The stock market can earn you some remarkable returns on your investments; it can also leave you broke. There is no sure thing in the stock market and this leaves many people wary of putting all their hard earned cash into something that is controlled by others. Many people prefer safer investment options.
One of the best compromises between security and earnings is the certificate of deposit. Though they are not a completely safe instrument since they are issued by banks and as we have recently seen, banks can a do fail, they are much more secure than stocks. Even if the bank fails, you will at least receive your initial investment since the bank is insured by the federal government. Even with bank failure as a remote possibility, you can be very sure that you will get everything promised in the initial purchase.
What you lose with CDs is higher interest. Stocks can double overnight while CDs earn a fairly low yield, though one that is nearly guaranteed. Smart CD shoppers can find good deals on CDs that pay above average rates. This is important since your money will be tied up for some time and you want the best return you can get. There are many online tools that help you find CDs with excellent rates of return.
Some of the best deals are often found at small, local banks. Often, these banks need to raise quick cash for an acquisition and therefore they offer higher interest rates than bigger banks that have other means of raising capital. Even credit card companies are beginning to offer financial instruments such as CDS and they too often offer good rates.
A properly researched CD is an excellent way to put your money to work without having to accept high levels of risk. Shop around and you might be surprised just how lucrative these instruments can be.