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.
OF DEPOSIT CHART
Your CD Test Score is...
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
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.
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.
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.