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A recent survey from Achieve found that more than half of Americans (58%) feel uneasy about their finances. Between higher prices, stubborn inflation and growing debt, it’s no surprise that money worries weigh heavily on households.
In uncertain times, it’s natural to want more stability. One way to find that is through a certificate of deposit, or CD. It’s not flashy, but it’s steady—a safe place to park your money and earn interest without riding the stock market rollercoaster.
Why CDs Might Be Your Next Smart Move
A CD is a savings account with a twist. You deposit a fixed amount of money with a bank or credit union, agree to leave it untouched for a set period and earn a guaranteed interest rate.
The term can range from a few months to several years, and generally, the longer you commit, the higher the interest rate. Because you can’t touch the money without facing a penalty, a CD encourages saving over spending.
Why a CD Makes Sense Right Now
Predictability is valuable in a climate where 58% of Americans say they are worried about money. Unlike stocks, a CD guarantees your returns, so you know exactly how much your money will earn. That certainty can be reassuring when budgets are tight and unexpected expenses pop up.
CDs also carry minimal risk. The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) insures them up to $250,000 per depositor. That means your money is safe even if the bank runs into trouble—something not all investments can promise.
If you spend impulsively or feel uneasy seeing cash sitting in a checking account, moving money into a CD takes it off the table. It’s a simple way to set money aside for the future while still earning interest—and it can feel surprisingly reassuring when your finances feel shaky.
How To Pick the Right CD
Not all CDs are created equal. Here are a few attributes to keep in mind:
- Term length. Longer terms often mean higher interest rates, but you’ll have to leave your money untouched for a longer period. Pick a term that fits your financial goals and timeline.
- Interest rates. Rates can vary widely between banks and credit unions. Even a small difference can add up over time, so it pays to shop around for the best rate.
- Early withdrawal rules. Ensure you understand the penalties for accessing your money before the CD matures. Paying a penalty fee can significantly eat into your earnings.
Bottom Line
With more than half of Americans feeling uneasy about their finances, it’s smart to take steps to secure your money. A CD offers guaranteed returns, low risk and a way to keep your savings intact while you plan for the future.
It’s not the most exciting investment out there, but it’s reliable—and right now, that reliability is precisely what many people need. A CD is worth considering for anyone looking to build a cushion, grow savings safely or gain a little peace of mind.