Certificate of deposit and Term Deposit meaning are same. Most Of United states People keen to put CD.
Certificate of deposit is Risk free Investment and Also steady one.
As per my experience this is the investment you can do if you do not know how to do business.
Normally In CD you can do Deposit for particular period.
For that period you unable to withdraw or add funds. If you withdraw funds you get penalty.
Certificate of Deposit rates always higher than the Savings rate. Most banks are profit making from From CD.
Advantages of Certificate of Deposit
Safest Investment In the Financial Industry
Disadvantages of Certificate Of Deposits
You can not withdraw your funds at anytime
Lowest Return of investment
I am using CD for long time and its good investment. If you need to take monthly interest you can take it.
But its low CD rate compare to 1 year CD rate.
Some banks in United states provide Flexibility CD’s. There is a big advantage is that you can add money during the fixed period.
For Urgent Needs you need to put 3 months Cd and put other money to 1 year Cd.
Its my way of Diverse of Earnings,
I will bring more things about Certificate of deposits.