You also don't need to invest a huge sum of money to open a CD. CDs do not require much attention or effort.No matter how much the economy fluctuates, your investment grows and you receive the matured balance.
Deposit agreements state how much you will receive on the maturity date. The interest rate is fixed and guaranteed. There is no risk of nominal loss in holding through the maturity date. For example, if you wish to travel, or want to put down a larger downpayment on a house or car, you can earn interest on your current savings using a CD. Open a CD if you have money you will not need imminently & want to save in a low-risk fashion for a future goal.
Maturity date – the end of the CD term, where you can withdraw your savings with interest.Principal – the amount you open the CD with, your initial, and only, deposit into the account.Here are common phrases associated with CDs.
