access to your funds within
the next 12 to 24
months. Select a medium-term CD that matures in 1 to 2 years, and
match the maturity date to your needs.
100 points or more:
You can afford to take advantage of the higher interest
rates a long-term
CD yields. Consider a CD that matures in 2 to 10 years, and match the
maturity date to your needs.
Next Steps:

|